BP fixes foreign vessel to export ANS

OREANDA-NEWS. July 18, 2016. BP has fixed the 159,021t Tianlong Spirit to export Alaskan North Slope (ANS) crude to Asia, the first known ANS export aboard a foreign-flagged vessel.

The Bahamas-registered vessel will move a cargo on 25 July from the Port of Valdez, Alaska, to Asia.

BP applied last week to amend its Alaskan oil discharge prevention and contingency plan to cover the vessel, according to the Alaskan Department of Environmental Conservation.

ANS exports have been permitted since 1996, but the repeal of US crude export restrictions in December removed the requirement for shippers to use US flagged vessels to export ANS.

The 193,048t BP Alaskan Jones Act tanker Alaskan Legend has remained moored at Sembawang Shipyard in Singapore for dry docking since 26 June. BP's Alaska class tankers — Alaskan Frontier, Alaskan Navigator, Alaskan Legend and Alaskan Explorer — typically dry dock for around 60 days.

The ANS discount to CMA Ice Brent widened from \\$1.27/bl to \\$3.58/bl over the course of July ANS trade (12 May to 10 June) and then narrowed from \\$3.42/bl to \\$2.82/bl over the course of August trade (10-24 June).

ANS producers have exported three other cargoes of ANS to Asia in the past three years.

Alaskan Legend exported ANS to JX Nippon Oil and Energy earlier this year. The vessel departed from Valdez on 15 May and delivered crude on 4 June to JX's Kiire Terminal in Japan before heading to Singapore to dry dock.

The ANS discount to May CMA Ice Brent remained between \\$1.48-\\$1.09/bl for a volume weighted average discount of \\$1.25/bl during May trade, which took place from 22 March through 6 April. That was the narrowest average discount since October 2015 trade.

But BP may have exported an ANS cargo it would have otherwise delivered to its 222,700 b/d refinery in Cherry Point, Washington. The company shut a coker unit at the refinery in mid-May.

ConocoPhillips Jones Act tanker Polar Endeavour exported ANS to the 775,000 b/d GS Caltex refinery in Yeosu, South Korea, in May 2015 before going to Singapore to dry dock. The ANS discount to CMA Ice Brent in April 2015 trade averaged \\$3.97/bl, the deepest discount of that year, and in May 2015 averaged \\$3.56/bl.

ConocoPhillips' Jones Act tanker Polar Discovery exported ANS to GS Caltex Yeosu in October 2014. The ANS discount to CMA Ice Brent in October 2014 trade averaged \\$4.64/bl, the deepest average discount since at least October 2012.