Shell: may bring Australia diesel cargo forward
The Australian unit of Royal Dutch Shell (RDSa.L: Quote, Profile, Research) said on Friday it may bring forward a planned diesel import cargo to meet strong demand from miners in western Australia after an explosion cut gas supplies.
The blast earlier this week at a gas plant operated by a unit of Apache Corp (APA.N: Quote, Profile, Research) has left mining companies, metals refiners and other industrial users in Australia’s most important mining region out of fuel or scrambling for alternative sources of gas or diesel to minimise the impact on production.
“We have received interest from customers to lift more diesel than their forecast demand in western Australia,” Shell Australia said in a statement.
“We are currently able to meet 100 percent of forecast demand, and will have some capacity to meet any increased demand beyond that once an import cargo of diesel arrives in Esperance at the end of next week. This import was planned prior to the gas supply disruption. ”
“We will continue to monitor the demand requirements of customers and may bring forward the next planned diesel import cargo if required and if it’s possible.”
Apache said on Friday it would be at least two months before it could resume partial gas sales from the western Australia plant. For more details, see [nSYD278058].
The Australian unit of BP (BP.L: Quote, Profile, Research) said it was producing diesel at maximum levels at its Kwinana refinery in western Australia, and was investigating ways to import additional diesel from other countries to help compensate for the gas shortfall.
“Obviously, with an increase in demand of the scale that we’re potentially experiencing it would require imports, but I can’t say for sure if that’s the case at this point in time,” said spokesman Chandran Vigneswaran.
Source: Reuters