Crude deliveries to GOI Energy's 320,000 b/d Priolo refinery complex on the Italian island of Sicily rose in December, but remained below capacity. In a significant change, US grades ousted rivals to be the refinery's main supplier in 2023.
Argus tracking shows 185,000 b/d arrived last month, compared with 170,000 b/d in November. Deliveries averaged 195,000 b/d in 2023. The facility consists of an 80,000 b/d unit in Augusta harbour and a 240,000 b/d unit at the Melilli oil terminal, but the combined unit cannot readily operate above 285,000 b/d.
The refinery was sold to GOI in May 2023 by Russia's Lukoil, a deal that involved significant intervention from the Italian state. GOI is a subsidiary of Cyprus-based fund Argus New Energy which in turn is a unit of Argus Management, also registered in Cyprus. Neither have any connection with Argus Media.
It is unclear if GOI or either fund will publish quarterly results related to Priolo. The refinery said today it will publish 2023 accounts, in April or May.
Since the sale there has been a sharp change to the crude slate at Priolo, which Lukoil ran almost exclusively on Russian oil in 2022. US WTI became the plant's main grade in 2023, with receipts averaging 55,000 b/d even though the first cargo only arrived at the end of May. Since then Priolo has received significantly more US crude than in the previous six years combined (see chart). Trading firm Trafigura is central to this, through its supply and offtake agreement with GOI.
Behind WTI in 2023 the unit ran around 50,000 b/d of Caspian CPC Blend, 40,000 b/d of Azeri BTC Blend, 12,000 b/d of Iraqi Basrah Medium with Norway, Libya, Ghana and the UAE among smaller suppliers. Receipts in December comprised 50,000 b/d each of WTI and CPC Blend, 30,000 b/d of Nigerian Bonny Light, 25,000 b/d of North Sea Forties, 20,000 b/d of Basrah Medium and 10,000 b/d of Brazilian Frade.
Argus assessed these deliveries at a weighted average gravity of 37.6°API and 0.8pc sulphur content, compared with 38.2°API and 0.6pc sulphur in November. Receipts in 2023 were estimated at 38.4°API and 0.7pc sulphur, much lighter than Lukoil's Urals-based 2022 slate of 35°API and 0.9pc sulphur.
