BPCL seeks rare import tender for low-sulphur fuel oil

SINGAPORE, Mar 8 (Reuters) Bharat Petroleum Corp. Ltd. (BPCL) issued a rare import tender for low-sulphur fuel oil (LSFO) or low-sulphur waxy residue (LSWR) for prompt delivery during end-March/early April, traders said on Thursday.

The 30,000-tonne parcel, of either 0.3 percent sulphur LSFO or 0.2 percent sulphur LSWR, is for March 25-April 3 delivery to Mumbai, on a cost-and-freight (C&F) basis.

The tender closes on Friday and will remain valid till a day later.

''I haven't seen BPCL coming out to look for low-sulphur cargoes openly in the last three to four years. All they have said about the requirement is that they need it and I would think it is to meet their commitments to some utility, probably Tata Power,'' a Mumbai-based trader said.

Tata Power, India's top independent power producer, is also the largest power generator in Mumbai with an installed capacity of 1,798 megawatts (MW).

The utility had previously sought LSFO or LSWR from the spot market on several occasions last year when there were disruptions to its domestic supply.

Last year, it bought at least 150,000 tonnes from the spot market, with the last parcel delivered in October/November.

REUTERS CS DS1137