PowerSeraya to buy fuel oil from Caltex
The Straits Times, Monday, December 8, 2003
SINGAPORE utility PowerSeraya Ltd has agreed in a tender to buy about one million tonnes of high-sulphur fuel oil (HSFO) from Caltex next year, company officials said yesterday.
The city's second largest electricity generator awarded the tender to Caltex Singapore Pte Ltd, a unit of US oil major ChevronTexaco, on Dec 1, an official said.
This represents about half the fuel oil PowerSeraya plans to use next year, a second company official said. The company declined to say at what price the tender was awarded. A ChevronTexaco trader declined to comment.
"The price we got from Caltex was competitive," John Ng, PowerSeraya deputy general manager, said.
Singapore free-on-board prices for 180-centistoke fuel oil were assessed yesterday at US$167.38 a tonne and spot differential were assessed at 50 cents per tonne under Singapore quotes. The tender, which closed on Oct 31, sought about 100,000 tonnes of fuel oil a month, or 1.2 million tonnes, for delivery to PowerSeraya's Pulau Seraya power station.
"The contract we have with Caltex allows for as little as 900,000 tonnes next year and, depending on electricity demand, we could end up lifting a little more than 1.2 million," Mr. Ng said.
PowerSeraya has a 2003 fuel oil term-supply contract with European oil major BP plc for about 1.2 million tonnes, traders have said.
PowerSeraya has a licensed generating capacity of 3,100 MW and uses mainly combined cycle natural gas power plants and oil driven steam generators.
"Our objective is to push our plant to the most efficient fuel at any given time. If the oil price is low, I'll run my steam plants high," Mr. Ng said. -Reuters
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