In the near term, gasoline imports are set to jump due to a roughly five-week outage at a gasoline-making unit at Ampol's Lytton refinery in Brisbane followed by maintenance work in May at Viva Energy's refinery near Melbourne. This presents an opportunity for sellers in Singapore and South Korea, whose supplies make up around half of total Australian gasoil imports and nearly 80% of gasoline purchases, data from Wood Mackenzie and Rystad Energy showed. Australia's growing appetite for gasoline imports, following the closure of two refineries in 2021, is likely to help boost Asian refining margins, which have already more than doubled so far this year. Imports of gasoline and diesel hit historical highs of about 166,000 barrels per day (bpd) and around 480,000 bpd respectively last year, Australian government data showed. Ampol's fluidised catalytic cracking unit (FCC) outage is likely to boost gasoline imports by 3,000 bpd on average for the year, according to energy consultancy Wood Mackenzie.
Ampol Ltd said on Monday it expected the unit would
be out of service until early May.
"The loss of the Lytton FCC reduces the supply of gasoline
components by approximately 18,000 bpd, so imports will be
increased by at least this level during April and some part of
May," Alan Gelder, vice president, refining, chemicals and oil
markets at Wood Mackenzie, said.
Australia's diesel imports are expected to rise about 2%
from 2022, partly driven by a 0.6% increase in consumption to
about 600,000 bpd, consultancy Energy Aspects estimated.
Adding to import demand, Viva Energy said it plans to shut
its 120,000 bpd Geelong refinery for major maintenance towards
the end of the first half of this year, with traders expecting
that to be in May.
Buyers will need to replenish stocks during this
maintenance, supporting demand despite expected slower
construction activities during the southern hemisphere winter, a
Singapore-based gasoil trader said.
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(Reporting by Mohi Narayan in New Delhi; additional reporting
by Trixie Yap in Singapore; Editing by Florence Tan and Sonali
Paul)
