Syria is struggling to secure crude and refined oil products through public tenders because shipowners remain cautious about sending vessels there in case they are detained, traders say.
Syria's transitional government issued tenders seeking 4.2mn bl of crude, 80,000t of 90 Ron gasoline and 100,000t each of fuel oil and gasoil last month — the first since the fall of Bashar al-Assad's regime in December last year.
The tenders closed earlier this month after minimal participation from trading firms and were mostly awarded to local companies which will effectively act as intermediaries, market participants said. Market participants have hinted to Argus that small and medium-sized Turkish firms were likely on the list of bidders.
But the delivery of the cargoes is under threat, with shipping companies avoiding the route over concerns about tankers being "sanctioned or stranded". Last month the US waived sanctions prohibiting energy trade with Syria, but the country is still under EU and UK sanctions, which could have narrowed the pool for bidding, although EU foreign ministers have agreed on a roadmap to ease restrictions.
The bidding pool was also limited by a clause in the tender document that noted "the seller should not have any direct or indirect trade relations with any country that is in war with Syria", a market source said, adding that this could have discouraged some companies from taking part.
Before Assad's removal, Syria relied heavily on Iran for crude and product supplies. But Tehran — the Assad regime's closest ally — ceased shipments after the Islamist group Hayat Tahrir al-Sham took control last month, leaving the new transitional government under pressure to find alternative suppliers.
Neighbouring Arab countries are stepping in to help the new government deal with acute fuel shortages. State-owned Jordan Petroleum Refinery Company has begun exporting around 500 t/d of LPG to Syria. The ministry also issued two LPG import tenders seeking a total of 86,000t, but the winner has not been confirmed
