(Argus, 23.Oct.2019) — Colombian oil supplier Petromil is offering low API gravity, high viscosity 0.5pc sulphur maximum fuel oil for bunkering in Colombia.
Petromil’s low-sulphur fuel has typical sulphur content of 0.407pc, viscosity of 126.6 centistokes, API gravity of 15.7 and pour point of -15°C. The fuel is low-sulphur Colombian crude which Petromil procures from an oil well on which it has a long-term lease. Petromil’s 0.5pc sulphur fuel is stable because it is not a blend. The product is priced at a premium to Brent crude.
Petromil supplies conventional fuel oil and marine gasoil (MGO) to Cartagena via barge and truck and to the ports of Barranquilla, Santa Marta, Buenaventura and Tolu via truck. Petromil has one bunker barge which carries MGO. It will take delivery of a second bunker barge in a month, 80pc of its capacity will be allocated for MGO and 20pc for fuel oil. Petromil’s residual fuel oil has typical viscosity of 320 centistokes and sulphur content of about 1.08pc and is sourced from Colombia’s national refiner Ecopetrol. Petromil expects to continue to see demand for high-sulphur fuel oil in Colombia in 2020 from cruiseships with scrubbers. Petromil offers shipowners standard payment terms of 30 days.
In addition to bunkering, the company has a contract to supply two local power plants in Santa Marta and in Cartagena with residual fuel oil. The plants can take fuel with sulphur up to 1.3pc. Residual fuel oil demand for power generation spikes in Colombia when there is drought and local hydropower generation declines. Petromil supplies the resid to the power plants on-demand. Petromil also operates a number of gas stations across Colombia and has about 1.3mn bl of storage capacity for crude and petroleum products.