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Reliance cancels VGO cargo buy from Nayara on FCC shutdown - sources

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Reuters NEW DELHI/SINGAPORE
Last Updated : Aug 16 2018 | 7:06 PM IST

NEW DELHI/SINGAPORE (Reuters) - India's Reliance Industries, operator of the world's biggest refining complex, has cancelled lifting of vacuum gas oil (VGO) cargo from local refiner Nayara Energy due to shutdown of its gasoline making unit, three sources said on Thursday.

Reliance on Wednesday announced that it has shut a gasoline-producing fluid catalytic cracker (FCC) unit in its export-oriented 704,000 barrels per day (bpd) refinery. The unit is expected to restart within two week, it said.sp

Reliance was to lift 40,000 tonnes of VGO, a feedstock for FCC, from Nayara's refinery in Vadinar later this month, the sources said.

Reuters on Wednesday reported that Reliance has declared force majeure on gasoline exports from its Jamnager refinery in western India.

A U.S based trade source said Reliance has declared force majeure on 4 gasoline cargoes bound to the United States due to shutdown of the FCC.

Reliance's two refineries at Jamnagar have the capability to process about 1.5 million bpd oil.

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Reliance and Nayara Energy did not respond to a Reuters email seeking comments.

Asia's gasoline crack fell on Thursday but remained close to its highest level this year due to supply disruptions after Reliance Industries declared force majeure on gasoline supplies the previous day.

(Reporting by Nidhi Verma in NEW DELHI, Jessica Jaganathan in SINGAPORE, Additional Reporting by Marianna Parraga in MEXICO; Editing by Alexandra Hudson)

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First Published: Aug 16 2018 | 7:00 PM IST

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