Saudi energy giant Aramco’s trading unit Aramco Trading Company (ATC) has signed an agreement with the Switzerland-based major industrial commodities entity Klesch Group in order to supply feedstocks to its Kalundborg Refinery in Denmark.
According to the statement, this deal with Klesch provides Aramco a strategic footprint in the refining business in North-West Europe (NWE), a fast-growing and under-served market.
Last year, Klesch completed the acquisition of Equinor Refining in Denmark, which included the refinery, a port in the northwest of Zealand, the Hedehusene terminal near Copenhagen, as well as related infrastructure and industrial property.
According to Aramco’s statement, the agreement allows ATC to deliver 110 million barrels of crude per day exclusively, with a trading opportunity for Arabian crude placement and third-party crude and condensate and with a provision for refined products offtake.
“It will support Northern Europe’s energy requirements and give ATC the ability to supply its customers in the EU from regional capacity,” the company noted.
Mr. Ibrahim Al Buainain, President and chief executive officer of ATC said, “I am delighted to note that this transaction will give ATC (Aramco) direct access to the refining system in Europe.”
“Hence, this will also pave the way for creating a framework that will allow similar transactions in Europe and other parts of the energy map,” Mr. Al Buainain further added.
Aramco Trading Company
Established in 2010, Aramco Trading Company (ATC) is one of the fastest-growing trading houses in the region. ATC managed to successfully expand its trading activities, increase volumes, grow its geographical presence, establish new offices, and obtain global recognition in a short period while sustaining healthy financial and operational growth.