In a market report the shipbroker highlighted the imminent reopening of Monroe Energy’s Trainer, Pennsylvania refinery, which the Delta Airlines subsidiary purchased from ConocoPhillips following a closure in September of last year.
“Monroe has subjected Trainer to a major turnaround beginning in early July in order to increase the refinery’s jet fuel yield, suiting its airline parent company’s needs,” it said, adding: “The restart is potentially a positive development for the Atlantic crude tanker market as USAC crude imports may increase.”
SSY believes the Trainer reactivation and a deal to save a neighboring refinery in Philadelphia has “undermined a positive outlook” for the medium-range (MR) product tanker market, however, which was “envisaged when it looked likely that the two plants would close as part of a wider UASC refinery rationalization”.
“Seaborne product imports into the region were expected to increase to make up a shortfall exacerbated by the possible closures,” the broker explained. “An expansion of the Colonial distillate pipeline from the USG to the UASC as well as higher coastal shipments has also limited the need for increased overseas imports into the region.”
When the facilities first closed a researcher from US tanker brokerage MJLF estimated product tanker demand would expandby more than 27 (MR), 13 long-range-two (LR2) and four long-range-one (LR1) carriers if the pants were shut for good.
