A new cohort of players is leasing oil storage facilities at Dubai’s Jebel Ali amid an influx of Russian oil products to the terminal. Jebel Ali is a relatively small, but important, storage and blending hub for the Middle East products trade, with trading firms importing a range of products and blending them to meet buyers’ specifications for re-export.
Totsa, the trading arm of TotalEnergies, has traditionally been a leading player at the terminal. The firm brings in equity cargoes of gasoline from its nearby 460,000 b/d Satorp joint venture refinery with Saudi Aramco, blends it with lower-quality products from elsewhere and then sells to regional markets such as Pakistan and Iraq. By diluting the high-quality Satorp equity barrels, Totsa can sell higher volumes into markets with lower emissions standards and secure larger margins. (CONTINUED - 663 WORDS)