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Bitumen loading operations resume at Augusta

  • Spanish Market: Oil products
  • 10/11/22

Bitumen tanker loading operations are resuming at Algerian state-owned Sonatrach's terminal on Sicily, Italy, after a five-day halt caused by unspecified technical issues.

The 6,265 deadweight tonne (dwt) Iver Brilliant, which has been waiting outside the port since 3 November, is understood to be leading the queue followed by four other bitumen tankers — the 6,187 dwt Iver Best, the 6,165 dwt An Hai Wan, the 8,021 dwt Poestella and Sonatrach's 5,000 dwt Ain Zeft. All of them have been waiting at Augusta for several days.

Prevailing costs for such waiting times are high, with time charter rates for 5,000-6,000 dwt bitumen tankers in the Mediterranean market currently in a range of $13,000-14,000/d amid scarce spot tanker availability and high freight rates.

Sonatrach's 198,000 b/d Augusta refinery is a key producer of bitumen, exporting around 75,000t in October, primarily feeding the Algerian market but also terminals in Ireland, Romania, Tunisia and southern France.

Market participants said the loading delays mean there is little to no spot cargo availability out of Augusta for the rest of November, resulting in offers for those supplies reported at around parity to fob Mediterranean high-sulphur fuel oil cargoes, compared with prevailing bid-offer discussions so far this month at a $10-15/t discount for Italian, Greek and Turkish export cargoes.

By Tom Woodlock and Keyvan Hedvat


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