Peru’s state refiner Petroperu is looking at the possible export of a light, sweet crude next year that could be ideal for refiners seeking to meet International Maritime Organization’s 2020 bunker fuel regulation. A drastic reduction in sulfur levels of bunker fuels, from 3.5% to 0.5% effective January 1, 2020, will cause some refiners to buy crude oil with lower levels of sulphur. Petroperu expects to have a decision on possible exports by the end of the year, according to a source close to the refiner. The main driver for Peru’s state oil company to export is a planned year-long shutdown at its 62,000 b/d Talara refinery for maintenance starting in March or April 2020. Petroperu could find itself an exporter of a light crude that is known as “crudo del noroeste”, never before seen in international exports as it is refined with heavier grades by Petroperu, including heavy, sour Loreto crude. The crude has a gravity of 37 API and 0.2% sulfur content and is produced in the northwest of the country. Peru typically has a Panamax-sized vessel (360,000 barrels) of Loreto crude, 18.1 API and 1.3% sulfur content, every other month for export. Buyers are usually Chevron in… continue reading
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Source: CTRM Center