BPCL cancels LSFO import tender

Singapore, Apr 5: Bharat Petroleum Corp. Ltd. (BPCL) has cancelled a tender seeking a total of 120,000 tonnes of low-sulphur residues for April-June delivery due to high price offers, a company official said on Thursday.

The four 30,000-tonne cargoes, of 0.2 percent sulphur for low sulphur waxy residue (LSWR) and 0.3 percent sulphur for LSFO, had been for April 28-June 8 delivery to Mumbai, on a cost-and-freight (C&F) basis.

''The offers were above expectations. The market is good for sellers, not buyers. We have cancelled the tender and will take a decision whether to reissue next week,'' the official said.

This is the second time that BPCL , which is buying on behalf of India's largest independent power producer Tata Power, is seeking low-sulphur cargoes.

Earlier this month, BPCL bought its first parcel on Tata Power's behalf -- a 30,000-tonne lot of 0.2 percent sulphur LSWR for March 25-April 3 delivery to Mumbai -- from BP at an undisclosed price.

BPCL is the main supplier of low-sulphur fuel oil (LSFO) for power generation to Tata as it is the only refiner that has a pipeline connection to the utility's plant in Mumbai.

Previously, Tata, the largest power generator in Mumbai with an installed capacity of 1,798 megawatts (MW), had issued its own tenders when it requires spot fuel oil supply.

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

Reuters