Kuwait’s IPG buys jet fuel from state-owned KPC in rare move

Kuwait-based trading firm Independent Petroleum Group bought a jet fuel cargo for loading in July from state-owned Kuwait Petroleum Corp in a rare move, traders said.

IPG bought 60,000 tonnes of the aviation fuel from KPC for loading over July 17 to 20 at a premium of between $1.70 and $1.75 a barrel over Middle East quotes, the traders said.

This is the first time in several years that IPG has bought jet fuel from KPC, they added. IPG usually trades in gasoil and only occasionally trades in jet fuel which is then used to co-load with gasoil cargoes, one of them said.

It is not clear what IPG was planning to do with this cargo. IPG officials declined to comment on the matter.

IPG has business in the Red Sea, Arabian Gulf, east Mediterranean and East Africa, and plans to expand in the Mediterranean, Indian subcontinent and the Far East, according to the company website.

In the same tender, KPC sold another 60,000-tonne jet fuel cargo for the same loading dates to Shell at a premium of between $1.80 and $1.85 a barrel to Middle East quotes, industry sources said.