ONGC's naphtha supply to OPaL reduces scope of exports from Hazira

10-Feb-17

India's Oil and Natural Corp (ONGC) will not export naphtha from Hazira most will be consumed as fuel by a cracker operated by ONGC Petro additions Ltd (OPaL), as per sources in Reuters. OPaL, promoted by ONGC and co-promoted by Gujarat State Petroleum Corp (GSPC) and GAIL (India) Ltd, operates a cracker which has a capacity of 1.1 mln tpa of ethylene.

"We are supplying all of the naphtha to OPaL ... we will export if our laycans do not match with that of OPaL's," said a company source, adding that OPal is working out its strategy to source some quantity from the market as well. Production at OPaL has recently been ramped up to full capacity, hence ONGC's exports have seen a pause this year. ONGC Hazira was exporting one to two 34,500 ton cargoes a month in 2016 but this stopped this year, based on Reuters data.