AlwaysFree: India’s Bharat Petroleum Seeks More Crude As Refinery Runs Increase

Bharat Petroleum (BPCL) has increased run rates and sought its normal crude requirements for June delivery, as the relaxation of the country's Covid-19 lockdown boosts fuel demand. BPCL is operating its 240,000 b/d Mumbai refinery at 95 percent of design capacity and the 60,000 b/d Numaligarh refinery in the northeastern state of Assam at 90 percent. Refineries are resuming normal operations as demand revives.

The firm's Kochi refinery on the southwest coast is operating at 60-70 percent or 185,000-215,000 b/d because the areas it supplies, including Chennai, have a high incidence of Covid-19 cases and so face restricted economic activity.

Because of depleting product stocks, state-run refineries across India increased run rates substantially towards the end of May. BPCL's 156,000 b/d refinery at Bina in central India would have operated at 90 percent of design capacity but for planned maintenance at a gasoline reformer.

The higher runs are enabling Indian refiners to increase purchases of term crude. BPCL sought its normal allocations of around 60,000 b/d from the Middle East including optional quantities in June, but suppliers including Saudi Arabia, Iraq and UAE offered lower volumes and no optional supplies in line with the OPEC+ output cuts. 

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