SINGAPORE: Thailand's gas oil exports more than doubled from June to August as the country's worst floods in 50 years reduced demand for the oil product, typically used in transport, industry and agriculture.
Thailand Ministry of Energy data shows the country's gas oil exports at 146,428 barrels per day in August, from 59,165 bpd in June.
Floods that first hit the country in July have killed 297 people, caused $3 billion in damage and shut factories and industrial parks.
With the provinces of Ayutthaya, Pathum Thani and Nakhon Sawan north of Bangkok affected by floods, gas oil demand has slowed, sources said.
Thai oil product export data for September is not yet available, but data from International Enterprise showed that Singapore's gas oil imports from Thailand doubled over the first two weeks of October compared with the same period in September.
Gas oil exports from Thailand usually decrease over the fourth quarter due to increased domestic demand during year-end holidays, trading sources said. Exports of the product usually end up within southeast Asia, especially in countries like Vietnam, the Philippines and Singapore, they said.
"At the moment, gas oil seems to be at a little surplus," said a gas oil trader based in Thailand.
EXPORTS CURBED BY TURNAROUNDS
The surge in Thailand's gas oil export might slow as refinery shutdowns kick in, refinery sources in Thailand said.
IRPC Pcl has planned for a major maintenance at all of its plants for 40 days from mid-November.
Star Petroleum Refining Co, a joint venture of Chevron and Thailand's top energy company, PTT , partially shut its 150,000 bpd refinery in Rayong from mid-September for a month while Esso shut its 177,000 bpd refinery in Sriracha for two months from Sept. 16, industry sources said.
Domestic demand has been boosted by usage of diesel for boat engines and transportation, they added.
"People are able to use cars and trucks but they have to drive a longer way...truck drivers haven't stopped work and they are still delivering goods just that they have to use a longer route, so there's a flip side to the situation," said a source with a refiner.
Copyright Reuters, 2011
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