Orlen sees no immediate supply disruptions as Saudi oil deliveries set to drop
SEATTLE (Oil Monster): Poland's Orlen (PKN.WA) said on Monday it saw no immediate supply disruptions even as shipping data pointed to a steep decline in Saudi crude cargoes scheduled to move from Egypt's Sidi Kerir terminal to Poland this month.
In August, 10 tankers carrying a combined volume of 6.6 million barrels departed for Gdansk from Sidi Kerir in Egypt, LSEG data showed.
Three tankers with a total oil volume of 2.1 million barrels were set to take the route this month, including two provisional deals, data showed. Saudi Aramco supplies some 40% of the oil processed by Orlen.
"Feedstock deliveries to group refineries are proceeding without disruption. The company consistently diversifies its supply sources and expands its own upstream operations," Orlen's press office said, without addressing directly the drop in Sidi Kerir's deliveries.
State-controlled Orlen is the largest listed energy company in Central and Eastern Europe, and one of the largest buyers of Saudi crude in Europe.
MarineTraffic vessel-tracking data showed crude oil tankers from the U.S., Algeria and Norway heading to Gdansk, which feeds Orlen refineries in the same city and the group's biggest plant in Plock.
Together the refineries have a combined capacity of 486,000 barrels per day. Saudi Aramco holds a minority stake in the Gdansk refinery, while 70% is controlled by Orlen.
Saudi Arabia has temporarily shut the East-West Pipeline following a drone attack last week, disrupting a route that allows the kingdom to bypass the Strait of Hormuz and transport crude to the Red Sea export terminal of Yanbu.
Part of that crude is then shipped through Egypt's SUMED pipeline to the Mediterranean terminal of Sidi Kerir for onward exports to Europe, including Poland.
With the East-West Pipeline out of service, Yanbu will have to rely on storage inventories, which three industry sources estimate could sustain exports for only five to seven days.
Courtesy: www.reuters.com