FPCC buys first term naphtha supplies at a discount

06 July 2007 08:48  [Source: ICIS news]

SINGAPORE (ICIS news)--Formosa Petrochemical Corp (FPCC) has bought its first term naphtha supplies via a year’s contract covering October 2007 to December 2008 delivery at a discount, a company source said on Friday.

 

The Taiwanese petrochemical major had bought a total of 375,000 tonnes of term naphtha from five Europe-based traders at a discount of $1.50/tonne to the Japan spot quotes on a CFR (cost and freight) basis, in order to meet the demands of its newest No 3 cracker.

 

Under the contract, about 75,000 tonnes of naphtha would be delivered to FPCC’s No 3 cracker in Mai Liao each quarter, the source said.

 

Asia’s largest cracker is operating at full capacity for the first time since it started up on 25 May. It had been running at 80-85% for the past month.

 

The new unit used naphtha as its main feedstock but also had the flexibility to switch to alternatives such as liquefied petroleum gas (LPG), kerosene or gasoil, he said.

 

“Right now, it is using 100% naphtha feedstock. But we will conduct further performance tests at the facility to see if it can receive LPG or other feedstocks easily,” the source added.

 

With the successful start-up of its new cracker, it will require approximately 300,000 tonnes of naphtha each month.

 

FPCC last purchased a July delivery naphtha cargo ahead of the start-up of its No 3 cracker, the company’s second such deal in three months.

 

By: Nurul Darni
65 6789 4359

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