Bloomberg News

Reliance Exports Rise as Jet Fuel Shipments More Than Triple

June 09, 2011

June 10 (Bloomberg) -- Fuel exports by Reliance Industries Ltd., India’s largest publicly traded company, climbed at least 15 percent in May as the owner of the world’s biggest refining complex more than tripled jet fuel shipments.

The Mumbai-based company, controlled by billionaire Mukesh Ambani, shipped at least 2.3 million metric tons of oil products from its Jamnagar facility in western India last month, up from 2 million tons in April, according to ship-tracking data compiled by Bloomberg and vessel fixtures from Clarkson Research Services Ltd.

Reliance exported at least 410,000 tons of aviation fuel, compared with about 120,000 tons a month earlier, according to transmissions captured by AISLive on Bloomberg and data from Clarkson Research, a unit of the world’s biggest shipbroker. Prices for jet fuel in Europe, which took 85 percent of the cargoes, climbed to the highest in 32 months in April as fighting in Libya reduced supplies.

Manoj Warrier, a spokesman for Reliance in Mumbai, didn’t respond to an e-mail seeking comment. All figures from Clarkson are for single-voyage bookings and exclude long-term charters. Shipbrokers aren’t obliged to report charters so the scope of data capture can vary from month to month.

Jet Fuel Demand

About 1.6 million tons of aviation fuel were shipped or provisionally booked to sail to Europe from the Middle East or India before the start of the peak summer travel season, compared with 1.2 million tons in April, according to reports from three shipbrokers including Delhi-based Interocean Shipping.

FedEx Corp., the biggest air-cargo carrier, and Cathay Pacific Airways Ltd. forecast a pickup in freight demand in the second half of the year.

The Tamar was hired in May by Total SA to transport 65,000 tons of jet fuel to Europe from the port of Sikka near Jamnagar, vessel fixture data show. The ship was last tracked near the Suez Canal, according to transmissions captured by Bloomberg.

Reliance’s gasoline shipments dropped 27 percent to at least 880,000 tons as a surge in U.S. prices for the motor fuel reduced demand. The company shipped at least 380,000 tons of gasoline to the U.S., down 21 percent from a month earlier. Other destinations included Singapore and Africa.

Gasoline prices at the pump climbed 28 percent in the first four months of this year, according to the American Automobile Association. Demand fell 322,000 barrels in the two weeks ended May 6, according to the U.S. Department of Energy.

Qi Lin Zuo

The Qi Lin Zuo was hired in late April by New York-based Hess Corp. to ship 65,000 tons of gasoline to the U.S, according to vessel fixtures. The tanker left Sikka in early May and was last tracked off the coast of New York, after sailing through the Suez Canal, the Mediterranean Sea and the Atlantic Ocean, data compiled by Bloomberg show.

Reliance’s gasoil, or diesel, shipments fell 3 percent to at least 455,000 tons last month, the data show. Destinations for diesel cargoes in May included Brazil and Africa. The company also shipped 255,000 tons of naphtha, mainly to Japan. It exported about 300,000 tons of fuel products that couldn’t be identified.

The Rich Duke II, chartered to transport 90,000 tons of diesel, left Sikka in mid-May and was last tracked near South Africa, heading to the port of Cotonou in Benin, West Africa, vessel fixture data and ship transmissions show.

Reliance runs two refineries in Gujarat state. They can process heavier grades of crude and have a throughput of as much as 1.24 million barrels a day, accounting for about 1.6 percent of global refining capacity, according to the company’s website.

The company exports more products from its plants than state-owned rivals such as Indian Oil Corp. and Bharat Petroleum Corp., which sell most fuel domestically below international rates.

--Editors: Paul Gordon, Ryan Woo

To contact the reporter on this story: Pratish Narayanan in Mumbai at pnarayanan9@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus