Lukoil sees Reliance gasoline flow to Europe

By Simon Webb

DOHA (Reuters) - Indian gasoline could soon reach Europe as the impact of a giant new refinery ripples across continents, the head of the trading arm of Russian oil giant LUKOIL said on Tuesday.

Reliance will bring online its 580,000 barrels per day refinery in Jamnagar later this year.

Gasoline exports from the refinery should meet a growing shortage in the Gulf region, but Reliance will have to look even further afield to find markets for all of the new supplies said Gati Al-Jebouri, chief executive of LUKOIL trading unit Litasco.

"I would say one or two 60,000 tonne cargoes per month could go to Europe," Jebouri told Reuters on the sidelines of an energy conference.

"The overspill will make life a bit more difficult in Europe, where gasoline demand is not that great. So prices could weaken."

Litasco may look to trade the cargoes itself, selling them into its supply deals, Jebouri added. Reliance has already said it will target Europe's diesel market.

Jebouri declined to say when LUKOIL, Russia's second largest oil producer, would restart crude supplies to Germany.

LUKOIL has pumped no crude to Germany for three months through the Druzhba pipeline as it puts pressure on Sunimex, the company that imports the Russian oil to Germany.