Sri Lankan bunker supplier Lanka IOC, which commenced bunkering operations from its Trincomalee oil terminal on the east coast of Sri Lanka late June, is targeting to sell 10,000 mt of 380 CST fuel oil and marine gasoil by the end of this year, an official at Lanka IOC told Platts Monday.

 

Lanka IOC, the subsidiary of Indian state-owned Indian Oil Corp., has sold more than 4,000 mt of both 380 CST fuel oil and MGO since it began bunkering operations at Trincomalee on June 25.

 

It hopes to increase this volume to 6,000 mt in its second month of operations, the official who declined to be named said.

 

In a statement released Friday, Lanka IOC said its bunkering operations will provide an additional fuel option to vessels operating in the Bay of Bengal.

 

"Lanka IOC has positioned one bunker barge having a capacity of 1,400 mt 380 CST fuel oil and 400 mt marine gasoil at Trincomalee for delivering marine fuel bunkers to the ships at berth and anchorage," the statement said.

 

"With more than 30 meters draft available, Trincomalee Canyon provides natural shelter making this port a better place for bunkering at anchorage even during adverse weather," the statement added.

 

Lanka IOC is capable of storing 20,000 mt of 380 CST fuel oil and 6,000 mt of MGO at its storage tanks in Trincomalee.

 

The company typically imports fuel oil via a tender process and it may come from either Singapore, Fujairah or India.

 

Lanka IOC is currently offering 380 CST fuel oil at $350/mt and MGO at $620/mt for delivery during the next one or two weeks.

 

Last Thursday, Platts had assessed the same 380 CST fuel oil grade for delivery in Singapore at $309/mt and MGO at $499.50/mt.

(platts.com)