MercoPress. South Atlantic News Agency

Fire in Argentina knocks out main refinery and imports of gasoline and diesel trebled

The processing capacity of La Plata refinery will take time to recover

Almost four million barrels of diesel and gasoline were shipped from Europe and the US to Argentina where a recent major fire in the country’s main refinery significantly diminished the supply of refined produce. The situation could extend for another two years, according to private estimates from the oil industry.

The level of imports was estimated at 140.000b/p/d in April which is three times the average of its purchases in the US during last year.

An estimated eleven shipments of diesel have been booked from Europe and the Gulf in the US for delivery May/June, following on the 450.000 tons tender launched by nationalized YPF in April, according to Buenos Aires operators.

At the beginning of last month a major fire in the country’s largest refinery in La Plata with a processing capacity of 28.500 cubic metres per day damaged a coke unit forcing YPF to increase the volume of imports.

YPF CEO Miguel Galuccio said that probably after some repairs the refinery could be processing 24.000 cubic metres by the end of May. However sources from the oil industry in Buenos Aires said that Argentina will still have to import three shipments of gasoline and three of diesel, involving 30.000 and 40.000 cubic metres each for at least the next two years.

At this time of the year the greater demand from farmers as the harvesting of summer crops advances has increased the need for abundant diesel supplies, said market sources.

Likewise three gasoline shipments from Europe are en route to Argentina and several more have been booked from the US Gulf Coast, revealed maritime agencies. Last week YPF closed a new tender which has yet to be announced.