Coal news and updates

RIL contracts to procure imported pet coke

November 03: Reliance Industries Ltd (RIL), which had started import of petroleum coke (fuel grade) recently for supply to its domestic customers on trial basis, has once again contracted to procure one parcel of imported material, industry sources said.

RIL had brought in two cargo, one each at east coast port and west coast port, of imported pet coke in August-September for supply to one cement maker and a trader, according to information available with ICMW.

“The company has already contracted for one more parcel of 50000-70000 tons, the loading of which might be done from US Gulf coast in December,” the sources said.

“The exact price of the contract is not yet final, but it will depend on the base price in the international market in December at the time of loading, plus some discount,” the source added.

The current price of high sulphur (6.0-6.5%) pet coke from US Gulf Coast is about $58.00 per ton FOB.

According to the sources, “RIL will continue to bring in imported pet coke in smaller quantities and supply to its existing customer in 2015 as well as it is does not want to lose its customer base because of lack of supply once their pet coke gasifier is up and running.”

The gasifiers, once in operation, will expectedly need about 10-12 million tons per annum of pet coke, an official of the company had earlier told ICMW.