* ADNOC offers second and third 10 ppm sulphur diesel
* ADNOC likely to shift to 10 ppm sulphur diesel for 2013
* UAE expected to switch to cleaner fuel standards from next
By Jessica Jaganathan
SINGAPORE, Aug 31 State-owned Abu Dhabi National
Oil Co offered two rare ultra-low sulphur diesel
cargoes ahead of the country's anticipated move towards cleaner
fuel early next year, industry sources said on Friday.
The company has offered its second and third cargoes of
diesel with 10-parts-per-million sulphur for sale in the spot
market, in a further sign that it will shift production
permanently to cleaner fuel.
It sold its first-ever 10 ppm sulphur diesel cargo in late
Abu Dhabi, the main crude producer of OPEC member the United
Arab Emirates, plans to switch the country's diesel fuel supply
to solely ultra-low sulphur diesel by 2013, according to a
strategic plan for 2009-2013, in a bid to align itself with the
global shift towards cleaner fuels.
ADNOC's diesel previously had a minimum sulphur content of
500 ppm but the company wants to slash that to 10 ppm, in line
with strict clean air standards in Europe, and has been studying
ways to shift production to cleaner fuel.
In its latest tender, ADNOC is offering two cargoes of
40,000 tonnes each of 10 ppm sulphur diesel for loading over
Oct. 3-5 and Oct. 15-17. The tender closes on Sept. 5 and is
valid until Sept. 10.
While ADNOC's previous cargo sold was not able to meet
European summer specifications, the current two cargoes for sale
did, an industry source said,
This means ADNOC's cargoes will be more sought after for
traders looking to move the cargoes west at a cheaper freight
rate than if they were to move them from Asia.
The two cargoes are also indicative that the company will
likely offer a term contract for ultra-low sulphur diesel for
If this happens, ADNOC will be the only refinery in the
Middle East supplying 10 ppm sulphur diesel on a regular basis.
Oman's refinery currently exports 15 ppm sulphur diesel
occasionally to Europe.
Most Middle East refineries are not able to produce diesel
meeting Europe's stringent specifications, especially for
Bahrain Petroleum Corp (BAPCO) sold a low sulphur diesel
cargo many years ago, and has the capability to produce low
sulphur diesel but currently does not do so because of better
economics for domestic 500 ppm sulphur diesel, traders said.