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Iranian crude lands at Cartagena
Iranian crude has arrived at the Spanish Mediterranean port of Cartagena for the first time since EU and US sanctions were lifted. But Saudi Arabia is readying itself for increased competition from Iranian grades in the Mediterranean region, boosting cargoes arriving at Cartagena to a three year high.
Spanish refiner Repsol received 1.04mn bl of Iranian crude at Cartagena, where it has a 220,000 b/d refinery, on 2 July. Iranian crude landed in Spain in April and May at Algeciras, where Cepsa has a 240,000 b/d refinery.
In the last year Repsol has generally been landing crudes from Saudi Arabia, Mexico, Iraq, Libya and Brazil at Cartagena, largely diverting Angolan, Nigerian, Kazakh and Russian cargoes north to its 180,000 b/d unit at Tarragona. Shipping Iranian crude into Cartagena suggests Repsol could allow Iranian and Saudi grades to compete at the port.
Saudi cargoes offloaded at Cartagena amounted to 3.1mn bl (105,000 b/d) in June, according to provisional data from the port authorities, the highest amount of Saudi crude landed at the port in a month since April 2013.
Cartagena landed a total of 8.8mn bl (295,000 b/d) of crude in June, for the Repsol refinery there, for the firm's 135,000 b/d inland plant at Puertollano or for the 650,000 t/yr Iberian Lube plant, a joint venture with South Korea's SK. Iberian Lube shipped 14,000t of base oils to Rotterdam, 28,000t to Bombay, India, and 1,400t to Livorno, Italy in June as it raises output.
Repsol is also increasing gasoline shipments from Cartagena, suggesting it is boosting runs to cash in on healthy margins. It shipped 765,000 bl of gasoline from Cartagena in June, with destinations including New York and Morocco. It also moved out 1.4mn bl of naphtha, with 800,000 bl destined for Brazil.
Cartagena also houses major Spanish biofuels installations. Dominant producer Musim Mas shipped out 6,500t of biodiesel from its 200,000 t/yr plant during June as the unit runs close to capacity. Indebted bioethanol producer Abengoa is also continuing to operate its 117,000 t/yr unit at the port, even as it attempts to sell the facility to raise cash, with the firm shipping out a 3,500t cargo in early June and early July.
Argus Crude
