Asia Fuel Oil-S.Korea WP buys 100,000 T for Dec

Published: 24 Nov 2009 00:29:00 PST

SEOUL, Nov 24 - Korea Western Power Co Ltd (WP) has bought a total of 100,000 tonnes tonnes of high-sulphur fuel oil for December from South Korea's smallest refiner Hyundai Oilbank and the Singapore branch of Hanwha <000880.KS> via tenders closed on Tuesday, a company source said.

The source, who declined to be identified because of the sensitivity of the issue, said the utility had bought the oil product at $490-500 per tonne on a cost-and-freight (c&f) basis. Details for the maximum 2.59 percent sulphur supply are as follows:

TONNES PRICE DELIVERY

30,000 Dec 2-6

35,000 Dec 10-15

35,000 Dec 24-29

Note: All the cargoes will be shipped to its Pyong Taek Power Plant.

The utility company irregularly buys fuel oil parcels depending on local power demand and alternative fuel prices, with its last tender in June for one 30,000-tonne cargo for September delivery. (Reporting by Cho Meeyoung; Editing by Chris Lewis) ((meeyoung.cho@thomsonreuters.com; +82 2 3704 5653; Reuters Messaging: meeyoung.cho.reuters.com@reuters.net)) (