TNB seeks 130,000 tonnes of fuel oil
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TNB seeks 130,000 tonnes of fuel oil
SINGAPORE: National power producer Tenaga Nasional Bhd (TNB), is seeking another 130,000 tonnes of fuel oil for power generation, the third time it is seeking large volumes this year, signalling that the country’s natural gas supply remains disrupted, industry sources said yesterday.
It is seeking seven low-0.98-density cargoes of 12,500-23,000 tonnes each, for delivery between the second half of August and September, after buying more than 200,000 tonnes for delivery between April and August.
“It would seem that their problems with the natural gas supply have not been resolved, and that it would last, at least until next month,” a Singapore-based Western trader said.
“They had cut back on the volumes quite substantially in their last tender, after issuing it, and that implied that the natural gas supplies could be coming back online at the time, but it would seem that it hasn’t.”
TNB, which does not normally import fuel oil, has bought about 145,000 tonnes and 65,000 tonnes on two occasions this year, and also imported electricity from neighbouring Singapore, following the maintenance shutdown of gas production platforms owned by state oil company Petronas.
In the latest tender, it is seeking five of seven cargoes – three 20,000-tonne lots and two parcels of 23,000 tonnes and 22,000 tonnes – for delivery to the Kapar power station in Selangor between second-half August and Sept 22 either on a free-on-board or delivered ex-ship basis. — Reuters
The remaining two, of 12,500 tonnes each, are for delivery in the second and fourth week of September to the Sultan Iskandar Power Station in the southern port of Pasir Gudang.
The tender closed late yesterday and will remain valid for two days.
TNB last bought three cargoes, totalling 65,000 tonnes, for August delivery at premiums of above US$20 a tonne to Singapore spot quotes, on a cost-and-freight Malaysia basis.
Before that, the state-owned utility had also bought another five cargoes totalling about 145,000 tonnes, for delivery in the second quarter, at steady price levels from oil major Shell and European trader Mercuria.
Traders said premium levels are expected to be higher this time round, due to tight on-specification supplies in the market, particularly on density.
It is seeking seven low-0.98-density cargoes of 12,500-23,000 tonnes each, for delivery between the second half of August and September, after buying more than 200,000 tonnes for delivery between April and August.
“It would seem that their problems with the natural gas supply have not been resolved, and that it would last, at least until next month,” a Singapore-based Western trader said.
“They had cut back on the volumes quite substantially in their last tender, after issuing it, and that implied that the natural gas supplies could be coming back online at the time, but it would seem that it hasn’t.”
TNB, which does not normally import fuel oil, has bought about 145,000 tonnes and 65,000 tonnes on two occasions this year, and also imported electricity from neighbouring Singapore, following the maintenance shutdown of gas production platforms owned by state oil company Petronas.
In the latest tender, it is seeking five of seven cargoes – three 20,000-tonne lots and two parcels of 23,000 tonnes and 22,000 tonnes – for delivery to the Kapar power station in Selangor between second-half August and Sept 22 either on a free-on-board or delivered ex-ship basis. — Reuters
The remaining two, of 12,500 tonnes each, are for delivery in the second and fourth week of September to the Sultan Iskandar Power Station in the southern port of Pasir Gudang.
The tender closed late yesterday and will remain valid for two days.
TNB last bought three cargoes, totalling 65,000 tonnes, for August delivery at premiums of above US$20 a tonne to Singapore spot quotes, on a cost-and-freight Malaysia basis.
Before that, the state-owned utility had also bought another five cargoes totalling about 145,000 tonnes, for delivery in the second quarter, at steady price levels from oil major Shell and European trader Mercuria.
Traders said premium levels are expected to be higher this time round, due to tight on-specification supplies in the market, particularly on density.
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