The Ministry of Energy does not expect consequences for the market after force majeure at the Orsk Oil Refinery
[ad_1]
The Ministry of Energy of the Russian Federation confirmed media information that the owner of Orsknefteorgsintez (Orsk Oil Refinery), the Forteinvest company, declared force majeure on the fulfillment of obligations at the auction of the St. Petersburg International Commodity and Raw Materials Exchange (SPbMTS). The agency believes that this will not have an impact on the market. Forteinvest warned about a possible delay in the shipment of products due to the suspension of work due to floods in the Orenburg region.
“The force majeure declared by Orsknefteorgsintez under exchange contracts for the supply of fuel is temporary. Consequences for the market are not expected, since most of the units at the Orsk Oil Refinery were stopped for scheduled repairs even before the flood began,” the Ministry of Energy said in a statement (quoted from “Prime”).
The Orsky Refinery is part of the structure of Forteinvest JSC in the industrial block of the Safmar group. The production capacity of the plant is 5 million 760 thousand tons per year. Oil refining is carried out using the fuel option.
According to the Ministry of Energy, the maximum amount of fuel lost will be about 0.1% of the planned production in Russia in April. The refinery is expected to start up as soon as water levels “become optimal.” The Ministry believes that the domestic market is fully supplied with supply; automobile fuel reserves amount to about 2 million tons.
Forteinvest told reporters that the company is not abandoning its obligations, but “warns that product shipment dates may be delayed.” It is noted that fuel prices at the Orsk Oil Refinery have not changed. “It is now difficult to name the exact timing of the resumption of the production cycle, since they are associated with an anomalous natural phenomenon throughout the Orenburg region and neighboring regions,” the company reported.
Orsk Oil Refinery suspended work on April 7 due to the flood, which became the most abundant water in the entire history of observations in the Orenburg region. Shipments continued from the company’s reserves. Reuters and InfoTEK with reference to the letter from Forteinvest on April 10 reportedthat the company declared force majeure on the fulfillment of obligations at the SPbMTS auction.
About the shutdown of the Orsk plant – in the material of Kommersant FM “The flood stopped the refinery”.
[ad_2]
Source link
