Trafigura ties up with SK Chemicals

European trader Trafigura has sealed a US$48 million contract with SK Chemicals to lift 60,000 tons of biodiesel from the South Korean petrochemical firm next year, top executives of the two companies said. The petrochemical company has just completed the upgrade of its Ulsan biodiesel plant’s capacity by three times to 120,000 tons per year (tpy). Asia, the biggest biodiesel market for Trafigura after Europe, has an installed capacity of 4 million tpy, and exports around 500,000 tpy of biodiesel, said company director Tom O’Brien. He sees growing demand in Asia for biofuels, as state regulations for using the alternative fuel in parts of the region kick in, making it crucial for Trafigura to have a structured source of supply. (August 20, 2009)