Significant rise in import of Venezuelan petcoke by Indian cement companies: Report

After gas and crude oil, coal prices are on fire owing to the growing demand for the black fuel in the aftermath of the sanctions on Russia by the US and European nations for invading Ukraine.

Petcoke is a byproduct of oil upgrading and it is the first time Indian companies are importing the fuel from the South American nation.

Venezuela's petrochemicals and oil byproducts are more competitively priced than traditional suppliers. Taking advantage of the growing fuel demand, the country has increased its exports.

Earlier, India depended on the United States and Saudi Arabia for petroleum coke imports.

However, Indian cement companies imported at least four cargoes carrying 160,000 tonnes of petroleum coke from April to June, Reuters reported, citing three trade sources, Refinitiv shiptracking data and Venezuelan shipping schedules.

Another 50,000-tonne cargo is expected to reach the port of Mangalore in the coming days while a 30,000-tonne shipment is scheduled to depart later in August, the data showed, stated the report.

India received its first ever cargo from Venezuela at the beginning of 2022, according to two of the sources and the documents, said the report.

The major importers of Venezuelan petcoke include JSW Cement, Ramco Cements Ltd and Orient Cement Ltd, according to the Reuters report.

Petcoke is more expensive than coal but a ton of petcoke produces more heat than the same quantity of coal. Its use as a fuel is avoided owing to toxic emissions.

But it is widely used in the cement industry as the sulphur dioxide emission is absorbed by limestone used in cement production.