Indian cement companies are reportedly showing interest in buying Omani petroleum coke, as they look to secure supplies of the fuel amid rising prices and a shortage of domestic production. Oman is a major producer of petcoke, which is used as a fuel in the cement industry. Indian cement companies are among the world's largest buyers of petcoke, and the shortage has forced them to look abroad for supplies.
Petcoke coke is a solid fuel made from coal, petroleum, or other carbon-based materials, and has a higher calorific value than coal. It is also considered a cleaner fuel due to its lower emission of sulfur dioxide and nitrogen oxide.
In a recent report by Argus, Indian cement makers are looking to expand petroleum coke use in their kilns through imports in order to benefit from competitive prices compared with thermal coal. The Indian cement industry raised petcoke imports by more than 72 per cent during Q1 2023 to 3.21 million tonnes, according to GAC Shipping data.
“Indian cement makers may have an additional supply source by end of this year when Oman is expected to ship the first coke cargo from its upcoming 230,000 b/d Duqm refinery,” the report added.
Oman is a significant exporter of petcoke in the Middle East and has reportedly been approached by several Indian cement companies for the purchase of petcoke. The potential export of petcoke to India could further strengthen the trading relationship between Oman and India and provide new opportunities for Omani businesses.
In 2021, the Sultanate of Oman exported $196 million worth of petroleum coke, making it the 30th largest exporter of petroleum coke in the world. At the same year, petroleum coke was the 25th most exported product in Oman. India is the main destination of petroleum coke exports from Oman with value of $112 million in 2021. Other top markets of Oman’s petroleum coke in 2021 include China ($66.8 million), Indonesia ($6.76 million), the United States ($3.65 million) and Ethiopia (3.52 million.) The fastest growing export markets for petroleum coke of Oman between 2020 and 2021 were India ($82.4 million), China ($54.9 million) and Indonesia ($6.76 million).
“India, especially its west coast, is a natural market for Omani coke because of its very short voyage of 3-4 days. OQ's Orpic refinery in Suhar, which produces 300,000-350,000 tonnes per year of anode-grade coke, has sold off-specification coke cargoes to Indian cement makers in the past for use in kilns. Duqm is expected to produce around 500,000-600,000 t/yr of high-sulphur fuel-grade coke. Indian cement makers may be keen on buying Omani coke because of its short voyage, said another participant,” the report added.
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