Naphtha exports from India’s Essar Oil are to decline by end of December. This will happen when a new fluidised catalytic cracker unit at Essar’s Vadinar refinery is on stream and the plant is operating at full capacity. Naphtha will be replaced with petrol and diesel, once the cracker comes on stream. This switch will be made as Essar plans to focus on higher value products, unlike the market for naphtha.
Essar currently exports around five 30,000 ton naphtha cargoes every 60 days, but commissioning the FCC unit is likely to trim that to around one cargo every 45 days.