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Unipec and ENOC place lowest offers in Bangladesh oil import tender - sources

Reuters  |  DHAKA 

By Paul

(Reuters) - Energy traders and ENOC placed the lowest offers in a tender by Petroleum Corp to buy up to 1.52 million tonnes of products for import in the second half of 2018, officials said on Tuesday.

The state-owned company was seeking between 1.1 million tonnes and 1.28 million tonnes of 500ppm sulphur gasoil, 100,000 tonnes of jet fuel and 120,000 to 140,000 tonnes of 180-cst high-sulphur fuel

Unipec, the trading arm of China's state-owned Sinopec, placed the lowest offer for the gasoil and jet fuel cargoes, beating eight other traders, two BPC officials familiar with the matter said.

It has offered to sell gasoil to at a premium of between $3.05 and $3.08 per barrel to quotes and offered jet fuel at a premium of $4.10 a barrel, they said.

Co (ENOC) made the lowest offer for cargoes, against five other companies.

The a $17.80 a tonne premium to spot quotes for

"is likely to win the tender for both gasoil and jet fuel, and ENOC will get the tender for as they came up with the best prices," one of the officials said.

"The deal will be finalised by the end of this month after verifying all other details," the added.

The tender closed on April 11 and was expected to be valid for 75 days to June 24.

BPC resumed issuing tenders for long-term contracts in February, 2016 after a 15-year hiatus, during which it negotiated directly with suppliers of

It wants to move away from direct deals as part of efforts to buy at cheaper rates.

A shortfall in supplies of has forced the South Asian country to burn oil, a costlier option, to generate

typically imports about 3.2 million tonnes of diesel and 2.5 million tonnes of annually, making it one of the top 10 such importers in the region.

Currently, BPC has term contracts with 10 companies for

BPC also buys 700,000 tonnes of Murban crude from annually and another 600,000 tonnes of Arab Light from for its only refinery.

Bangladesh, with more than 160 million people, also plans to tap currently cheap and plentiful global liquefied (LNG) supplies to fill a domestic supply shortfall.

(Reporting by Paul; Editing by David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 19:18 IST
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