/Reuters Agency
India has for the first time exported a shipment of jet fuel to the U.S. West Coast for energy company Chevron, according to trade sources and shipping data, capitalizing on a rare arbitrage opportunity to cover a supply shortage in Los Angeles.
Jet fuel production on the U.S. West Coast has been reduced since October, following a fire at Chevron’s 285,000-barrel-per-day El Segundo refinery in Southern California, which forced the company to shut down several units.
About 60,000 metric tons (472,800 barrels) of jet fuel were loaded onto the vessel Hafnia Kallang between October 28 and 29 from the Port of Jamnagar, where Reliance Industries operates a refinery, according to data from Kpler, LSEG and four trade sources.
Castleton Commodities chartered the ship, which is expected to arrive in Los Angeles during the first half of December, according to several shipbrokers.
Chevron declined to comment on commercial matters, but noted that it expects to complete repairs to its jet fuel production unit at El Segundo in early 2026.
Jet fuel supply on the U.S. West Coast could remain limited until the repairs at El Segundo are completed, according to two trade sources.
“Chevron remains focused on supplying its customers worldwide, including those supplied by the El Segundo refinery, and may use local or imported products to do so,” the company said in a statement.
However, traders said the U.S. West Coast is unlikely to receive frequent imports from India, as shipments from Northeast Asia are cheaper.
Shipping costs for about 40,000 metric tons of refined fuels from South Korea to the U.S. West Coast have remained stable at around $40 per ton since October, according to SSY price data.
Spot shipping rates between India and the U.S. West Coast are not usually readily available, as the route is less common.
Last month, jet fuel exports from Northeast Asia to the U.S. West Coast reached a five-month high, with about 600,000 tons, according to Kpler vessel tracking data.
The arbitrage economics have remained favorable, with U.S. West Coast jet fuel prices being $10 per barrel above the Singapore free-on-board spot price, the Asian benchmark.
U.S. West Coast jet fuel inventories hit a three-month low, at 11.12 million barrels on November 7.
