Petrogas to ship Azeri jet fuel from Georgian port till 12 Nov
British company Petrogas plans to ship 25,000 tons of jet fuel TS-1, supplied by the State Oil Company of Azerbaijan (SOCAR), from the Georgian port Batumi on 11-12 November 2005. The SOCAR completed delivery of jet fuel by rail to the Batumi port and respectively, ended the contract with Petrogas, Trend reports.
вЂњAt present we plan to prolong the contract with Petrogas for next year. The same time we do not plan to announce a new tender on sale of jet fuel,вЂќ the SOCAR said.
Major reason for absence of plans on signing of a new contract on delivery of jet fuel via the Georgian ports Poti and Batumi is explained with big demand for this light oil product in the domestic market of Azerbaijan and Georgia.
вЂњConstantly rising demand for jet fuel by AZAL, state air company of Azerbaijan, and supplies to the Georgian market do not allow accumulating this oil product. We could supply jet fuel to Batumi within a long period with regard
to accumulate it reservoirs for the organization of one tanker batch in the volume of 25,000 tons. However, long preservation of a commodity in the reservoirs of the port will take more payments for storage,вЂќ the SOCAR said.
The SOCAR concluded the contract this year with Petrogas for delivery of 50,000 tons of TS-1 jet fuel. The consignment of 25,000 tons was supplied, however, due to increase of its demands by the local air company, the State Concern Azal, SOCAR was in doubts as to the shipment of the remaining 25,000 tons. Lowering of the oil export through Baku-Novorossiysk oil pipeline enabled to enhance more production of the jet fuel and resume its deliveries for Petrogas.
The jet fuel is produced at the Heydar Aliyev Oil Refinery (former Azerneftyanajag), a part of SOCAR. Prior to Petrogas SOCAR shipped the product to the Swiss trader Glencore in the amount of 75,000 tons.