Surplus naphtha to find its way into Asian markets in Oct-December

04-Sep-09

A delay in start up of an aromatics complex by Kuwait Petroleum Corp is apparent as it has offered 50,000 tons of naphtha for mid-October lifting. Additionally, about 400,000 tons of Middle Eastern and Indian naphtha will also find its way into Asian markets. This naphtha was for consumption by Haldia Petrochemicals that will shut for two and a half months its sole 520,000 tpa naphtha cracking complex from mid-October for 30% capacity hike. Hence, 300,000 tons of imported naphtha and 100,000 tons of domestic supply will flood Asian markets. Of the 300,000 tons of imported naphtha, 200,000 tons is through term supplies and about 100,000 tons is by spot purchases. The company will resume imports from end-December or early January. About 30,000 tons/month of naphtha procured from Indian Oil Corp (IOC) will also find its way into the Asian markets. Haldia Petrochemicals has term contracts with Kuwait, which supplies the firm with 700,000 tpa of naphtha and Abu Dhabi and Bahrain which supply a total of 200,000-250,000 tpa.