Ceypetco seeks rare diesel cargo

Tuesday, 7 August 2012 02:40 - - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters): The Ceylon Petroleum Corp is seeking a rare better-quality diesel grade due to a temporary domestic shortage caused by a drawdown in stocks after the firm delisted oil trader Vitol, industry sources said on Monday.

The company is seeking 26,000 barrels of gasoil with 500 parts-per-million (ppm) sulphur to be delivered into Colombo on 11 August in a tender that closes on 7 August.

Ceypetco usually buys gasoil with a higher sulphur content of 2,500 ppm or 0.25 per cent.

“Ceypetco had to issue the super diesel to customers from its own stocks due to a controversy with a cargo supplied by Vitol earlier,” a source familiar with the matter said.

Ceypetco on Saturday took Vitol, the world’s largest oil trading firm, off its supplier list, believing diesel supplied by the firm had damaged vehicles.

Vitol has rejected the allegation and said the cargo in question was tested in accordance with international standards by Ceypetco inspectors before it was discharged.

Vitol is due to deliver a combination gasoil and gasoline cargo to Ceypetco on 21 August. Ceypetco has not decided if it will accept this cargo, the source said.