Canada takes in more heavy sweet crude
Vortexa Snapshot: Canada takes in more heavy sweet crude
Canada’s 320,000 b/d Irving refinery in Saint John, New Brunswick took in around 1mn bl of heavy sweet Baobab crude from Ivory Coast in early August – its first intake of this grade in over a year.
- The August delivery marked first Baobab arrival in Canada since April 2018 and first to North America since September 2018. The crude is around 23 API and 0.4% sulphur.
- Delivery therefore buoyed Irving refinery’s intake of heavy sweet crude-types in Q3 to highest level since Q3 2018. In January and April it took another heavy sweet crude type, North Sea Schiehallion Blend, of around 25 API and 0.45% sulphur. Its heavy sweet crude intake in 2018 comprised the same two grades.
- Globally, heavy sweets are in high demand ahead of IMO 2020 regulations coming into force, being highly sought after for the production of 0.5% sulphur compliant bunker fuels.
Same Suezmax tanker used to deliver early August cargo to Irving – Beijing Spirit- returned to Baobab FPSO for a new load thereafter. The Shell-chartered tanker departed 22 August and is now also heading towards Canada, as per its fixture, but currently signalling ‘For Orders’.
- Largest share of seaborne crude grade-type arriving into Saint John observed to be medium sour, followed by light-sweet and medium-sweet-types, in addition to other grades.
Ivory Coast Exports:
- Meanwhile exports of niche Baobab grade were around 30,000 b/d year-to-date. In 1H 2019, a quarter of exports each went to Germany, India, France and China. May-June loading cargoes had all gone to China or India.
- Calgary-based Canadian Natural Resources (CNR) operates Baobab and Espoir fields offshore Ivory Coast.