Global commodities trader Glencore has won a tender to supply crude oil to Prax’s 113,000-barrel per day Lindsey oil refinery in Britain, replacing rival trader Trafigura, according to three sources familiar with the deal.
The deal bolsters Glencore’s oil trading operation and follows the recent joint acquisition of Shell’s Singapore refinery and petrochemical assets with Chandra Asri.
UK-based independent oil company Prax, which owns the Lindsey refinery, selected the most “commercially advantageous offer” in a tender process that started in the fourth quarter of last year, according to a statement issued to Reuters. However, the company declined to disclose details of the agreement, including the winner.
The sources, who spoke on the condition of anonymity as the information is not public, confirmed that Glencore had won the tender to supply crude oil to the Lindsey refinery, replacing Trafigura as the supplier.
The Lindsey refinery, located in Lincolnshire, England, has a capacity of 113,000 barrels per day and is one of the largest refineries in the UK. The new supply agreement with Glencore is expected to strengthen the company’s position in the European oil market.
Glencore has been expanding its oil trading business in recent years, with the acquisition of Shell’s assets in Singapore being a significant move. The deal to supply crude to the Lindsey refinery further solidifies the company’s presence in the UK’s energy market.