Commodities trader Glencore has reportedly clinched a crude supply deal for Prax’s Lindsey oil refinery in the UK.
According to multiple sources cited by Reuters, Glencore will replace rival Trafigura by moving crude into the 113,000 barrel per day plant off Lincolnshire, eastern England.
Independent oil company Prax selected the most “commercially advantageous offer” in a tender process that began in the fourth quarter of last year, according to a statement issued to Reuters.
The company has not given details of the contract.
Glencore and Trafigura declined to comment.
Trafigura announced its exclusive deal in 2021, but gave no details of the volumes involved.
A corporate filing uploaded in March to a UK government website listed Prax as “buyer” and Glencore Energy UK as the “seller”.
This suggests the outline of a deal has been in the pipeline for months.
13 offers
Prax said it received 13 offers during the tender process.
The Lindsey oil refinery — one of six in the UK — supplies petrol, diesel and jet fuel to domestic buyers.
Refinery margins have been under pressure for months, making crude purchasing harder to finance.
Major traders can offer funding solutions on more favourable terms than are available to smaller independents.
