Does the country’s economic recession interrupt Ceypetco contracts?

According to a tender document on the company’s website; Sri Lanka’s Ceypetco has issued a tender to buy 500 ppm sulphur gasoil contract cargoes for the first time in more than a year.

 

The state-owned refiner is seeking to purchase four cargo shipments of 280,000 barrels each for delivery to Colombo between July 1 and December 1 this year.

 

The tender is to close on May 23, with validity until July 22 as per the document data.

 

In order to deliver between March and October in 2023, Ceypetco previously sought gasoil contract cargoes in January 2022. However, the sale details for that tender could not be confirmed. 

 

Due to a credit decline in the country, the contract buying hiatus happened, with the refiner mostly seeking spot delivery parcels in the past few months to meet immediate demand requirements, two trading sources said.

 

One of the two sources also said that several earlier tenders were cancelled or delayed too.

 

Source: Reuters