1.4 Bunker Market

ANCAP's direct participation in the bunkers business is due to the wholesale of maritime and aviation products to ships and aircrafts of national and foreign flag. For clients of national flag, the sale is made complying with the conditions of the monopoly of the internal market, while for clients of foreign flag the commercialization is with competition depending on the quality, price, and availability with regional ports and airports.

Within these conditions, the total commercialization of bunker products showed a decrease in the year 2015, with regard to the year 2014.

In this market, the products that grew were aviation products, mainly foreign-flag Jet A1, due to the activity on the market of the Iberia Airline since September 2014 and the renewal of the supply in the year 2015. At the same time the prices of the Jet A1 have maintained competitive levels with Argentina and Brazil. The competitive prices of the region and the constraints of availability of the product have led to a decrease in the sales of Marine Gas Oil of approximately 10% and a fall in the sales of about 22% in Foreign-flag Intermediate Fuel Oil in 2015 with regard to the sales of 2014, reaching lower sales levels than in previous years.

The availability of products that are not intended for the Internal Market is aimed at enhancing the management to provide for the bunkers market, as well as the Free Zone market, where the pulp mills UPM and Montes del Plata are operating.

In the year 2015, ANCAP was awarded the tender for the supply of Montes del Plata, which would enable it to supply the two pulp mills that are currently operating in Uruguay. Negotiations have started to reach an agreement to supply UPM and Montes del Plata again for the year 2016.