Adani to source local refineries' fuel

For the first time, Adani Bunkering Services, part of Adani's flagship company Adani Exports, has decided to source fuel for its bunkering services from local refineries starting this month. Until now Adani sourced marine gas oil (MGO) and IFO 380 centistoke (cst) from West Asia.

The company is also acquiring two barges of 3,000 metric tonnes capacity in April and the end of May to add to the three barges of similar capacity it has utilised on hire basis.

Adani commenced its bunkering services from August 2006 and presently caters to ships calling at Mundra port and in small quantities to those in Kandla, Sikka, Vadinar and Jamnagar.

The company was able to source IFO 180 cst from India but had to import MGO and IFO 380 cst since local refineries had not begun commercial sales of the fuel. Recently, local refineries, have begun supplying both MGO and IFO 380 cst which has prompted the company to strike deals with atleast one major oil supplier for its fuel requirements.

Officials from the company say that acquiring the two new barges are a part of the company's plans to expand its reach in the bunkering facility further. After supplying small quantities of fuel to Kandla Port on barges and trucks, to Sikka and Jamnagar by barge, the company is targeting the entire Gulf of Kutch with its long coastline for its expansion plans.

At Mundra, the company caters to around 100 ships per month which would jump considerably considering 4,000 ships arrive at the Gulf of Kutch every year. It has invested around Rs 150 crore in the bunkering venture so far.

Presently, the company has a fuel capacity of around 15,000 to 20,000 metric tonnes per month which after the two new barges is expected to take it to 50,000 metric tonnes in the next three to four months. It also estimates a capacity of 1.2 million tonnes of fuel by the next two years.

"Since Mundra enjoys the Special Economic Zone (SEZ) status, the prices of fuels are at least $30 per metric tonne less as compared to those offered by PSUs at any port of the country and automatically makes us very competitive in bunkering, " said Chandan Samaiyar, Head of Bunkering, Adani Bunkering.

He also added that having consolidated its presence in the Gulf of Kutch, the company has concrete plans to extend its bunkering facilitites at Mumbai, JNPT, Goa, Kochi, among others.