Aramco Trading, Klesch Group agree on feedstock supply

Aramco Trading Company has signed an agreement with international industrial commodities conglomerate Klesch Group for the exclusive supply of feedstocks for its Kalundborg refinery in Denmark, the companies said in a statement.  

Under this transaction, Aramco Trading Company (ATC) will exclusively supply 110MBD of crude with a trading opportunity for Arabian crude placement and third-party crude and condensate and with a provision for refined products offtake.

“I am delighted to note that this transaction will give ATC (Aramco) direct access to the refining system in Europe. Hence, this will also pave the way for creating a framework that will allow similar transactions in Europe and other parts of the energy map,” Ibrahim Al Buainain, President and CEO of Aramco Trading, said in a statement on Tuesday.

Aramco said the deal allows it to have a strategic footprint in the refining business in North-West Europe (NWE) which is a fast-growing and under-served market.

Klesch Group completed the acquisition of Equinor Refining in Denmark on December 31. The refinery includes a terminal in the northwest of Zealand, the Hedehusene terminal near Copenhagen, as well as associated infrastructure and industrial property.