Coal news and updates

Will there be exclusive deal by Indian co with Saudi refinery?

March 5: Even as supplies of petroleum coke from the newly-built refinery at Saudi Arabia are yet to commence, there is speculation within the industry that a leading Indian company is trying to enter into an exclusive arrangement to procure the entire production from the refinery.

"We have heard of some talks between a leading Indian corporate house and the Saudi Arabia's refinery, but nothing is final as of now," said an official with a leading cement company with offices in Mumbai.

ICMW could not confirm whether it is just a rumour or indeed some talks are on.

Saudi Arabia's national oil company, Saudi Aramco, and France's Total Oil Co have formed a joint venture company, named Saudi Aramco Total Refining and Petrochemical Company (SATORP), to set up a 20-mtpa refinery on the shores of the Persian Gulf that will also produce 2.1 million tons (mt) of petroleum coke.

The refinery was expected to commence production of pet coke from November-December 2013 itself but as it will start from sweet crude oil, the initial production will be low sulphur pet coke which will not be purchased by cement makers as its cost will be high and would be sold as anode grade.

But, later on, it will start using its own high sulphur crude from which fuel grade pet coke will be produced.

"We have been hearing for the last three months that one shipment of high sulphur pet coke from Saudi Arabia's refinery is ready but, as on date, nothing concrete has emerged," the official said.

Asked if they had entered into any deal with the Saudi Arabian refinery, the official replied in the negative.