Turkish refiner Tupras has booked an 80,000dwt vessel as floating storage to load jet fuel and diesel, as middle distillates demand has fallen sharply in the Mediterranean as a result of the Covid-19 pandemic.
Tupras will use the vessel mostly for jet fuel storage, as demand for the product has dried up because of widespread flight cancellations. Mediterranean jet fuel demand has fallen more sharply than in northwest Europe, with Italy and Spain taking lockdown measures earlier than most other European countries.
The move by Tupras to book floating storage probably indicates that onshore storage at Tupras plants has reached near full capacity. Tupras declined to comment.
Market participants said Tupras has reduced runs at its 227,000 b/d Aliaga and 227,000 b/d Izmit plants, although this could not be confirmed with the company. Slowing domestic road fuels demand could have made margins unprofitable for the refiner, as Turkey curbed public transportation in March and announced weekend lockdowns in its largest cities this month.
Tupras produced 4.8mn t of jet fuel in 2019 and the company exported 526,000t last year.
