Yasref refinery in Saudi Arabia to load first gasoline cargoes

(MENAFN- Arab News) LONDON: Saudi Arabia's Yasref refinery a joint venture between Saudi Aramco and China's Sinopec will load its first gasoline cargoes this week according to traders and shipping fixtures.

On Feb. 6 the 400000-barrel-per-day (bpd) refinery which has already shipped its first diesel cargoes will load a 60000-ton cargo of gasoline on the Serengeti a panamax tanker booked by Total's shipping arm.

The cargo will go to Fujairah United Arab Emirates rather than Asia as some traders originally expected.

Total has nominated the panamax Constantinos for another 60000-ton gasoline cargo to load at Yanbu on Feb. 10. This is also likely to stay in the Middle East according to the fixture's destination.

"I think they want to keep some of the barrels within Saudi so will move it from Yanbu to other ports such as Ras Tanura. It's a long way to go and it's easier than trucking it" one trader said.

At least three new middle distillates shipments have also been fixed to Europe according to traders and shipping fixtures.

Unipec has fixed the STI Broadway to load 80000 tons on Feb. 11 ENI has chosen the Alpine Mystery to load 40000 tons on Feb. 5 and ST Shipping has chosen the Ocean Crown to load 80000 tons of diesel on Feb. 8.

European-based traders and refiners are monitoring exports from the Yasref refinery as the new capacity will erode their market share.

Mediterranean refiners in particular are thought likely to be vulnerable to a ramp-up in exports from the Middle East. "It would eventually put pressure on the Med as we export from Europe to the Red Sea" a trader said.

The refinery is expected to reach full capacity in mid-February. A source close to the company said most of the middle distillates volumes coming out of Yasref would be heading to Europe for now as the East-West spread is currently favorable.

He said European demand was good due to worries about the refinery strike in the United States which could reduce the amount of US diesel heading to Europe.

In addition Latin America has been absorbing a lot of US diesel and US domestic demand is higher than usual because diesel is used for heating in the winter in some states.