Oil and Natural Gas Corp. Ltd. (ONGC) has declared force majeure on naphtha delivery from Hazira, due to heavy rain and floods. It is not clear whether the flood affected ONGC naphtha production units or loading ports. The supply disruption could affect three naphtha cargoes originally scheduled to be delivered in August. ONGC was to load one cargo sold to Malaysia's Petronas of 35,000 tons on Aug. 15-16 from Hazira. ONGC has sold a 35,000-tonne naphtha cargo to Vitol for loading on Aug 10-12 from Mumbai. ONGC has also cancelled its two tenders, in which it offered a total 70,000 tons for loading on Aug. 26-27 and Sept. 6-7 from Hazira.
Impact on the market is expected to be limited as the market is already oversupplied. Closure of ONGC has been accompanied by the closure of naphtha-consuming units in India because of flooding, as Reliance Industries Ltd. has been forced to shut some plants at its Hazira petrochemicals complex. Indian Petrochemicals Corp. Ltd. has also shut some plants at its complex in Baroda due to heavy rains and a lack of gas supplies from ONGC .
11-Aug-06 
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