A part of the Butinge Terminal, damaged by a tanker collision in December 2005, will be completely replaced, a process will take 10 to 14 days Mazeikiu said.
Our view:
The shutdown of Butinge was already expected therefore should not arise any major reaction on the market. Butinge is now the only source available for crude imports to Mazeikiu, after Druzhba pipeline was shut down. According to the company there is enough crude-oil stockpiled to keep its refinery running during the repairs, however, utilization rate will be lower than in August, in our view.