IOC seeks 70% more naphtha than purchased for 12 month period ending March 2010

26-Feb-10

Indian Oil Corp (IOC) is seeking 370,000 tons of naphtha by tender for April 2010-March 2011 delivery to Goa and Mangalore ports- about 70% more than it’s bought for the 12 month period ending March 2010 as per Reuters. The new tender closes on March 8, with offers to stay valid until March 10. In March 2009, IOC bought a total of 216,000 tons of naphtha for April 2009-March 2010 delivery from Emirates National Oil Co (ENOC) at a premium of US$55/ton on a cost-and-freight basis. IOC is seeking up to 216,000 tons for the 12 month period, or 10 cargoes at 18,000 tons each month, with two optional cargoes, for delivery to Goa port; and up to 154,000 tons for April 2010-March 2011, or 9 cargoes at 14,000 tons each, with two more parcels on an optional basis, to be delivered to Mangalore. The purchases coincide with healthy demand from petrochemicals makers in South Korea, Japan and Taiwan that has elevated naphtha cracks to a 3 week high at US$147/ton premium.