Reliance makes uncommon purchase of Russian naphtha, ups gasoline oil imports

India’s Reliance Industries, the operator of the world’s largest refining complicated, is snapping up Russian refined fuels, together with uncommon purchases of naphtha after some Western patrons stopped Russian imports, commerce flows information from Refinitiv confirmed.

Western sanctions towards Russia over its invasion of Ukraine have led to the emergence of uncommon commerce routes for Russian crude and refined merchandise that have been primarily bought to European international locations. 

India imported about 410,000 tonnes of naphtha, used for making petrochemicals, in Sept-Oct, the Refinitiv information confirmed.

Of this determine, Reliance acquired about 150,000 tonnes from the Russian ports of Ust-Luga, Tuapse, and Novorossiysk throughout the two months, the info confirmed.

The non-public refiner didn’t purchase Russian naphtha in 2020 and 2021. Its annual imports of Russian naphtha have been restricted to only one parcel in 4 years to 2019, the info confirmed.

The information confirmed a Panamax service Okyroe crusing in the direction of India laden with about 59,000 tonnes of Russian naphtha.

“With European international locations shutting down Russia, they should discover retailers for his or her naphtha,” a dealer based mostly in India stated, referring to Russian corporations.

Russian naphtha is being bought at decrease premiums to international locations like India, two Asian naphtha merchants stated.

FUEL OIL IMPORTS SURGE

Reliance, its two vegetation collectively able to processing 1.4 million barrels of oil a day, has emerged as a key purchaser of Russian oil since Moscow’s February army motion in Ukraine. 

It additionally buys straight-run gasoline oil from international locations, together with Iraq and Russia, to course of at cokers within the two refineries within the western Indian state of Gujarat to spice up refining margins.

Reliance’s gasoline oil imports from Russia have surged to a report 3 million tonnes for the reason that starting of this fiscal yr in April, versus about 1.6 million for all of 2021/22, Refinitiv information reveals.

Reliance is anticipated to obtain about 409,000 tonnes of gasoline oil in December, the info confirmed.

Reliance didn’t reply to Reuters emails looking for feedback.