Owing to a week long close down of Petronet LNG's 5 mln tpa liquefied natural gas plant in mid-October, state owned Indian Oil Corp (IOC) will not engage in naphtha spot exports for October lifting. This cut in naphtha spot exports is the third consecutive cut after IOC announced the same in August and September spot exports due to maintenance shut down of its Panipat and Koyali refineries.
Usually, the monthly exports of IOC's spot and term naphtha amount to 180,000 tons from Dahej and Kandla. IOC's decision comes as the domestic fertilizers and small industries which generally rely on LNG are expected to switch to naphtha as their feedstock. So, the cut in exports will fuel the domestic demand for such units.