Qatar to slash condensate exports by Oct 2016 as new Ras Laffan splitter starts trial runs

09-Jun-16

Qatar will double its capacity for processing condensate by almost 150,000 bpd in August when trials begin on a new splitter at the Ras Laffan refinery with commercial production starting by October. Condensate exports from Qatar will drop from the current 500,000 bpd to about 350,000 bpd when the 146,000 bpd splitter starts operating, as per an official, who declined to be named, as per Reuters. Qatari condensate exports have been facing competition from U.S. and Iranian light oil shipments but the splitter should help the Gulf state soak up some of its condensate at home.
"Overall, there should be less condensate supply in August, but it would still be enough for everyone considering how long the market was in July," a Singapore-based trader said. Output of full-range naphtha will double with the start of the new condensate splitter, Ibrahim Al Sulaiti, marketing director of condensate at Tasweeq said in 2014. Part of this would then be used as feedstock for new gasoline and aromatics units that are set to come online in late 2017. The Qatari unit's start-up will increase Middle East naphtha exports to Asia, which is already struggling with a stubborn supply glut and tepid demand from gasoline producers.