South Korea is likely to become a net fuel oil importer as Hyundai Oilbank plans to stop fuel oil exports as from July, C1 learned from industry sources.
Hyundai Oilbank will start operation of a 52-kbd residue fluid catalytic cracker in July and put an end to fuel oil exports, according to a source with the company.
Hyundai Oilbank is exporting two MR-sized cargoes of fuel oil each month, with one cargo under a long-term contract with ExxonMobil and the other one under spot trading, said the source.
Without fuel oil exports by the company, South Korea's fuel oil exports are estimated to plunge to around 200,000mt per month, down from 300,000-350,000mt of monthly average at present. This volume is estimated to be below its average monthly imports of 200,000-300,000mt.
South Korea may become a larger net importer of fuel oil in the future, as GS-Caltex is scheduled to bring one 53-kbd RFCC on stream in 2012 and it will probably stop fuel oil exports too. The company is now supplying one MR-sized fuel oil cargo to Viewsino each month under a long-term contract.
