Qatar signs 10 year naphtha supply deal with Thailand's SCG Chemicals

24-Apr-19

Qatar's state-owned QP has signed a 10-year agreement to supply a total of 3 mln tons of light naphtha to Thailand's SCG Chemicals, as per Argus Media. QP will start supplying the naphtha to SCG this month.

Qatar has been tying its naphtha yield to direct long-term contracts with established naphtha consumers in Asia. This agreement follows similar deals signed with Vietnam's Long Son Petrochemicals, a joint-venture between state-owned PetroVietnam and Siam Cement, and with Japan's Marubeni. QP also has an agreement to supply India's Haldia Petrochemicals (HPL) with about 600,000 tons of paraffinic naphtha over 2018-21.

SCG Chemicals manufactures and supplies a range of petrochemical products ranging from upstream monomers to downstream polymers, including polyethylene, polypropylene, polyvinyl chloride, polystyrene and MMA. SCG has been securing a steady supply of naphtha from the Mideast Gulf and signed a long-term contract in 2018 to buy naphtha from Abu Dhabi's state-owned Adnoc.