<article><p class="lead">South Africa's Engen is looking as far afield as Singapore and Malaysia for fuel oil as refinery shutdowns curb domestic availability and raise import demand.</p><p>Engen has issued a tender seeking to buy 35,000t (226,000 bl) of very low-sulphur fuel oil (VLSFO) for loading from Singapore, Malaysia or the Mideast Gulf over 17-29 May.</p><p>Engen typically seeks fuel oil from Europe and the Mideast Gulf but rarely buys from Malaysia and Singapore. It may have been prompted to look to Asia-Pacific because of tight supplies in Europe and more ample availability in the east, said traders, although this could not be confirmed with the company.</p><p>European fuel oil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) trading and storage hub fell to around a two-month low of 1.517mn t (9.78mn bl) in the week to 7 April. Singapore's onshore residual fuel oil stocks rose to <a href="https://direct.argusmedia.com/newsandanalysis/article/2203695">a more than four- month high</a> of 23.62mn bl in the same period.</p><p>Engen <a href="https://direct.argusmedia.com/newsandanalysis/article/2023667">does not</a> produce 0.5pc sulphur LSFO and typically seeks supplies from the import market. But its latest tender comes as South African demand is rising because of prolonged shutdowns at Engen's 105,000 b/d Durban refinery and other domestic plants, market participants said.</p><p>About 123,000t (26,000 b/d) of fuel oil is on course to arrive in South Africa next month, the most since April 2018, according to data from oil analytics firm Vortexa.</p><p>Engen's Durban refinery has been shut since December because of a fire, with its operating permit <a href="https://direct.argusmedia.com/newsandanalysis/article/2187486">revoked</a> until it submits a comprehensive report on the cause of the incident and a set of preventative measures. Astron Energy's 110,000 b/d Cape Town refinery is expected to remain shut until some time next year after a fire in July 2020. And the BP-Shell Sapref joint venture has extended a full shutdown at its 180,000 b/d Durban refinery to mid-June. The Engen and Sapref refineries supply all the local bunker fuel needs at the port of Durban.</p><p>Engen's VLSFO tender closes tomorrow and the winner will be notified on 16 April. The company is seeking a cargo with maximum viscosity of 180cst at 50°C, maximum sulphur content of 0.5pc and minimum flash point of 60°C, priced against either Singapore spot 10ppm gasoil or 180cst LSFO assessments. </p><p class="bylines">By Sarah Giam</p></article>
