The Viciosu cycle has started. When the bitumen price is low, the refiners would like to go for Coke or Fuel Oil. Since last November, Bitumen prices are steady and more than Fuel Oil, lot of refiners are chaning their production progrmmes back to Bitumen.
HPCL is the latest one to join the band wagon.. Pls read on the story, thanks to Reuters.
State-run Hindustan Petroleum Corp may not export fuel oil in the current fiscal year ending March as weaker monsoon has spurred demand for bitumen from construction sector, a company official said on Wednesday.
"Normally we export fuel oil in monsoon. But we have not done anything so far," the official, who declined to be named, told reporters, adding that if the monsoons continued to elude, the company would not export fuel oil "because there is no lull in construction".
"So far demand for oil products is good because of weaker monsoon," he said. "Bitumen is in full swing."
Last year, HPCL exported about 200,000 tonnes of fuel oil, he said. HPCL runs a 110,000 barrels per day (bpd) refinery in Mumbai and a 150,000 bpd plant at Vizag on the east coast.
The official said due to higher availability of domestic gas,
HPCL aims to export one million tonnes of naphtha this fiscal year, compared with 800,000 tonnes shipped out in last year.
"We hope to export one million tonnes of naphtha mainly from Vizag. At Mumbai we are maximising gasoline production. Last year NFCL (Nagarjuna Fertilizers and Chemicals) and RCF (Rashtriya Chemicals and Fertilisers Ltd) were taking naphtha from us," he said.
(Reporting by Nidhi Verma; Editing by Himani Sarkar) Source - Reuters