Asian condensate markets to come under pressure as Indonesia's TPPI extends shutdown until May

20-Mar-08

In a move likely to pressure the regional condensates market, Indonesia's Trans Pacific Petrochemical Indotama (TPPI) plans to extend the shutdown at its complex until May. The complex has been closed since late-February due to port problems. The petrochemical firm declared force majeure due to breaches in the breakwater wall, halting deliveries of condensate and naphtha, as well as loadings of petrochemical and oil products. Rough weather caused the breaches in the breakwater wall that protects the plant from the sea and prevented cargoes from entering the port safely to discharge and load from the refinery. The prolonged closure would result in extra spot condensate available for sales. TPPI also imports naphtha, but the impact on demnad is expected to be limited as the naphtha market is driven largely by North Asian demand.