Crackers typically replace a portion of naphtha with LPG when the latter is about 93% of naphtha prices or when it is at least $50 a tonne cheaper than naphtha.
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Typically, Asian ethylene makers will make the partial switch to LPG from naphtha provided LPG is about 93 percent of the naphtha price or at least $50 a tonne cheaper than naphtha.
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Naphtha crackers can replace up to 15 percent of their naphtha with LPG when the economics work.
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Falling margins in the petrochemical industry which uses naphtha as a feedstock were also weighing on naphtha margins.
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South Korea alone, which is Asia's top naphtha importer by country, imports more than 1.2 million tonnes of naphtha a month.
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However, increased LPG purchases would likely mitigate the impact on naphtha markets from possible naphtha shipment delays from Qatar following a splitter outage.
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Asia's top naphtha importer concluded the tender discussions to buy about 100,000 tonnes of open-specification naphtha for arrival in the first half of October at Mailiao, where it operates three naphtha crackers with total capacity of 2.93 million tonnes of ethylene per year.
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The traders estimate that some 300,000 tonnes of LPG is expected to replace naphtha in May, or around 7 percent of North Asia's naphtha demand.
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Naphtha prices have been recovering due to strong demand, as the high cost of liquefied petroleum gas (LPG) prices prompted buyers to use more naphtha.
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In its naphtha tender, Rosneft will offers buyers up to 180,000 tonnes of naphtha loading from the ports of Nakhodka or Vostochniy in September-December.
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Traders had expected high prices for crude oil, used as a feedstock for making naphtha, to curb appetite for naphtha, but demand has remained robust.
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One naphtha trader, asked for the reason behind the weakness in naphtha cracks globally, said: "Demand, demand, demand - and peak cracker turnarounds are not helping".
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Unlike Propane Dehydrogenation Plants (PDH), which rely on propane to make propylene, a building block for plastics, Asian naphtha crackers can choose between naphtha and LPG.
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Formosa, Asia's top naphtha importer, also operates three naphtha crackers which have a total capacity of 2.93 million tonnes per year of ethylene, a building block for plastics.
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Asian petrochemical makers usually replace up to 2800 percent of their naphtha with LPG when prices for the second feedstock are about 2000-21 percent of the naphtha price.
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Asia's naphtha strength could last at least another month as the switching away from LPG is occurring at the same time less naphtha is set to arrive from Europe.
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"Asia will need about 1.4 million tonnes of naphtha from the West in May but this will drop to 800,000 tonnes in June," said a trader who tracks naphtha and LPG.
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"Our view is that the Asian naphtha market will continue to recover towards the end of this year," said Chew, adding that naphtha demand was also seasonally stronger during the year-end.
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Meanwhile, the U.S. ships large amounts of naphtha to Venezuela.
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This leads to limited demand for naphtha as a blendstock.
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Splitters process condensate to obtain mainly naphtha for petrochemical production.
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Asia's naphtha supply from the west had remained high despite lower demand caused by ongoing cracker maintenance, outages at plants in Taiwan and Japan and an extended shutdown at a naphtha cracker in South Korea.
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"Gasoline and naphtha cracks are weak," one of the respondents said.
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The Front Altair is carrying naphtha and the Kokuka Courageous methanol.
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It was later designated as PDVSA's main hub for naphtha imports.
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Asia's naphtha market has been persistently weak due to ample supplies.
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The average LPG prices in 2020 are expected to be more than $100 a tonne lower than naphtha compared to $70 to $80 this year, said Gupta, and as LPG pressures naphtha, that would affect gasoline.
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SINGAPORE, Aug 23 (Reuters) - Shipments of naphtha from the West, including Europe and the Mediterranean, to Asia in September are forecast to exceed Asian demand amid maintenance at naphtha crackers and as petrochemical producers use alternative feedstocks.
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The naphtha cannot be processed further at teapots' facilities, four sources said.
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Earlier reports had said the tanker was carrying 75,000 tonnes of naphtha.
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Light naphtha will be consumed by Lotte Chemical for its petrochemical production.
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Still, petrochemical plants will likely return to using mostly naphtha from August.
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Condensate is processed at splitters to produce mainly naphtha, a petrochemical feedstock.
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It also bought at least 120,000 tonnes of European naphtha for Nov.
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PDVSA accumulated pending invoices on its imports, including naphtha, in November-December.
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Petrobras sells 7 million tonnes of naphtha to Braskem annually, Musa said.
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"If naphtha does not find enough outlet in chemical production, refiners will start blending it into gasoline," he said, adding that condensate splitters margins will not be spared as some 40%-50% of these units' yield is naphtha.
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The extra supplies have reversed an upswing in spot premiums paid for naphtha.
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Naphtha is used in Venezuela to dilute its extra heavy oil for export.
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LPG can replace at least 5 percent of naphtha in some Asian crackers.
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PDVSA also is considering diverting tankers carrying imported naphtha to Puerto la Cruz.
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The explosion, which began at Lotte Chemical's naphtha cracker at around 3 a.m.
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NAF-SIN-CRK This month, Taiwan's Formosa Petrochemical Corp, Asia's top naphtha importer, and Chandra Asri, which operates Indonesia's only steam cracker, are down for maintenance until late September, reducing regional naphtha demand by at least 4503,000 tonnes next month.
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Naphtha and kerosene make up the remaining 900,000 tonnes for the fourth quarter quota.
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Naphtha demand will decline at least 200,000 tonnes in March because of the maintenance.
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But Macintosh used a gasoline-like liquid called naphtha to dissolve the solid rubber.
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PDVSA also imports about 100,000 bpd of naphtha for diluting its extra heavy oil.
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Naphtha margins quadrupled in October while spot premiums have hit the highest since 2013.
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Reliance has booked the 500,000-barrel tanker Albiani to ship naphtha from northwest Europe.
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It imports naphtha to dilute Venezuela's extraheavy oil and turn it into exportable grades.
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Haldia Petrochemicals buys naphtha from Kuwait Petroleum Corp (KPC) and Indian Oil Corp (IOC).
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Naphtha faces growing competition from propane and ethane linked to the U.S. shale boom.
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PDVSA would likely make cash calls to ask partners to pay for the naphtha.
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The document also showed PDVSA had reduced its deficit of naphtha - a light oil product that it uses to dilute its crude - to 46,300 bpd, down from 70,700 last month, as the functioning upgraders boosted the rates at which they recovered used naphtha.
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But after recent expansion it is estimated to annually export about 250,000 tonnes of naphtha.
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Iran's Persian Gulf Star Refinery converts light crude, known as condensate, into gasoline and naphtha.
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So far, the most affected crudes are blends formulated with naphtha and other imported diluents.
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There were no shipments of crude oil, jet fuel, fuel oil and naphtha last month.
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Condensate is an ultra light oil processed at splitters, typically to produce naphtha for petrochemicals.
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The rules also cover other products such as aviation fuel, naphtha, lubricants and fuel oil.
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Prices for naphtha spot cargoes for sale to South Korea flipped to premiums on Jan.
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The refinery produced liquefied petroleum gas, gasoline, diesel, asphalt and jet fuel, and exported naphtha.
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"Constraints on naphtha supply should ease as we move past maintenance season," said Dei-Michei.
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Motiva restarted the 115,000-bpd naphtha hydrotreater at the refinery on Thursday, the sources said.
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The barges contained soybean oil, lube oil, naphtha and monoethylene glycol, the Coast Guard said.
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"We import a lot of naphtha and fuel products," said Mazighi Ahmed, a Sonatrach executive.
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No change to text.) By Seng Li Peng and Nidhi Verma SINGAPORE/NEW DELHI, Feb 19 (Reuters) - Taiwan's CPC Corp has offered to sell naphtha cargoes, industry sources said on Tuesday, a rare move by a company which is normally a buyer of naphtha.
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"The project will be ready in 2021 and then we may not export naphtha," Surana said.
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The company also benefited from the falling price of key feedstock naphtha in Europe and China.
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Each month it handles around 300,000 to 350,000 tonnes of oil products, mainly naphtha and diesel.
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NAPHTHA NAF-C-NWE * Trafigura sold a cif NWE cargo to BP at $619 a tonne.
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BPCL has made the pricing changes in its latest naphtha tender, which closes on May 16.
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It is integrated with a 800,000 tonne-per-year (tpy) naphtha cracker and other petrochemical units.
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Once operating fully it will produce diesel, naphtha, liquefied petroleum gas, jet fuel and petroleum coke.
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NAPHTHA NAF-C-NWE * BASF sold a cargo to BASF at $633 a tonne cif NWE.
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The board said the fire began in piping next to a 80,000-barrel tank containing naphtha.
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Petrochemical plants mainly run on light oil products such as naphtha and liquefied petroleum gas (LPG).
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Rystad Energy forecasts that some operators in Venezuela will run out of naphtha by this month.
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He said the sell-off in naphtha prices had been brewing for a couple of months.
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|
A 1.2-million-tonnes-per-year naphtha cracker at the site started trial runs this month.
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Earlier reports had said the tanker was carrying 75,000 tonnes of naphtha, a flammable liquid hydrocarbon.
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|
In addition to the 22,210-bpd VPS-22012 CDU, Motiva plans to shut the naphtha processing complex, which includes the 25,22012-bpd naphtha hydrotreating unit 22012 (NHTU53), 25,22017-bpd catalytic reformer 25 (CRU 5) and 50,000-bpd isomerization unit for the work, scheduled to finish by Nov.
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He did not say how much naphtha Petrobras currently supplies nor gave details of the planned contract.
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"You're seeing higher naphtha cuts and higher jet production," said Robert Campbell, an analyst with Energy Aspects.
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Crude oil, condensate, naphtha, base and extract oils are stored at the facility, according to the company.
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Previously, the Dahej and Nagothane plants were running on gas, while Hazira was using naphtha as feedstock.
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Firefighters were seeking to drain naphtha from one of the tanks to deprive the fire of fuel.
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|
When FCCU 3 was shut in late June the key naphtha desulfurization unit (NDU) was also shut.
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Gasoline and naphtha account for about 40 percent of Mongstad's output, according to the company's annual reports.
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The Asian naphtha crack for instance at $37.60 a tonne on Wednesday was the lowest since Feb.
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|
Energy industry intelligence service Genscape reported on Tuesday that the refinery had shut down a naphtha hydrotreater.
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|
The naphtha had been delivered to LG Chem in the second half of March, according to Song.
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|
A310 is a naphtha grade that comes from Ras Tanura where Saudi Aramco operates a condensate splitter.
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A specialist team will inspect the Front Altair before deciding on how to unload its naphtha cargo.
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|
Sanctions cut imports of naphtha, and Venezuela's ailing refineries struggle to produce enough of its own supplies.
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|
Although Saudi Arabia's monthly naphtha exports between January to August at about 327,000 tonnes is not even half of United Arab Emirates' at 1 million tonnes, based on data from Refinitiv Oil Research, any production lost in Saudi would impact Asia since it is structurally short of naphtha.
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Naphtha derived from refining crude oil is most often used to create reformates which boost octane in gasoline.
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|
The second rounds of the tenders for gasoline and naphtha close on July, 26 and July, 29, respectively.
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|
BPCL regularly exports naphtha and fuel oil due to excess volumes, but only ships diesel on rare ocassions.
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|
The Caracas-based company has been increasingly importing naphtha and crude to dilute oil produced in the Orinoco.
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|
In Singapore, inventories of light distillates, which include gasoline and naphtha, did rise in the week ended Oct.
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|
Tanks containing naphtha and xylene, petrochemicals used to make gasoline and were burning early Monday, ITC officials said.
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|
But in Europe, demand was healthy and naphtha cracker margins in the region decreased the least in 2018.
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U.S. refiners rely on cokers to break down residual oils into other refined products, including gasoil and naphtha.
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South Korea mainly imports Iranian condensate, an ultra-light oil used to produce more expensive fuels like naphtha.
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Naphtha is a petroleum product resulting from the distillation of natural gas or crude oil, the library says.
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|
Oil and gas drilling yields byproducts like ethane and naphtha, which are used to make plastics and chemicals.
|
|
"The naphtha market is very weak at the moment," said Matthew Chew, principal oil analyst at IHS Markit.
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|
The port also receives imports of diluents for PDVSA's extra heavy oil output, such as light crude and naphtha.
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|
The cracker will have the flexibility to use naphtha, gases generated during crude oil processing and kerosene, he said.
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Last October Mongstad sustained an unexpected outage that lasted two weeks when a naphtha leak shut down the plant.
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Asia mostly uses open-specification naphtha, a lighter form of the fuel, while Europe tends to supply heavier grades.
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|
Naphtha is the primary feedstock used by petrochemical manufacturers to make the chemical precursors for plastics and polyester fabrics.
|
|
LPG mix and naphtha are also exported from the terminal via the Vestprosess pipeline to the Mongstad oil terminal.
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|
Platts currently assesses prices on a delivered basis to Japan for oil products such as naphtha, gasoline and kerosene.
|
|
Premiums for Qatari condensate loading in February hit a record, but have since fallen back on weak naphtha margins.
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|
Before U.S. sanctions came into force at the end of January, Washington shipped large amounts of naphtha to Venezuela.
|
|
This week it offered to buy up to five 300,000-barrel cargoes of catalytic naphtha and high-sulfur diesel.
|
|
NAF-SIN-CRK Traders said these developments were largely due to fewer eastbound cargoes of naphtha despite strong demand.
|
|
The IPO proceeds will be used to build a naphtha cracker in Indonesia and expand the cracker in Malaysia.
|
|
Saudi Arabia's naphtha exports in 2019 fell 14.6% from a year earlier to 5.8 million tonnes, JODI data showed.
|
|
In Europe, northwest European naphtha cracks hit their lowest since June 2012 on Thursday at around -$15.41 a barrel.
|
|
The fall in gasoline weighed further on naphtha, which is used as a blending component in the motor fuel.
|
|
Refiners of oil products who also have petrochemical plants have a natural hedge in times of low naphtha prices.
|
|
CPC said the extent of damage to the ship and the volume of naphtha lost was not immediately clear.
|
|
On the products side, gasoline volume rebounded by 30 percent to 44 million tonnes while fuel oil and naphtha declined.
|
|
Exports of diluted crude oil (DCO) made with extra heavy oil and heavy naphtha increased 17 percent compared to March.
|
|
South Korean petrochemicals makers including Lotte Chemical, typically use naphtha derived from crude oil as a feedstock to make ethylene.
|
|
The spread between prices for polyethylene and feedstock naphtha gives an approximation of how much profit petrochemical makers can make.
|
|
Asia is structurally short of naphtha and relies on the West and Middle East to fill most of the gaps.
|
|
Reliance has no plans to convert its naphtha-based cracker at Vadodra in western Gujarat state to ethane, Shah added.
|
|
The seven were exposed to toluene, xylene, naphtha and benzene "causing them severe injuries and damages," according to the lawsuit.
|
|
Bangladesh's sole Eastern Refinery, with a capacity of 33,000 barrels per day, produces 1.26 million barrels of naphtha a year.
|
|
Clearsource, which is already trading middle distillates, is not the only company to expand into the naphtha arena this year.
|
|
Japan's customs-cleared trade data, which started in 1988, showed Japan last imported a naphtha cargo from Iran in October.
|
|
Marubeni, which bought Iranian crude, condensate, naphtha and fuel oil until 2012, confirmed it had been working to restart purchases.
|
|
Rosneft is also lifting 60,000 tonnes of naphtha in a ship-to-ship transfer off Cyprus, Refinitiv Eikon data shows.
|
|
At home, Lotte Chemical runs two naphtha crackers which have a combined ethylene production capacity of 2.2 million tonnes per year.
|
|
Asia is structurally short of naphtha and relies on imports from the Middle East and the West to plug the shortfall.
|
|
Key parts of the refineries requiring a revamp include naphtha hydrotreaters, catalytic reforming units, isomerisation units, diesel sulphurisers and diesel hydrotreaters.
|
|
A source has said a magnetic mine could have caused the explosion on Front Altair, which had a cargo of naphtha.
|
|
Genscape's data put stocks of gasoline, naphtha and blending components at 2.9 million tones, or a 2 percent rise this week.
|
|
The risk of explosion was "minimal" but ITC was attempting to drain naphtha from one of the burning tanks, it said.
|
|
Afterward, as workmen at Gravesend Bay were pumping out the Alva Cape's remaining naphtha, it blew up again, killing four more.
|
|
Bangladesh's sole Eastern Refinery, which has a capacity of 33,000 barrels per day, produces 1.26 million barrels of naphtha a year.
|
|
The refinery is split into several units, including amine regeneration, hydrocracker and hydrotreater, naphtha and aromatics units, utilities and tank farms.
|
|
Aramco also has a deal with Egypt signed earlier this year to take up to 77,000 tonnes of naphtha this month.
|
|
Apart from the European cargoes, Aramco has bought 60,000 tonnes of naphtha from India's Hindustan Petroleum Corp Ltd (HPCL) this week.
|
|
The average import price of naphtha in 2016 was $44.09 a barrel, whereas LPG cost $30.85 a barrel, KNOC data showed.
|
|
The sanctions are having another impact on the Venezuelan oil industry, which gets most of its naphtha from the United States.
|
|
PDVSA received its most recent import of naphtha, supplied by a unit of India's Reliance Industries, at Jose port on Jan.
|
|
India's Reliance and PDVSA's U.S. unit Citgo Petroleum are the main suppliers of naphtha to Venezuela, according to internal PDVSA data.
|
|
PDVSA would partially offset its diluent deficit in the medium term with maintenance at domestic refineries so they can produce more naphtha.
|
|
This is more than 80 percent higher than the total volumes of gasoline, diesel, jet kerosene and naphtha China exported in 2015.
|
|
Asia is expected to receive some 1.3 million tonnes of naphtha from the West next month, four industry sources said on Friday.
|
|
Also, "naphtha demand ... was down 8 percent for 53 as a whole, possibly driven by more LPG use in petrochemicals," it said.
|
|
Reliance's annual naphtha exports will rise by 500,000 tonnes this fiscal year, said Vipul Shah, chief operating officer for petrochemicals at Reliance.
|
|
However, the deal's price depends on a long-term naphtha supply contract with Petroleo Brasileiro SA, which also owns shares in Braskem.
|
|
In April, it discharged only one cargo of imported naphtha, and three more supplied by Rosneft are waiting to discharge in May.
|
|
"That's coming out of oil demand," de Caux said of petrochemicals coming from ethane, rather than from refined naphtha, in petrochemical units.
|
|
The fire began on Sunday when a leaking tank containing volatile naphtha ignited and flames quickly spread to nearby tanks, ITC said.
|
|
The island annually imports some $200 million to$300 million of oil products from the African country, including some purchases of naphtha.
|
|
The use of so-called flexi-crackers would enable the firms to break down a range of feeds - oil, gas or naphtha.
|
|
Trafigura, which stores and transports more than 1 million bpd of oil, supplies naphtha as a diluent for Colombia's heavy crude exports.
|
|
The condensate, or ultra light oil, is typically processed at refining units known as splitters to extract heavy naphtha for aromatics production.
|
|
The crude grades offered include diluted crude oil (DCO), a blend of extra heavy oil and heavy naphtha, according to the sources.
|
|
A pump connected to the piping was left on for several hours beginning the night before to mix butane with the naphtha.
|
|
The Front Altair, loaded with the flammable hydrocarbon mixture naphtha from the United Arab Emirates, radioed for help as it caught fire.
|
|
Steam crackers break down naphtha into petrochemical precursors such as ethylene or propylene that are used to manufacture plastics and other chemicals.
|
|
The splitter processes condensate into naphtha, which is then used to produce paraxylene, a chemical used in making polyester fibre and plastics.
|
|
A planned turnaround at Royal Dutch Shell's Moerdijk petrochemical plant in the Netherlands was also contributing to lower naphtha demand in Europe.
|
|
Chew said a plunge in prices for liquefied petroleum gas (LPG), a competing feedstock fuel, was also putting downward pressure on naphtha.
|
|
Paravaikkarasu said naphtha cracks should receive some relief from the full return of crackers from maintenance later in the northern hemisphere summer.
|
|
The company's purchase helped put a floor under condensate premiums, which have recently come under pressure due to weak naphtha margins, they added.
|
|
A barrel of a Venezuelan DCO made with naphtha is usually sold 15 percent cheaper than a crude blend, a government source confirmed.
|
|
That means Asian naphtha buyers will take up less of a current global surplus, further undermining profit margins for the light oil product.
|
|
The fire broke out on Tuesday afternoon after a line failure caused a treated naphtha leak, prompting an evacuation of the Syncrude site.
|
|
Midstream companies rushed to build condensate splitters, which break light oil into products such as naphtha and unfinished distillates, during the shale boom.
|
|
Globally, the spot prices of certain plastics components like polyethylene and polypropylene are often influenced by pricing of an oil derivative called naphtha.
|
|
Tanks containing naphtha and xylene, petrochemicals used to make gasoline and base oils commonly used as machine lubricants, were burning, ITC officials said.
|
|
Intercontinental Terminals said there is little chance of an explosion, but it's taking precautions by pumping naphtha, which is combustible, out of tanks.
|
|
The fire began Sunday morning in a giant storage tank containing naphtha, a volatile substance used to create octane-boosting components of gasoline.
|
|
A leak in the naphtha storage tank ignited and flames spread to nearby tanks overnight, ITC reported to a Texas regulator on Monday.
|
|
Naphtha is made by oil refineries processing crude, but other petrochemical feedstocks - ethane or liquefied petroleum gas (LPG) - largely bypass the refining industry.
|
|
The payment issues have driven a 34 percent decline this year to 51,350 bpd in imports of naphtha PDVSA uses as a diluent.
|
|
The upgrader will process 80,000 bpd of crude during the maintenance, which will include work on the delayed coking and naphtha hydrotreatment facilities.
|
|
Exports of diluted crude oil (DCO) made with naphtha declined to 106,000 bpd versus 153,700 bpd the previous month, according to the data.
|
|
It said a tanker carrying 1 million barrels of imported naphtha had arrived in Venezuela in late April to help cover the deficit.
|
|
Imports have fallen to some 140,5003 bpd of gasoline, diesel, naphtha and other fuels since the end of January, Refinitiv Eikon data shows.
|
|
A fire that had raged on the Front Altair, which carried a cargo of petrochemical feedstock naphtha, had been extinguished, the owner said.
|
|
Data from Refinitiv Oil Research shows Aramco chartered the vessel British Resolution to transport 2000,000 tonnes of naphtha from Tuapse, Russia, on Sept.
|
|
That came as prices for LPG, a mixture of propane and butane produced as a by-product of U.S. shale gas, undercut naphtha.
|
|
The grade was further boosted by a jump in refining margins for naphtha, a petrochemical feedstock, that hit a near two-year high.
|
|
Gains in naphtha margins could prop up Arab Extra Light's OSP in December by at least 50 cents a barrel, the survey showed.
|
|
Rosneft and Spain's Repsol were the main suppliers of products, including gasoline, diluting naphtha, diesel and liquefied petroleum gas, according to the data.
|
|
Front Altair was carrying 75,000 tonnes of naphtha, a petrochemical feedstock, when it was suspected of being hit by a torpedo, CPC said.
|
|
The fuel could be refined into kerosene and other products, such as diesel for marine transportation and naphtha for use in the chemicals industry.
|
|
Condensate is a byproduct of natural gas production and the oil is processed at refining units to produce mainly naphtha, a petrochemical raw material.
|
|
The Marshall Islands-flagged Front Altair carrying naphtha and the Panama-flagged Kokuka Courageous carrying methanol have been evacuated and the crews are safe.
|
|
Refiners would typically draw about 20 percent of naphtha from a barrel of ESPO after processing versus about 15 percent from an Oman barrel.
|
|
The foreign ministry said the three were exploring the development of a naphtha cracker and petrochemical complex, with a potential value of $6 billion.
|
|
Light distillate inventories, including gasoline and naphtha, in Asia's refining and oil trading hub of Singapore have climbed to a record 17.29 million barrels.
|
|
Seven tanks containing naphtha and xylene, petrochemicals used to make gasoline and base oils commonly used as machine lubricants, were burning, ITC officials said.
|
|
OSLO (Reuters) - Norway's Petroleum Safety Authority (PSA) will investigate a naphtha leak that halted output from Statoil's Mongstad refinery, the watchdog said on Wednesday.
|
|
TOKYO (Reuters) - Japan's Osaka Petrochemical Industries Ltd shut its 500,000-tonne-per-year naphtha cracker on Thursday for maintenance, its parent Mitsui Chemicals said.
|
|
The naphtha cargo, loaded in late January, has arrived in Japan and is from the new Persian Gulf Star Refinery (PGSR), one source added.
|
|
Once its secondary units are commissioned this year, the refinery will cease naphtha exports as the fuel will be channelled to the gasoline pool.
|
|
Based on data from IHS Markit, Saudi's naphtha production is estimated to be 26870,23086 to 150,000 tonnes lower in September/October following the attacks.
|
|
The strategy also involves scaling back exports of a grade known as diluted crude oil, or DCO, made by mixing heavy crude with naphtha.
|
|
About a half of those imports are heavy naphtha, bought by PDVSA to dilute its extra heavy oil output and make it suitable for export.
|
|
The sanctions expressly prohibit sales of diluents (heavy naphtha) to PDVSA, which are used for making the country's extra heavy crude oil ready for export.
|
|
If it cannot import enough naphtha to formulate its oil for export, PDVSA plans to start mixing other domestic fuels to ready oil for export.
|
|
Simpler and less sophisticated than refineries, they convert condensate into unfinished distillates and naphtha, a building block for gasoline that also can dilute heavy crude.
|
|
The other two respondents expect prices to climb by 50 cents and $1 given a rise in refiners' margins for light products - naphtha and gasoline.
|
|
Venezuela's crude is so heavy it must be blended with naphtha, a liquid hydrocarbon mixture used to dilute oil so that it can be transported.
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KUWAIT NATIONAL PETROLEUM CO STARTS OPERATING A NAPHTHA CONVERSION UNIT IN MINA AL-AHMADI REFINERY WITH A PRODUCTION CAPACITY OF 30,000 BPD - STATE NEWS AGENCY
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An internal report seen by Reuters had said planned maintenance in April would sharply increase naphtha imports to 83,000 bpd from 64,500 bpd in March.
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Formosa, Asia's top naphtha importer, has two other larger crackers which have a combined capacity of 2.23 million tpy, both of which are operating normally.
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Rosneft earlier this month asked buyers to use the euro as the default currency in a spot tender to sell naphtha, an official Rosneft document showed.
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Additional petrochemical demand occurs when LPG prices drop to at least $50 a tonne lower than naphtha, a light oil product also consumed by the industry.
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Bruno Nakata, a veteran trader who was formerly head of naphtha in Asia for Trafigura and general manager of Marubeni, could not be reached for comment.
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The March OSP for Arab Extra Light crude could fall by up to 40 cents a barrel after naphtha margins weakened from last month, they said.
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The fire did not have an immediate impact on the market because the naphtha cracker was shut, said a trading source, who declined to be identified.
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Reliance, owner of the world's biggest refining complex and also a leading petrochemicals player, on average exports more than 200,000 tonnes of naphtha in a month.
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Cheaper oil has lowered the cost of naphtha, Braskem's main raw material, opening a profitable spread for its principal business of turning petrochemicals into plastic resins.
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Many power plants and small industries like ceramic, glass and cement makers rely heavily on more expensive or dirtier fuels such as naphtha, diesel and coal.
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The naphtha storage tank ignited first from a leak in a pipe, and flames spread to nearby tanks, ITC reported to a Texas regulator on Monday.
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The most recent cargo of the heavy naphtha PDVSA imports to mix with Venezuelan oil discharged at Jose port in mid-August, according to Reuters data.
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In addition to using substitute condensates, South Korean petrochemical companies, such as Hanwha Total, have also been ramping up imports of cheaper heavy naphtha, they said.
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Asian petrochemical makers typically use crude-oil derived naphtha as a feedstock to produce ethylene and other basic petrochemicals, which are mostly used to make plastics.
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"With this agreement we are implementing a new approach toward our sales of naphtha," said Abdulla Salem al-Dhaheri, ADNOC's director for marketing, sales and trading.
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Chinese end-users are now cancelling or renegotiation their term contracts, taking advantage of product overhangs in the Middle East and a cheaper alternative feedstock, naphtha.
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Although naphtha demand was stronger this week, with several buyers emerging to buy October cargoes, overall demand was weak and supplies were abundant, the sources added.
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Aramco also won a spot tender to buy a 38,000 tonne cargo from Egypt's EGPC for late October loading in Suez, a European naphtha trader said.
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In June last year, a ship chartered by Ocean Energy on behalf of CPC to ship naphtha from United Arab Emirates (UAE) was attacked and damaged.
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Since the attacks, Aramco had swept up 68703,000 tonnes of naphtha from India, and drove premiums for Chennai cargoes to a 6-1/2-year high.
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"The recent weakness in LPG prices has heavily influenced the preference for naphtha in the last five weeks," Hui Heng Tan of brokerage Marex Spectron said.
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There were no shipments of crude oil, gasoline, jet fuel, fuel oil and naphtha in January, the official, who did not want to be identified, told Reuters.
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Idemitsu and Mitsui Chemicals set up the 50:50 venture in 2010 to jointly operate their naphtha crackers in Chiba, east of Tokyo, to save on costs.
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Light crudes produce a byproduct known as naphtha, normally used to make plastics, but refiners can shift their processes to use it for jet fuel production instead.
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The vessel, owned by Norway's Frontline , had loaded naphtha, a petrochemical feedstock, from Ruwais in the UAE, according to trade sources and shipping date on Refinitiv Eikon.
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A consumption tax of 40 yuan ($6.16) per tonne for selling the naphtha as a petrochemical feedstock has deterred the teapots from selling the fuel, sources said.
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The Marshall Islands-flagged Front Altair carrying naphtha and the Panama-flagged Kokuka Courageous carrying methanol have been evacuated and the crews were safe, shipping sources said.
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Reliance reiterated that it has stopped shipments of diluent naphtha to Venezuela, and has reduced its purchases of Venezuelan crude oil to well below its contracted levels.
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In total, there are 12 vessels carrying components of gasoline, naphtha and other products waiting since at least October to discharge, according to Reuters vessel tracking data.
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The harbour at which the explosion occurred is a terminal for combustible fluids such as naphtha and methanol that are important for BASF's supply of raw materials.
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Asia's naphtha crack on Wednesday hit a six-month low at a discount of about $9 a barrel to Brent crude, lower than that for fuel oil.
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PDVSA was importing about 20183,000 bpd of naphtha, mostly from the United states, to dilute up to 400,000 bpd of extra heavy oil and make it exportable.
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European exports to North America of gasoline and naphtha, which is used for blending into gasoline, will jump in the coming weeks to the highest in months.
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The burning tanks held naphtha and xylene, fuels used in gasoline and plastics and toluene - a volatile liquid used to make nail polish remover and paint thinner.
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The fire broke out on Sunday morning in a storage tank containing naphtha, a super light oil used to make high-grade gasoline, jet fuel and petrochemicals.
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The third-largest buyer of Iranian oil in Asia has restricted its purchases to only condensate, an ultra light oil used in producing naphtha for petrochemical production.
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OPEC's third-largest oil producer, Iran, exports more than 500,000 bpd of refined products, mainly fuel oil, petroleum gas and naphtha to Asian markets, according to OPEC.
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Ecopetrol is also reducing the volume of imported naphtha it needs to dilute its heavy crude output by making changes at its transportation system, according to Bayon.
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LG Chem currently operates two naphtha crackers in the southwestern cities of Yeosu and Daesan with a combined 2.2 million tonnes per year (tpy) of ethylene output.
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Naphtha premiums in South Korea, Taiwan and Malaysia have been rising since early March, with levels last week reaching over $10 a tonne, the highest since December.
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Asia's naphtha crack, which describes the profitability of producing the fuel, also trended higher to $91.20 a tonne at the end of March, the highest since Jan.
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Oil Brokerage was founded in 1988 as a broker of physical gasoline in Europe, and later expanded to include physical and paper biofuels, naphtha and fuel oil.
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The trader added that Asia could need around 1 million tonnes of open-specification naphtha in June, but most of the barrels coming in were heavier grades.
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Not only was the United States Venezuela's No. 1 customer, but it was the country's main source of naphtha, the liquid hydrocarbon mixture used to dilute crude.
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As petrochemical consumption in South Korea began jumping, and with LPG prices dropping to around 30 percent less than naphtha, demand recovered, shooting to its highest ever.
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However, they can only alter their yield by a few percent, particularly because refiners are flush with light U.S. crude that produces gasoline-friendly naphtha, Rogers said.
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Light distillate stocks in Singapore, which include the key transportation fuel gasoline and important petrochemical feedstock naphtha, rose by 1.47 million barrels in the week to Jan.
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For South Korea, the shift could help deepen ties with its closest political ally, the United States, where production of condensate, and also naphtha, is growing fast.
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It will also face a shortage of 28,000 bpd of naphtha, a fuel similar to gasoline used to dilute Orinoco oil in order to increase its sale value.
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The firm, which earns 70 percent of revenue at home and in Indonesia, will use the IPO proceeds to build a naphtha cracker plant in its southern neighbour.
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Boskalis said the condition of the Front Altair tanker, carrying a cargo of naphtha, was still worrying, although the fire on the ship had been extinguished on Thursday.
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In addition to U.S. crude, Phillips 66 has been marketing Black Hawk condensate and it also regularly sells heavy naphtha from the United States to Asia, traders said.
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"The Koreans and Formosa moved immediately when the value was in switch mode, (showing) impressive quickness," said one of the traders, who closely follows naphtha and LPG markets.
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The sources, who requested anonymity to discuss private talks, said a draft naphtha supply agreement had been reached in December under former Petrobras Chief Executive Officer Ivan Monteiro.
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Reliance also halted all supply of diluents including heavy naphtha to Venezuela and does not plan to resume such sales until sanctions are lifted, according to the release.
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The lower-grade export fuel, which has an octane number of 91, is produced by blending lower-grade gasoline with naphtha, said the source, without giving further details.
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Asia is set to receive around 900,000 tonnes of naphtha from Western Europe and the Mediterranean in February, based on a survey of five traders in the market.
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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.
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The fire did not directly affect the plant's 500,000 tonne-per-year naphtha cracker, which has been shut down since June 14 for scheduled maintenance, the spokeswoman said.
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SINGAPORE (Reuters) - Petroleum and metals trader Clearsource is expanding its Asian operations through its Singapore office to include naphtha and liquefied petroleum gas (LPG), its chief executive said.
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A Mitsubishi spokesman confirmed it had bought naphtha from Iran recently, but declined to comment on details or which refinery the cargo was from due to company policy.
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Hanwha Total has been importing an average of 250,000 tonnes of heavy full-range naphtha a month this year versus 150,000 tonnes a month in 2017, traders said.
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One tanker, the Torm Hilde carrying 780,000 barrels of naphtha, has set sail for Venezuela, while a second one with 500,000 barrels was expected to set sail soon.
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Japan's Keiyo, Mitsubishi Chemical, Mitsui Chemicals and Asia's top naphtha importer, Formosa Petrochemical Corp in Taiwan, are due to start maintenance at their crackers in May or June.
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PDVSA and its joint ventures mainly sold diluted crude oil (DCO) to U.S. customers last year, a grade that mixes Venezuelan extra heavy oil with imported heavy naphtha.
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Splitters are oil refining units that break down the condensate into diesel fuel and naphtha that is mainly used as a raw material to make petrochemicals like plastics.
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"There could be a rebound (in condensate prices) in September because naphtha cracks are showing some signs of a rebound," a trader with a North Asian firm said.
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However, any weakness in gasoline markets could sap the recent bull-run in prices for naphtha, which can also be used as a blending component for the fuel.
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The 124% slide in profit-margin from its March-peak makes naphtha, a petroleum feedstock used in the refining industry, the worst performing margin among all oil products.
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Braskem, Latin America's largest petrochemical company, has long relied on Petrobras to supply it with naphtha, the main feedstock that it uses for producing plastics and other petrochemicals.
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Boskalis said the condition of the Front Altair tanker, carrying a cargo of naphtha, was still worrying, while the methanol carrying Kokuka Courageous was in a stable condition.
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Global commodity trader Vitol has hired Roy Kim as a naphtha trader at its Singapore office following the departure of two key traders, three market sources said on Tuesday.
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Depending on the grades, naphtha can also be used as a gasoline blendstock other than being cracked into petrochemical products such as ethylene and propylene, raw materials for plastics.
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SINGAPORE (Reuters) - Rising supplies of naphtha from the western hemisphere to Asia are seen eroding the petroleum product's spot premium which hit a near four-year highs last month.
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Rosneft last week asked buyers to use the euro as the default currency for the first time in a spot tender to sell naphtha, an official company document showed.
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Refinitiv Eikon ship tracking data showed the Front Altair, an Aframax vessel, was in waters between Oman and Iran, carrying its naphtha cargo for delivery in Taiwan this month.
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Still, the teapots' ESPO demand may improve as several of them are building new units to further process the naphtha, including the largest, Shandong Dongming Petrochemical, the sources said.
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Nakata began his naphtha career with Marubeni in Japan and was there for 18 years before moving to Singapore to join Trafigura in 2012, according to his Linkedin profile.
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Castleton (CCI), which started trading naphtha in Singapore in 2014 and acquired Morgan Stanley's physical oil business in 2015, did not reply to an email Reuters sent last week.
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The report came weeks after Petrobras agreed to provide a stable stream of naphtha shipments to Braskem for five years, finishing a round of protracted negotiations that lasted months.
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U.S. oil sales to PDVSA are mostly heavy naphtha and light crude that the company uses to dilute and make exportable the extra heavy oil from the Orinoco Belt.
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Just in February South Korea's SK Innovation, a major Asian refiner, said its margins would remain strong as demand for gasoline and naphtha offset weaker markets for other fuels.
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There were no shipments of crude oil, naphtha, jet fuel or vacuum gasoil from Batumi in January-March, the official, who did not want to be identified, told Reuters.
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Iran, OPEC's third-largest oil producer, exports more than 500,000 barrels per day of refined products, mainly fuel oil, petroleum gas and naphtha to Asian markets, according to OPEC.
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SINGAPORE, May 9 (Reuters) - Japan's Mitsui Chemicals is expected to restart its Ichihara naphtha cracker by May 12 following a glitch last week, five industry sources said on Thursday.
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South Korea's LG Chem does not expect to restart its 1.3 million tonnes per year (tpy) naphtha cracker until next week after closing it last week following technical trouble.
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"They sell most of their cargoes on a CFR (cost and freight) basis, meaning they can supply their buyers with alternative naphtha sourced from all over," the source added.
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Last week PDVSA ordered Petrocedeno to halt oil production and upgrading, due to a lack of naphtha to dilute the extra-heavy crude, according to sources from the project.
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The benchmark naphtha margin last week closed at a $15.38 a tonne discount to Brent crude, the lowest since December 2008, when the financial crisis roiled the global economy.
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South Korea's LG Chem does not expect to restart its 1.3 million tonne per year (tpy) naphtha cracker until next week, after closing it last week following technical trouble.
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Alternative fuels like naphtha, which results from refinery distillation, have increasingly found their way into Korean facilities, said an official at Hyundai Oilbank, who spoke on condition of anonymity.
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The benefit from boosting propane and cutting naphtha as feedstock is set to lead to cost cuts of around 1 billion yen ($8.90 million) a year, the company spokeswoman said.
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Two traders familiar with Hongrun's exports estimated the plant shipped close to 400,000 tonnes of fuel overseas, of which nearly 70 percent was gasoline and the rest naphtha and diesel.
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Naphtha supply has outpaced demand this year because of scheduled cracker maintenance, cracker outages in Japan and South Korea and the prolonged use of cheaper alternative feedstock liquefied petroleum gas.
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In the third quarter, South Korea's combined imports of naphtha and liquefied petroleum gas (LPG) also increased 14.3 percent to 88.73 million barrels supported by healthy demand for chemical feedstock.
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Chemical companies typically process refined oil products such as naphtha - created by separating crude oil into lighter groups - at facilities called crackers to create petrochemicals such as ethylene and propylene.
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A giant storage tank containing volatile naphtha at Intercontinental Terminals Co (ITC) Deer Park site continued to burn six hours after the blaze broke out at about 10:30 a.m.
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"LPG prices will likely be weak relative to naphtha in the coming months, incentivizing petrochemical demand," said He Yanyu who leads Asia natural gas liquids market research at IHS Markit.
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Gasoline, blending component and naphtha stocks in the region fell by more than 6 percent in the week to March 31, according to industry monitor Genscape, to 2.9 million tonnes.
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For June, at least 300,000 tonnes of LPG are expected to replace naphtha in Asian crackers, up from under 200,000 and 150,113 tonnes respectively in May and April, traders said.
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The fire began on Sunday when a leaking tank containing volatile naphtha, a fuel used in the production of gasoline, ignited and flames quickly spread to nearby tanks, ITC said.
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LPG, which can be used for a host of purposes including heating and cooking, is also a substitute for naphtha, a feedstock for the production of petrochemicals such as ethylene.
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The fire began on Sunday when a leaking tank containing volatile naphtha, a fuel used in the production of gasoline, ignited and flames quickly spread to other tanks, ITC said.
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Asia is structurally short of naphtha, a feedstock used to make plastics and other petrochemical products, and is dependent on the West and the Middle East to fill the gap.
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Besides improving the economies of scale for crude purchases, the alliance could at a later stage form joint ventures for petrochemical production by pooling together their naphtha supplies, Zhang said.
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Since the end of last month, the profit from producing gasoline GL92-SIN-CRK more than doubled and margins for naphtha rose 53 percent, pushing the gains in overall margins.
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The vast, ambitious novels imagine a steampunkish version of our world, where the rooms are lit by naphtha lamps, blimplike airships cruise the skies, and armored bears prowl the north.
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In Europe, several crackers were reported to have increased their intake of propane available at a discount to naphtha since March, the end of the northern hemisphere winter, IEA said.
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A joint venture that produces 25,000 barrels per day, for example, would spend around $9 million a month on naphtha purchases at current spot prices in the U.S. Gulf Coast.
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SABIC has previously said the proposed project could cost as much as $30 billion, processing petrochemicals directly from crude oil instead of first refining the oil into products such as naphtha.
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The benchmark naphtha margin last week closed at minus $15.38 a tonne to Brent crude, the lowest since December 2008 when the financial crisis roiled the global economy.
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Gasoline and naphtha, which have been dragging down overall refining margins in the first half of this year, have also rebounded on supply cuts and as steam crackers return from maintenance.
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The company has not so far identified any damage to other plant facilities including a 500,000 tonne-per-year naphtha cracker, which has been shut since June 14 for scheduled maintenance.
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DHAKA, April 10 (Reuters) - Bangladesh Petroleum Corp (BPC) has floated an international tender to sell 6003,000 barrels of naphtha for May 11-13 loading from Chittagong, according to the tender document.
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PDVSA launched tenders to buy at least 300,000 barrels of catalytic naphtha and 300,000 barrels of high-sulfur diesel (HSD) for May delivery, according to documents seen by Reuters on Tuesday.
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Petrochemical companies in Asia are typically set up to shift around 43 percent to 15 percent of their feedstock to LPG when prices drop below 93 percent the cost of naphtha.
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This will put more short-term pressure on naphtha cracks, or profits earned from making the light fuel, which have weakened as refiners ramped up processing rates because of cheap crude.
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LPG prices on May 20173 for first-half July were $22017 to $211 a ton, less than 22015 percent of a naphtha price at $417.50, data from brokerage Ginga Petroleum showed.
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The source said the recent signing of a long-term naphtha supply contract for Braskem has helped the company's stock recover from recent declines, making a sale more attractive for Petrobras.
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Output of full-range naphtha will double with the start of the splitter, Ibrahim Al Sulaiti, marketing director of condensate at Qatar International Petroleum Marketing Co, or Tasweeq, said in 2014.
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A Hyundai Oilbank spokesman said the facility, which splits condensate into fuels like naphtha for use in the petrochemcials industry, would be completed in the second half but declined to elaborate.
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The benchmark naphtha margin NAF-SIN-CRK last week closed at minus $15.38 a tonne to Brent crude, the lowest since December 2008 when the financial crisis roiled the global economy.
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Paravaikkarasu said "naphtha cracks should receive some relief from the full return of crackers from maintenance" later in the northern hemisphere summer, but added that "the recovery path will be slow".
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Jose's South dock is mainly used to export upgraded oil produced at the vast Orinoco Belt, and to discharge the imported naphtha PDVSA needs to dilute its extra heavy oil output.
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"The joint venture you currently represent will have to purchase the naphtha volumes needed to meet your production plan for 2016," reads a letter sent to companies working in the Orinoco.
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The Ras Tanura project, including a naphtha hydrotreater, was to be part of a second phase of upgrades to Aramco's refineries and was originally due to go on stream in 2016.
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"The ethylene-naphtha spread is now around $350 a tonne, about half of what it was some three months ago," said Sri Paravaikkarasu, director for Asia oil at energy consultancy FGE.
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Venezuela's main fuel providers are Citgo and India's Reliance Industries Ltd, which typically ships naphtha, alkylate for gasoline, diesel and components from the United States, according to internal PDVSA trade documents.
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BEIJING (Reuters) - An oil tanker carrying 3,400 tons of naphtha exploded during discharge at a southern Chinese port on Thursday and one person on board was missing, official Xinhua news agency reported.
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But it reduced the average throughput of the naphtha crackers to about 95% of total capacity in June because of weaker demand for ethylene caused by maintenance at downstream units, he said.
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Idemitsu has a naphtha cracker adjacent to its Chiba refinery with capacity to produce 414,000 tonnes per year of ethylene, while Mitsui has one with a capacity of 612,000 tonnes per year.
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The benchmark naphtha margin last week closed at a $15.38 a tonne discount to Brent crude, the lowest since December 2008, when the financial crisis roiled the global economy.
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Petrochemical companies in Asia are typically set up to shift around 43 percent to 15 percent of their feedstock to LPG when prices drop below 93 percent of the cost of naphtha.
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The refiner is looking to sell 33,000 tonnes of naphtha for June 4-6 loading from Mumbai and another 55,000 tonnes for June 10-12 loading from the southwestern port of Kochi.
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At least 16 tankers carrying some 600,000 tonnes of gasoline blending components including naphtha have been booked in recent days by traders including Glencore, ExxonMobil, Mercuria, Repsol and Total, shipping data shows.
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The hub at Le Havre port has 2.4 million cubic metres of crude storage capacity and 1.7 million cubic metres of refined products storage capacity for jet fuel, diesel, petrol and naphtha.
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DHAKA, April 24 (Reuters) - Bangladesh Petroleum Corp (BPC) has issued an international tender to sell 170,000 barrels of naphtha for May 26-28 loading from Chittagong, a company official said on Sunday.
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However, switching cut points and changing catalysts to increase distillate yields at the expense of naphtha and gasoline is unlikely to be enough on its own to bring gasoline stocks under control.
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The benchmark naphtha margin NAF-SIN-CRK last week closed at a $15.38 a tonne discount to Brent crude, the lowest since December 2008, when the financial crisis roiled the global economy.
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JAPAN/SINGAPORE, Sept 12 (Reuters) - Japan's Keiyo Ethylene Co has adjusted the throughout at its naphtha cracker due to a typhoon, a spokesman from co-owner Maruzen Petrochemical Co said on Thursday.
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Saudi Aramco took into account other factors such as a stronger Oman-Dubai benchmark and recent sharp declines in naphtha and gasoline margins when setting prices this month, traders in Asia said.
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SINGAPORE (Reuters) - Liquefied petroleum gas (LPG) buyers are set to enjoy another year of abundant supplies in 803 but naphtha as a competing fuel in the petrochemical sector could come under pressure.
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"We estimate that there will be surplus naphtha barrels in August/September," said Matthew Chew, principal oil analyst at IHS Markit, although the oversupply in September is expected to be lower than August.
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The funds would be used to construct a polypropylene plant in the southern Malaysian state of Johor, develop an integrated petrochemical facility in Indonesia and upgrade the company's existing naphtha cracker, he added.
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Benchmark Singapore naphtha refinery margins from refining a barrel of Brent crude, have already tumbled more than 60 percent since the beginning of the year to around $54 per ton on June 21.
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The location, the Russian heartland of oil production, allows Sibur to cut transportation costs as it obtains the feedstock, such as associated petroleum gas and naphtha, from nearby fields operated by other companies.
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The blaze at a site along the Houston Ship Channel in Deer Park, Texas, started when a leak from a tank containing volatile naphtha ignited and spread to others in the same complex.
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TOKYO, Sept 22 (Reuters) - Japan's Idemitsu Kosan shut the 414,000 tonnes per year Chiba naphtha cracker on Friday to increase its capacity to process propane, an industry source familiar with the matter said.
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DHAKA, Feb 6003 (Reuters) - Bangladesh Petroleum Corp (BPC) will sell 170,000 barrels of naphtha to oil trading giant Vitol at a discount of 17 cents to Singapore quotes, up from the last sale.
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We expect during the first phase for there to be a reduction in value (of naphtha) but when the facility comes on stream with a steady flow we should get the right premium.
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West Texas Light (WTL) is seen as a potential substitute for Iranian condensate because, when refined, WTL yields a large volume of the refined product naphtha, which can be used to produce petrochemicals.
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Dongming, for example, plans to add a 800,000 tons-per-year naphtha cracker, extending its business from transportation fuels to higher value plastics and synthetic rubber as well as fine chemicals, said Zhang.
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Most of the respondents expect similar price cuts across all grades in May, although one person said he expects a smaller cut for Arab Extra Light's OSP on support from firm naphtha margins.
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But with many Asia facilities that process naphtha - a feedstock for producing petrochemicals used to make plastics - going into maintenance in the next couple of months, the market tightness may be short-lived.
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Benchmark Singapore naphtha refinery margins from refining a barrel of Brent crude have already tumbled more than 60 percent since the beginning of the year to around $53 per tonne on June 22.
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The Front Altair, registered in the Marshall Islands, was chartered by the CPC Corporation, the Taiwanese oil company, to carry naphtha, a petroleum product, from the Emirati port of Ruwais to Kaohsiung, Taiwan.
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Prices for gas oil and low-sulfur fuel oil have held at higher-than-normal levels, while gasoline, naphtha and high-sulfur fuel oil prices have been hovering at lower levels, he said.
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SINGAPORE (Reuters) - Saudi Aramco's trading arm bought 70,000 tonnes of naphtha from Indian Oil Corp on Friday at premiums not seen since 2013 as it seeks to plug a supply gap following Sept.
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Michael Dei-Michei, head of research of trade consultancy JBC Energy, said high European refinery output and weak gasoline demand were reasons for the surge in open-spec naphtha to increasingly arrive in Asia.
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PDVSA last year bought 45,000 barrels per day (bpd) of light crudes, mostly from Africa and Russia, and it also imported some 65,000 bpd of heavy naphtha to dilute its extra heavy oil output.
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One senior official in charge of SK Energy's naphtha business said margins for that product are also likely to remain firm thanks to low oil prices, healthy petrochemical margins and demand for gasoline blending.
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Four traders said that Taiwan's Formosa Petrochemical Corp, Asia's top naphtha importer, last week bought its first spot LPG cargo of the year, with South Korea's LG Chem and Lotte Chemical also taking cargoes.
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The shale revolution is unleashing a tidal wave of cheap natural gas and related liquids that can be used instead of pricier, petroleum-derived naphtha (the feedstock typically used outside America) to make chemicals.
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Additional naphtha exports from Reliance are expected to have little impact on the market, trade sources said, although it depends on cargoes arriving in Asia from the Middle East and the West, including Europe.
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"Buyers will accept the change as the impact is not major as buyers could place a slightly lower bid factoring in that Argus prices may be higher," said a buyer of Indian naphtha cargoes.
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Four traders said that Taiwan's Formosa Petrochemical Corp , Asia's top naphtha importer, last week bought its first spot LPG cargo of the year, with South Korea's LG Chem and Lotte Chemical also taking cargoes.
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The blaze at Intercontinental Terminals Co (ITC) in Deer Park, Texas, has been burning since Sunday when a leaking tank containing volatile naphtha ignited and quickly spread to other nearby tanks, the company said.
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However, propane and butane for second-half February delivery were at about $522 a tonne and nearly $566 a tonne against prompt Asian naphtha at $517, data from brokerage Ginga showed on Jan. 20.
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Demand for ethane would expand the fastest pace in the next five years, rising by 885,000 bpd, followed by naphtha with growth of 495,000 bpd and LPG with growth of 40,000 bpd, it said.
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MOSCOW (Reuters) - Russian state oil company Rosneft has for the first time asked buyers to use the euro as the default currency in a spot tender to sell naphtha, an official Rosneft document shows.
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For its part, PDVSA imported several cargoes of diesel, gasoil, liquefied petroleum gas (LPG), gasoline blend stock and heavy naphtha for the Venezuelan domestic market last month, according to Thomson Reuters vessel tracking data.
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The tender comes at a time when Asia's naphtha crack recovered from a five-week low to reach a three-session high of $70.95 a tonne on Friday, with demand from South Korea seen.
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Already Beijing has signaled that it won't allow smaller, independent refiners to export this year, ending a year-old policy to allow some of them to sell diesel, gasoline and naphtha to overseas markets.
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A 60,000 tonne cargo of naphtha, used as a gasoline blending component, was also provisionally booked out of the Baltic port of Ust Luga to go on the transatlantic route, according to the data.
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Some of the companies that have exited the naphtha business in late 2019 were European liquefied petroleum gas (LPG) company Petredec and MRI Trading owned by CWT, a unit of China's HNA Group Ltd.
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These were the highest premiums IOC has fetched for naphtha sold out of Chennai since it sold a cargo to Unipec at a premium of about $55 a tonne in 2013, Reuters data showed.
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"It's not easy to make a call now on how much more naphtha Europe would push to Asia because demand from their petrochemical sector should still be firm," said a second Singapore-based industry source.
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But they will be subject to a ceiling price set according to the landed price of alternatives such as fuel oil, naphtha, coal and liquefied natural gas, Oil Minister Dharmendra Pradhan told a news conference.
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In OPEC-member Venezuela, there are signs that state-owned producer PDVSA is in dire straits over the oil price crash as it has requested partners to pay for naphtha imported to produce exportable crudes.
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Taiwan's state oil refiner CPC said tanker Front Altair, owned by Norway's Frontline, was "suspected of being hit by a torpedo" around 0400GMT, as it carried 75,000 tonnes of the petrochemical feedstock naphtha to Taiwan.
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SEOUL (Reuters) - South Korea's SK Innovation Co Ltd said on Wednesday that Asian refining margins will remain stable as strong demand for gasoline and naphtha offset a weaker diesel market amid low crude oil prices.
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Petrochemicals are created by units called crackers that heat at extreme temperatures refined products such as naphtha or gases like ethane, propane or butane into more complex carbon molecules such as ethylene, propylene or butadiene.
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Reliance had been supplying alkylate, diluent naphtha and other fuel to Venezuela through its U.S.-based subsidiary before Washington imposed sanctions aimed at curbing the OPEC member's oil exports and ousting socialist President Nicolas Maduro.
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Not only is the ethylene produced there much cheaper than naphtha abroad, but making more sophisticated chemicals and plastics in this region also saves on transport costs since much of American manufacturing is close by.
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On June 16, 1966, the Texaco Massachusetts was coming out of the bay and turning into the K.V.K. when it ran into the Alva Cape, which was carrying 19953 million gallons of naphtha from India.
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China's Unipec, the trading arm of Asia's largest refiner Sinopec, has hired ex-Marubeni trader Takuma Yamaguchi to run its Singapore's naphtha operations this year after the position was left vacant for about a year.
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The expansion will increase the production capacity of LG Chem's naphtha cracker in the southwestern city of Yeosu by 800,000 tonnes per year (tpy) of ethylene and polyolefin, the company said in a regulatory filing.
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The loss of Iranian supplies meant Korean buyers had to find and settle for other sources of oil that are not great replacements for SPC as their heavy naphtha yields are lower, trade sources said.
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It paid a $3-a-tonne premium to Japan quotes on a cost-and-freight (C&F) basis for heavy full-range naphtha on Tuesday, down from this year's high of nearly $17 a tonne.
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The splitter, located in Rotterdam, is a specialised refining asset that processes very light oil, known as condensate, into higher value products such as naphtha that is used in the petrochemical industry and gasoline blending.
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Weakness in the oil complex started in October in gasoline and naphtha, a feedstock for petrochemicals, as refiners processed more light oil that gives a bigger yield on these products also known as light distillates.
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"Should seasonal gasoline strength into the summer fail to materialise, then that would be a good reason for more naphtha to price out of the gasoline pool, causing renewed weakness in cracks," said Dei-Michei.
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NEW DELHI, March 27 (Reuters) - India's Haldia Petrochemicals has shut its naphtha cracker, a person familiar with the matter said, after ports in the country declared force majeure to prevent the spread of the coronavirus.
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The petrochemical maker operates a 670,000 tonnes per year cracker, which on average would need more than 150,000 tonnes of naphtha feedstock a month if the unit is at full capacity, based on Reuters calculations.
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Of the refinery's proposed 400,000-bpd fuel output, 70-75 percent will be diesel and jet fuel, up from 56 percent currently, while gasoline and naphtha production will remain at 20-25 percent, they said.
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The cost of moving naphtha on a LR1 tanker on this route has increased by some $100,000 per voyage, two sources estimated, with Refinitiv Eikon data showing TC5 at W1173 on Wednesday.
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The fire at the Mildred Lake upgrader, which processes mined bitumen into refinery-ready synthetic crude, broke out on March 14 after a line failure caused a leak near one of the naphtha hydrotreating units.
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Asian refiners' profit for producing a tonne of naphtha from Brent is down about a third from a month ago, while the margin for gasoline has fallen 40 percent, data on Thomson Reuters Eikon showed.
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If imported diluents including naphtha are not available, PDVSA is forced to use the little production of light crude the country has for mixing with its extra heavy oil so exportable grades can be formulated.
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DUBAI (Reuters) - Qatar Petroleum said on Sunday it had concluded a 10 year sales agreement to supply Thailand's SCG Chemicals with a total of 3 million metric tons of light naphtha starting from this month.
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OMV's Chief Executive Rainer Seele told Reuters recently that he was ebullient about a market awash with cheap naphtha because it would benefit OMV's push into petrochemical markets, providing a natural hedge in its operations.
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SAO PAULO, May 10 (Reuters) - Braskem SA will soon start to negotiate a long-term contract to buy naphtha from its shareholder Petroleo Brasileiro SA, the chief executive of the Brazilian petrochemical company said on Thursday.
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While the reduced volume has lifted spot prices, a weak gasoline market and cracker maintenance in North Asia in March are capping price gains and preventing open-specification naphtha prices from rising too sharply, traders said.
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It has said the complex, at the Red Sea city of Yanbu, could cost as much as $30 billion, processing petrochemicals directly from crude oil instead of first refining the oil into products such as naphtha.
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Taiwan's Formosa Petrochemical Corp, Asia's top naphtha importer, had to pay $15 a ton premium to its own price formula on a cost-and-freight (C&F) basis on May 24, the highest price since 2014.
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"Atlantic gasoline is well-supplied at the moment – likely exacerbated by high pump prices – and incremental blending is weak, potentially freeing up some naphtha volumes that we haven't seen in earlier months this year," he said.
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Expectations of surging Chinese supplies squashed the chemical's processing margin, or PX's price over naphtha, a refinery product used to make PX, to below $320 a tonne in mid-August, versus $0003-$700 a year ago.
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PDVSA is responsible for providing the naphtha, or light crude, needed to dilute the extra heavy oil produced at the Orinoco Belt, according to contracts signed with foreign partners including Chevron, Spain's Repsol and India's ONGC.
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Based on data from the Korea Petrochemical Industry Association (KPIA), the average spread between high-density polyethylene (HDPE) and naphtha feedstock costs in the second quarter was $421.34 a ton - the lowest quarterly average since 20203.
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Taiwan's state oil refiner CPC said the Front Altair, owned by Norway's Frontline, was "suspected of being hit by a torpedo" around 0400 GMT, as it carried 75,000 tonnes of the petrochemical feedstock naphtha to Taiwan.
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So far this year, Venezuela has imported about 190,000 bpd of refined products, including heavy naphtha for diluting extra-heavy oil, as well as gasoline, diesel and liquefied petroleum gas, according to the documents and data.
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Midstream companies such as Magellan rushed to build condensate splitters during the shale boom earlier this decade to break light oil into products such as naphtha and unfinished distillates, which could be exported or sold domestically.
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The South American nation exports crude but its refineries are in poor condition - hence the need to import gasoline and diesel for petrol stations and power plants, as well as naphtha to dilute its heavy oil.
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Access to the site, along the Houston Ship Channel, will help determine what happened and how a fire at one tank holding tens of thousands of barrels of naphtha spread quickly to 10 other giant tanks.
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The refiner may extend the formula of using a mean of Platts and Argus prices to other products if the naphtha pricing is well received by traders, said the source, who asked not to be identified.
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SEOUL, Nov 15 (Reuters) - South Korea's Hyundai Chemical, a joint venture between Hyundai Oilbank Co and Lotte Chemical, has finished building a 1.2 trillion won ($1.02 billion) condensate splitter to produce mixed xylene and light naphtha.
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The blaze at Intercontinental Terminals Co (ITC) in Deer Park, Texas, has been burning since Sunday when a leaking tank containing volatile naphtha ignited and quickly spread to other tanks within close proximity, the company said.
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Reliance had been supplying alkylate, diluent naphtha and other fuel to Venezuela through its U.S.-based subsidiary before Washington imposed the sanctions aimed at curbing the OPEC member's oil exports and ousting Socialist President Nicolas Maduro.
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Asia petrochemical producers had been using LPG to swap out a portion, typically between 5 to 15 percent, of the naphtha that is normally used as a feedstock to make products such as ethylene and propylene.
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Tahrir Petrochemicals, which is being funded by credit agencies in the United States, Britain and Germany, is Egypt's first naphtha cracker and will produce different types of petrochemicals used to make various consumer and industrial goods.
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Products such as catalytic naphtha, ultra-low sulfur diesel (ULSD), gasoil for power generation, gasoline blend stock and base oils have been imported by PDVSA in 27 cargoes this year, mostly bought on the open market.
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The harbor terminal at which the explosion occurred handles combustible fluids such as naphtha and methanol and remains closed for the time being, which means BASF is facing a shortage of raw materials needed for production.
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To keep exports stable with limited upgrading capacity, PDVSA will need to import diluents - light crude or heavy naphtha - that can be blended directly with extra heavy oil from the Orinoco belt to make exportable grades.
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The South American nation exports crude but its refineries are in poor condition - hence the need to import gasoline and diesel for petrol stations and power plants, as well as naphtha to dilute its heavy oil.
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For July, Iranian condensate exports are expected to fall by 38 percent to about 252,000 barrels per day (bpd), the sources said citing loading data, as Asian refiners replace the ultra-light oil with cheaper naphtha.
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"We have been seeing this amount of 1.1 million in the last two to three weeks and it could stay at that level," said a Singapore-based trader at a company that regularly deals in naphtha.
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A shift toward imports of lighter grades of crude may also act as a spur to gasoline exports, given light crudes produce more gasoline and naphtha and less middle distillates, such as diesel and jet kerosene.
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Crude oil, condensate, naphtha, base and extract oils are stored at the facility, which has a total crude oil storage capacity of approximately 24 million barrels in approximately 130 aboveground storage tanks, according to the company.
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Aruba would offer a good way for PDVSA to produce heavy naphtha that it currently imports as diluent for its extra heavy oil output, and it would also produce refining feedstock for Citgo, according to the sources.
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The investment plan also includes a naphtha cracker plant at the existing PTTGC facility in Map Ta Phut which will put production capacity at 500,000 tons per year for ethylene and 250,000 tons per year for propylene.
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Urdapilleta joined Trafigura almost 10 years ago and has worked in Buenos Aires, Geneva, Singapore and across biodiesel, distillates, naphtha, condensates and crude – as well as most recently managing the oil trading division in Asia, she added.
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Such oil results in higher levels of naphtha, which is used for plastics and in petrochemicals production - but refiners can shift, or "swing" some of that output so that it produces incremental additional barrels of jet fuel.
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Faltering demand for naphtha could drag on prices that have been in premiums to benchmark Japanese quotes for most of the year compared to discounts in the same period in 2016, while offering support to LPG markets.
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The three other ventures with upgraders in the Orinoco, operated by PDVSA and Rosneft, Total SA and Equinor, will produce extraheavy oil temporarily mixed with naphtha for transportation and later blended to formulate Merey, the documents show.
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The same units will also be able to produce up to 10 million tonnes of naphtha per year by 2022, which could be entirely processed to the gasoline if needed, according to industry sources and Reuters data.
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Until now, Puerto Bahia crude had been mostly sent to terminals in the Caribbean, where Shell mixed it with imported naphtha to convert it to the popular Castilla heavy blend, according to traders close to these operations.
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SINGAPORE (Reuters) - Asian petrochemical makers will use around twice as much liquefied petroleum gas (LPG) in June as in the previous two months, undercutting already weak margins being earned on traditional chemical feedstock naphtha, trade sources said.
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Singapore's margins for naphtha NAF-SIN-CRK have crashed 22018 percent this year to $256 per tonne, a sharp decline from $23 just two years ago and well off its long-term average of $103 per tonne.
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The blaze at a site along the Houston Ship Channel in Deer Park, Texas, began Sunday when a leak from a tank containing volatile naphtha ignited and spread to others in the same complex, the company said.
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Swiss Singapore Overseas Enterprises, which is part of the Indian multinational conglomerate Aditya Birla Group, is also starting a naphtha trading desk at its Singapore office and has hired a trader who used to be with Daelim.
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Venezuela's state-run oil company PDVSA and its joint ventures have reduced shipments of grades mixed with naphtha in recent months, using more domestic and imported light oil to formulate crude blends instead, according to company sources.
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The 70,000 bpd fluidic catalytic cracking unit has been kept at operating temperature and circulating gas oil feedstock while Shell works to repair the leak of naphtha in an overhead line on the FCCU, the sources said.
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The effects of a tight market have sent spot premiums for Indian cargoes of naphtha to a three-year high at more than $29 a tonne over Middle East quotes on a free-on-board (FOB) basis.
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VPS-5, DCU-2, the naphtha hydrotreater and the reformer were all added to the refinery in a $10-billion expansion project that was completed in 2012 and more than doubled the refinery's crude oil processing capacity.
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Song Choong-seop, a spokesman for LG Chem, said the money had been supposed to go to its supplier, Saudi Arabia's Aramco Trading, to pay for naphtha, a feedstock used to make plastics and other petrochemical products.
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Friday's fire complicated ongoing cleanup efforts that had been underway as a result of the first fire, which burned multiple tanks containing chemicals that go into making gasoline, including xylene, naphtha and pyrolysis gasoline, known as Pygas.
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As of Wednesday, over 15 tankers were anchored near PDVSA's ports waiting to discharge some 5.5 million barrels of imported diesel, gasoline, vacuum gasoil, liquefied petroleum gas and naphtha - enough for an estimated 13 days of consumption.
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Reuters reported in March that talks with Brazilian conglomerate Odebrecht SA over a potential $11 billion deal for Braskem had slowed due to issues linked to a delayed U.S. filing and a supply contract for naphtha with Petrobras.
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The document also shows that PDVSA has a deficit of 70,700 barrels of naphtha, a light oil product that it uses to dilute its extra-heavy crude into an exportable grade when the upgraders are out of service.
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The two vessels attacked south of the strait on June 13 were similarly not crude oil tankers, with the Kokuka Courageous transporting methanol and the Front Altair shipping naphtha, an oil product used to make gasoline and petrochemicals.
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Reliance had been supplying alkylate, diluent naphtha and other fuel to Venezuela through its U.S.-based subsidiary before Washington in late January imposed sanctions aimed at curbing the OPEC member's oil exports and ousting Socialist President Nicolas Maduro.
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The new plant will use naphtha and liquefied petroleum gas as its main stock, and be constructed in the southwestern city of Yeosu, where GS Caltex's 790,000 barrels-per-day refinery is already located, according to the statement.
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The fire, which sent a plume of black smoke across the city's eastern half and was visible from 10 miles (16 km) away, began Sunday morning in a giant storage tank containing naphtha, a volatile component of gasoline.
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This means that Asian refiners may be increasingly tempted to buy more light crudes in order to maximise the production of naphtha and gasoline, while still getting good volumes of middle distillates such as diesel and jet kerosene.
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PDVSA sold barrels for the first time to Iveex Insaat in April, when it loaded the tanker Seamuse with 294,413 barrels of natural gasoline and light virgin naphtha bound for the Middle East, trade documents from PDVSA show.
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Oil tanker Front Altair was carrying 75,000 tonnes of naphtha, a petrochemical feedstock, when it was "suspected of being hit by a torpedo" around noon Taiwan time (0400GMT), Wu I-Fang, CPC's petrochemical business division CEO, told Reuters.
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DUBAI - March 5 (Reuters) - Kuwait National Petroleum Co (KNPC) on Thursday announced the operation of naphtha conversion unit number 107 in the Mina Al-Ahmadi refinery with a production capacity of 30,000 bpd, state news agency KUNA reported.
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Since mid-2015, PDVSA has bought around 11.5 million barrels of African light and medium crudes, plus some 2 million barrels per month of heavy naphtha, according to vessel tracking data and PDVSA's internal exports and imports reports.
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Oil tanker Front Altair was carrying 75,000 tonnes of naphtha, a petrochemical feedstock, when it was "suspected of being hit by a torpedo" around noon Taiwan time (0400GMT), Wu I-Fang, CEO of CPC's petrochemical division, told Reuters.
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PDVSA also projects a sizeable deficit of light crude and naphtha, both of which are crucial to turn the extra heavy oil it produces in the Orinoco Belt - one of the world's largest deposits - into lighter grades for exports.
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With the commencement of the plant, the South Korean company hopes to boost its cost competitiveness by diversifying away from mainly naphtha as a feedstock to make ethylene, a key ingredient for petrochemical products, it said in a statement.
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"By sandwiching a layer of liquid rubber (made with naphtha) between two layers of fabric, Macintosh created a new material that would be resistant to water while also remaining flexible and wearable," reads Google's blog post on the inventor.
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The shift is due in part to the success of their own efforts to do everything they could – from choosing different crude oil to tweaking the way they ran their units – to capitalize on booming gasoline and naphtha demand.
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SINGAPORE (Reuters) - Asian petrochemical makers are ramping up purchases of liquefied petroleum gas (LPG) to use as an alternative feedstock to naphtha, looking to snap up cheap cargoes as heating demand for LPG fades in the wake of winter.
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The commodities firm has traditionally specialized in coal and crude oil but said it sees a growth opportunity now in the oil products business, including naphtha, a sector that has witnessed an exit by some other trading firms recently.
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LONDON, Oct 11 (Reuters) - A global manufacturing slowdown has reduced naphtha demand in recent months, the International Energy Agency said on Friday, as consumption in the January-August period fell by 85,000 barrels per day from a year earlier.
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Local daily Valor Economico said the Justice Department was focusing its investigation on whether the companies violated the Foreign Corrupt Practices Act in naphtha supply contracts since 2009 between Petrobras and Braskem, which has Odebrecht as a controlling shareholder.
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It listed the target IPO date as the third quarter of 2017 and said proceeds will be used to build a naphtha cracker in Indonesia and a polypropylene plant in Malaysia, as well as to expand its cracker facility in Malaysia.
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Image: AmazonAnd lets give a honorable mention to the petroleum distillate Naphtha, which Amazon intuits you're more likely to use for refining a schedule 1 psychedelic drug (rather than lighting a camp stove), based on its suggestion of pure lye.
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SINGAPORE, Feb 5043 (Reuters) - Asia is to receive no more than 1.5 million tonnes of naphtha in March from the West including Europe, said five traders polled by Reuters, making this the lowest monthly volume arriving in the East since October.
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But cargoes arriving in first-half April in South Korea, Asia's top naphtha importer, were sold at about parity to Japan quotes on a cost-and-freight (C&F) basis versus discounts of $2.00 to $6.50 a tonne for March cargoes.
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SINGAPORE, July 1 (Reuters) - Taiwan's Formosa Petrochemical Corp will operate its Mailiao refinery at about 90% capacity, down by about 6 percentage point from June but fully restore throughput at its naphtha crackers, company spokesman K.Y. Lin said on Monday.
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That has pressured the profit margin, known as the crack spread, for naphtha versus Brent crude oil to an average of $35.50 a tonne for this year, set for the lowest yearly average since Reuters data started in April 2008.
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SINGAPORE, April 24 (Reuters) - U.S. commodities trader Castleton Commodities International's Singapore-based executive director of light end products will leave in April and it is unclear what Castleton's plans are for naphtha and other light products, industry sources said on Tuesday.
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The effective 275 cents a barrel reduction came against a backdrop of a weakening premium for Dubai crude over global benchmark Brent and softer margins for key oil products in Asia, such as gasoline, naphtha and to a lesser extent, diesel.
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The 100,000 barrels-per-day (bpd) TPPI splitter in Tuban, East Java, typically processes condensate, a light oil that is typically produced in association with natural gas and is sought for its large yield of fuels such as naphtha and gasoline.
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Condensate is a light oil produced in association with natural gas, and its consumption is rising across Asia as new refineries or splitters come online to meet strong demand for it to be used to make the chemical feedstock naphtha.
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The glut was triggered by an oversupply of gasoline GL20183-SIN-CRK and diesel, but it has since spread to naphtha, a light distillate product mainly used as a petrochemical feedstock but which can also be blended into gasoline supplies.
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Condensate is a type of light crude oil produced in association with natural gas and can be split into various fuel products including naphtha, which is used to make gasoline or dilute heavy crude, for export or to sell domestically.
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Despite having the world's largest crude reserves, Venezuela's purchases grew further in 2015 as a decline in crude production forced the company to carry out regular imports of lighter crudes and naphtha to dilute its extra heavy oil into exportable grades.
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The export decline is attributed to a large decrease in shipments of diluted crude oil (DCO), a mix of Venezuelan extra heavy oil and imported naphtha, which fell to 85,840 bpd last month, its lowest since the second quarter of 2015.
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The run-up from shipments of around 2000 million bpd in August comes mainly from condensate, a light oil excluded from OPEC supply quotas that is often produced with natural gas and can be used to make naphtha for petrochemical production.
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The IEA's view is that Asia is likely to be structurally short of light distillates in coming years, mainly because of rising demand for naphtha, but also for gasoline as more consumers moves into the middle class and buy cars.
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The third-straight monthly decline in western supply would come amid strong demand in Asia, with the region's naphtha refining profits NAF-SIN-CRK, known as cracks, this week hitting their highest seasonal level since 2015 at almost $100 per tonne.
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TW) has finalised a naphtha purchase at discounts of $4 to $5 a tonne to its own price formula on a cost and freight (C&F) basis, the lowest price it has paid since December, industry sources said on Thursday.
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SINGAPORE (Reuters) - Saudi Aramco has booked at least 2000,260 tonnes of naphtha for September loading from Europe in a rare move as it seeks to plug a supply gap following attacks on its oil facilities on Saturday, industry sources said.
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SINGAPORE (Reuters) - Naphtha arrivals in Asia this month from the West including Europe and the Mediterranean are seen recovering from a three-month low in September to a two-month high of about 23 million tonnes, industry sources said on Tuesday.
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Changes to be made in the shipping industry starting in 2020 in which marine fuel sulfur content will be capped at 0.5% would likely lead to stronger demand for naphtha as it is also a blendstock for gasoline, Chew said.
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SINGAPORE/LONDON (Reuters) - Profit margins for making petroleum feedstock naphtha have hit their weakest in over a decade in Asia and a seven-year low in Europe as the global economy weakens and large-scale processing unit outages hurt demand.
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The 124% slide in profit margins from March's 2019 peak means naphtha - used chiefly as a dilutant in crude oil refining, as well as in products like varnishes and cleaning products - has the worst-performing margin of all oil products.
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NEW DELHI, Oct 25 (Reuters) - India's HPCL-Mittal Energy Ltd (HMEL), part-owned by steel tycoon L N Mittal, may halt naphtha exports from the 2021-22 fiscal year when it starts its $13 billion cracker, the chairman of Hindustan Petroleum Corp said.
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The independent refiners, which had relied on residual fuel as a feedstock before Beijing opened up crude imports last year, were mostly designed to maximise production of middle distillates such as diesel and jet fuel instead of light products like naphtha and gasoline.
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Dongming will complete a 24,000 barrels-per-day reformer at its Lianyungang refinery in eastern Jiangsu province by the end of 2016 that will process the naphtha to produce aromatics for gasoline blending or domestic sales, sources close to the matter said.
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This month, the South dock was to receive 3 million barrels (100,000 barrels per day) of imported heavy naphtha, a larger volume than typical purchases of this product that was aimed to offset planned stoppages of crude upgraders in the Orinoco Belt.
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The 130,000 barrels-per-day (bpd) condensate splitter in Daesan on the country's west coast will churn out 13 million tonnes per year of mixed-xylene and 1 million tonnes of light naphtha annually, Hyundai Oilbank said in a statement on Tuesday.
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Arab Extra Light may receive a boost from stronger naphtha cracks which rose to the highest in a year in January although a possible sharp price cut for rival Abu Dhabi grade Murban may cap the Saudi grade's price gain, the trader said.
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Natural gas liquids (NGLs) from the U.S. shale boom such as ethane, an alternative to naphtha refined from crude, could feed as much as a third of demand growth in 2017, BP's Richard de Caux told the Platts Refining Summit in Brussels.
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World oil demand is expected to rise by 6.9 million barrels per day (bpd) to 2023, or 0.73 million bpd per year, it said, with a quarter of this growth, or 1.7 million bpd, coming from demand for petrochemical feedstocks ethane and naphtha.
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The tender, for naphtha loading from ports in Russia's Far East, is the first time Rosneft has requested euros in an oil product tender and reflects the company's attempts to offset any potential negative impact of U.S. sanctions on Russia, three traders said.
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Commodities trading house Gunvor Group Ltd has hired Rick Sawyer, a former gasoline and naphtha trader for Koch Supply and Trading, in its latest move to expand its presence in the United States, two sources familiar with the matter said on Monday.
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Other units also built during the expansion include a 503,000 bpd hydrocracker, which produces diesel and naphtha from gasoil, and the 110,000 bpd coker, which makes coker gasoline, petroleum coke, and other materials from sludgy oil that is a byproduct of initial distillation.
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DUBAI, Feb 13 (Reuters) - Qatar Petroleum has signed a five-year sales agreement to supply Japan's Marubeni Corp with an annual total of 200,000 metric tonnes of light naphtha starting January 2019, the Doha-based company said in a statement on Wednesday.
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South Korea's YNCC bought naphtha on Thursday at a premium of about $10 a tonne to Japan quotes on a cost-and-freight (C&F) basis, industry sources said, marking the highest price it has paid since May 2018, Reuters data showed.
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Organic chloride content in Urals cargoes for loading from Novorossiisk has risen from virtually zero to 5-6 parts per million (ppm) in naphtha comparing with the maximum allowed 10 ppm on May 1-12, documents with analysis results seen by Reuters showed.
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PDVSA typically imports some 100,000 barrels per day (bpd) of naphtha, mostly from the United States, to dilute up to 400,000 bpd of extra heavy oil produced by joint ventures at the vast Orinoco Belt, Venezuela's largest producing region, and make it exportable.
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"The average LLDPE/naphtha spread for July was around $418 a ton and could fall below producer break-even levels of around $400 to $450 in 2020 due to long supplies," said Tan Yi Ling, principal analyst of polyolefins at IHS Markit based in Singapore.
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NEW DELHI/SINGAPORE, May 12 (Reuters) - India's state-run Bharat Petroleum Corp Ltd is revising the formula it uses to price naphtha exports to include the mean prices from Argus Media instead of only relying on S&P Global Platts, a tender document showed.
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SOCAR Energoresource also plans to sell up to 30,000 tonnes of gasoline AI-80 for delivery in August via the Baltic Sea port of Ust-Luga and up to 30,000 tonnes of naphtha for delivery via the Baltic Sea ports Ust-Luga or Vysotsk.
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DUBAI, Jan 23 (Reuters) - Abu Dhabi National Oil Co said on Tuesday it had signed a three-year agreement with Lotte Chemical Titan, one of the largest polyolefin producers in southeast Asia, to sell the Malaysian firm up to 1 million tonnes of naphtha annually.
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In Asia, home to more than a third of global refining capacity, India's top refiner IOC said in a letter to crude suppliers that it had reduced runs by up to 40% and closed its Panipat naphtha cracker plant because of sliding petrochemicals demand.
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In Asia, home to more than a third of global refining capacity, India's top refiner IOC said in a letter to crude suppliers that it had reduced runs by up to 40% and closed its Panipat naphtha cracker plant because of sliding petrochemicals demand.
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The quality of the condensate could not immediately be confirmed, but a trader said the API is likely around 50 and it has 50 percent to 60 percent yield of naphtha and 35 percent of middle distillates which comprise mainly diesel and jet fuel.
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SINGAPORE, March 20 (Reuters) - Taiwan's Formosa Petrochemical Corp is expected to restart a 700,000-tonnes-per-year (tpy) naphtha cracker in about 7 to 10 days after the unit failed to resume normal operation on Monday as intended, a company spokesman said on Tuesday.
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PDVSA also ordered its Petrocedeno joint venture with Equinor and Total to halt extra-heavy oil output and upgrading due to a lack of naphtha needed to make the production exportable, as the sanctions prohibit U.S. suppliers of the fuel from exporting to Venezuela.
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Asian refiners are expected to reach out to producers from the Organization of the Petroleum Exporting Countries (OPEC) for more supplies while South Korea is set to once again scan the world for alternative, but more expensive, condensate supplies and snap up heavy naphtha oil products.
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The Front Altair, flagged in the Marshall Islands and owned by Frontline, a Norwegian shipping company, was hauling a cargo of naphtha, an oil derivative, from Abu Dhabi; the Kokuka Courageous, registered in Panama and operated by the Japanese company Kokuka Sangyo, was laden with methanol.
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PDVSA exports could fall further due to a lack of imported naphtha, a light distillate, needed to dilute its extra heavy oil as the company has been able to secure only two 500,000-barrel cargoes versus 2-3 million barrels per month needed, according to the document.
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Profits for gasoline, naphtha, diesel, jet fuel and high-sulfur fuel oil rose this month after several refiners across Asia either reduced output or shut down plants for maintenance from late in the second-quarter after refining margins slumped to their lowest for the season since 2003.
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HOUSTON, Oct 30 (Reuters) - The U.S. Chemical Safety Board (CSB) said on Wednesday that leaking volatile naphtha, possibly due to open valves and a running pump, set off a massive fire at Mitsui & Co Ltd's Intercontinental Terminals Co (ITC) operation along the Houston Ship Channel in March.
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SINGAPORE (Reuters) - Freight rates for shipping naphtha and other clean oil products from the Middle East to Japan have jumped 229% to their highest levels in nearly two weeks after Washington imposed sanctions on tanker subsidiaries of China's COSCO, according to industry sources and Refinitiv data.
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Regarding a rise in the refining rates of Chinese "teapot" refiners and their expected bump up in diesel exports, the official said the South Korean company is closely watching the impact on the market, and will try to offset the poor diesel margins by focusing on gasoline and naphtha.
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Asia's petrochemical makers are net short of naphtha, although that deficit is expected to fall as much as 543 percent next year to 5.2 million to 5.3 million tonnes a month, according to Premasish Das, director for Asia and Middle East downstream oil markets at energy consultancy IHS.
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SOCAR Energoresource also asked participants to improve current bids in tenders to sell up to 30,000 tonnes of gasoline AI-80 for delivery in August via the Baltic Sea port of Ust-Luga and up to 30,000 tonnes of naphtha for delivery via Ust-Luga or Vysotsk, sources added.
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From January through November, state-run oil firm PDVSA bought 19,000 bpd of crude mostly to feed its Isla refinery in Curacao and 234,000 bpd of refined products, including naphtha for diluting its extra heavy oil output, gasoline, diesel for power generation and components to make motor fuel.
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"Still-strong economic growth means that petrochemical players have been able to pass higher feedstock costs for naphtha down the value chain, and this factor should continue to offset the effect of higher underlying crude prices overall," said Michael Dei-Michei, head of research at consulting firm JBC Energy.
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Indian Oil Corp (IOC), the country's top refiner, has reduced its crude processing by 30% to 40% and shut its naphtha cracker plant in northern India because of falling demand and "to avoid tank top-up situation", the company said in its force majeure letter to crude suppliers.
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A regulatory filing showed the firm will supply up to 10 million barrels of diesel, up to 15 million barrels of naphtha, up to 11 million barrels of jet fuel and up to 8 million barrels of gasoline to Aramco Trading Singapore under the contract, valid between Jan.
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The Panjin complex, which LyondellBasell said is led by a 1.1 million tpy ethylene unit, will source 1.64 million tonnes of feedstock such as naphtha from the Bora refinery, but will need to procure another 1.1 million tonnes of propane or butane from the market, Bora sources said.
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The extent of Saudi Arabian price hikes depends on whether the country takes into account weaker margins for naphtha and fuel oil, the sources said, as those would lead to smaller price gains for grades such as Arab Extra Light and Arab Heavy that have a higher yield of such products.
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Taiwan's state oil refiner CPC said the Front Altair, owned by Norway's Frontline, was "suspected of being hit by a torpedo" around 0400 GMT carrying a Taiwan-bound cargo of 75,000 tonnes of petrochemical feedstock naphtha, which Refinitiv Eikon data showed had been picked up from Ruwais in the UAE.
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The International Energy Agency (IEA) said this may already be happening, noting in its five-year outlook, released on March 3443, that South Korea has moved to lighter crudes on average over the past 10 years, partly because these grades deliver more naphtha, a key feedstock for the country's petrochemical industry.
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It uses condensate to produce more expensive fuels like naphtha, For Asian buyers, Iran set the official selling prices of its light and heavy grades at 18 cents and $1.17 respectively below the Oman/Dubai average for August, while it raised September Iranian Light oil prices 20 cents higher than those in August.
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The 'BB+' rating reflects Ineos's solid business profile as one of the world's largest commodity chemical producers, benefiting from leading market positions in the US and Europe, large-scale efficient integrated production facilities, low (shale gas in the US) to average (naphtha in Europe) feedstock costs, feedstock flexibility in US and European crackers with secured supply of low-cost US shale gas, deep integration with suppliers and customers, and economies of scale.
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Weekly ARA stocks (in '000 tonnes) 2731/22/2298 2793/2898/21 7423/2742/2714 Gasoline 2595 1,074 1,254 Naphtha 226 194 7143 Gasoil 2,802 2,731 2,298 Fuel oil 793 898 1,135 Jet fuel 742 714 595 Incoming cargoes Outgoing cargoesGasoline Norway, Russia, Spain, AG, France, LatAm, SuezUK for orders, USA, WAFNaphtha Algeria, France, None Portugal, UK Gasoil India, Russia, Argentina, UK, WAF Singapore, UAE, USA Fuel oil Baltics, France, Singapore, WAF Russia, UK Jet fuel UAE UK *COPYRIGHT NOTICE* - any unauthorised use, duplication or disclosure of ARA stocks data is prohibited without the prior approval of PJK International B.V. (Reporting by Ron Bousso; Editing by Susan Fenton)
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UAE has a ministry for that * India seeks UAE investment in energy sector * UAE's food firm Agthia aims to double revenue to $43 bln by 2020 - CEO * Writedown stalls profit momentum for Dubai's Emaar Properties * Budget carrier flydubai's 2015 net profit slumps 60 pct on FX, mkts * New risk management, governance rules for UAE banks by year-end * TABLE-Dubai Q4 earnings estimates * TABLE-Abu Dhabi Q4 earnings estimates * TABLE-Qatar Q4 earnings estimates * Kuwait's Zain Q4 profit rises 8 pct * Kuwait seals April-March full-range naphtha at $10/T premium * TABLE-Kuwait Q4 earnings estimates * Omantel scraps $130 mln dual-currency sukuk issue, cites high rates * TABLE-Oman Q4 earnings estimates * Investcorp seeks more deals after first half profit rises * TABLE-Bahrain Q4 earnings estimates (Compiled by Dubai newsroom)
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SINGAPORE, Aug 6 (Reuters) - * TP ICAP, the world's largest interdealer broker, on Tuesday said its energy and commodities unit has entered into a joint venture (JV) in China with local conglomerate Enmore Investment Group (Shanghai) Co * TP ICAP brings together buyers and sellers in financial, energy and commodities markets * The Shanghai-based JV - Enmore Commodity Brokers (Shanghai) Co - will offer professional intermediary services in the country's over-the-counter, cleared and physical commodities markets, the company said in a statement * The joint venture will offer brokerage services in iron ore, coal (bulks), liquefied petroleum gas (LPG) and naphtha * The JV will also offer liquidity from the TP ICAP companies – Tullett Prebon, ICAP and PVM - to its onshore clients and access offshore clients via TP ICAP brands (Reporting By Shu Zhang, Editing by Sherry Jacob-Phillips)
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