Gasoline from New York, Europe en route to Montreal: sources

New York (Platts)--2Mar2007

Tankers carrying unleaded gasoline from New York and Europe continue
making deliveries to Montreal to cover a supply shortfall, market sources said
Friday.

As many as five clean tankers were en route to Montreal from Europe and
an undetermined number from New York, buttressing the normal flow of gasoline
from Europe, a vessel owner source said. The tankers are each to deliver about
30,000mt of gasoline.

We are getting more than the normal amount of gasoline now," a supplier
source in Montreal said. "We are playing catchup."

Imperial Oil, Petro-Canada, Shell and Valero's Ultramar operate oil
refineries and service stations selling gasoline and diesel in Quebec.

Petro-Canada spokesman Jon Hamilton said the company has increased its
imports of gasoline and distillates from Europe to Montreal following the
closure of its Oakville refinery in Ontario in 2005. He agreed it was possible
the company had increased the volume of gasoline deliveries from Europe in
recent weeks to deal with the shortage but had no details. Hamilton said he
was unaware of deliveries from New York.

The shortage is mainly the result of production problems last month at
Shell's 130,000 b/d Montreal East refinery last month and a rail strike,
sources agreed.

"Minor equipment problems" at the refinery have been resolved "and we are
back to full production," said Shell spokeswoman Simone Marler.

--Xavier A Cronin, xavier_cronin@platts.com
--Esa Ramasamy, esa_ramasamy@platts.com