News ID: 187838
Published: 0629 GMT February 17, 2017

Belarus signs contract to buy Iran crude

Belarus signs contract to buy Iran crude

Belarus's Bel Oil signed a contract to buy 80,000 tons of Iranian Light and Heavy crude oil from National Iranian Oil Company (NIOC) for loading in February.

It is the first time Belarus has bought Iranian crude oil. The country is looking for alternative crude oil supplies after Russia cut exports to Belarus in the second half of 2016 and is threatening further cuts this year over a row about gas pricing between Minsk and Moscow, four sources told Reuters.

NIOC allocated 600,000 barrels (equals 80,000 tons) to Bel Oil's subsidiary in Poland Bel Oil Polska, according to a new loading schedule for Iranian crude in February, seen by Reuters.

Bel Oil will ship Iranian crude oil to either the Black Sea port of Odessa or the Baltic port of Ventspils for rail transportation to Belarus, with the logistics yet to be agreed, two trading sources told Reuters.

It was not possible to immediately identify a vessel that will carry Iranian barrels for Bel Oil, but traders that it will be loaded around Feb. 20 from Kharg Island.

Belarus imported a total of 560,000 tons of sweet Azerbaijani Light and CPC Blend crude oil via the port of Odessa supplied by Azerbaijan's SOCAR in 2016 to cope with lower Urals supplies, Reuters trade flow system showed. However, these shipments stopped in January as Belarus looked for a sour grade to replace Urals.

Russia cut crude oil exports to Belarus to 18 million tons in 2016 from an initial planned 24 million. In January-March 2017 Russian crude oil exports schedule from Belarus was set at four million tons, which equals 18 million per year, but Russia is threatening to cut crude supplies to 12 million tons per year, Belarus President Alexander Lukashenko said.

Belarus has complained that a gas price of $132 per 1,000 cubic meters set by Russian gas group Gazprom in the past few months is too high and has been paying less for gas deliveries since the start of last year. Russia has said Belarus owes around $300 million in gas payments.

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