Supply disruption eases- ONGC resumes naphtha exports from Hazira

24-Jul-14

After recently cancelling sale due to a supply disruption at its western India production complex, India's Oil and Natural Gas Corp (ONGC) has resumed exports from Hazira and sold a naphtha cargo for Aug. 9-10 loading, as per traders in Reuters. The 35,000 ton cargo was sold to Vitol at a premium of about US$31/ton to Middle East quotes on a free-on-board (FOB) basis. This reflected a price increase of more than 25% when compared with its most recent sale of a July 20-21 cargo loading from Hazira to Mercuria. Naphtha premiums have been recovering recently due to tight prompt supplies caused by a string of ongoing and recent maintenance and outages in India which had dented its exports to Asia. ONGC was initially planning to sell the cargo for the same loading date on July 11 but a pipeline supplying gas to the Hazira complex was shut.