Jan 11, 2022
Aramco Trading Company will supply 110,000 b/d of crude to the Danish Kalundborg Refinery, following the signing of an agreement with Klesch Group.
Saudi Aramco’s trading house will supply the agreed volumes with possible Arabian crude placement, third-party crude and condensate and a provision for refined products offtake, the company said in a statement on Jan. 11.
The deal allows ATC to have access to the refining market in Northwest Europe.
Klesch Group, which has offices in London and Geneva, acquired Equinor Refining in Denmark in December last year. The acquisition included the Kalundborg refinery, a terminal in the northwest of Zealand, the Hedehusene terminal near Copenhagen as well as other infrastructure assets.
The crude supply deal would allow ATC to have “similar transactions in Europe and other parts of the energy map,” Ibrahim al-Buainain, president and chief executive of Aramco Trading, said.
Saudi Arabia’s exports of crude and condensate into Northwest Europe have fallen from a high of 312,000 b/d during a time of record output in April 2020 to 32,000 b/d in August 2020, according to shipping data from Kpler.
Saudi Arabia’s biggest buyers of crude are China, Japan, India, South Korea and Egypt. Significant volumes are also delivered to Egypt, the US, Taiwan and Singapore, the data showed.