Mitsubishi Chem to cut light naphtha imports

19 September 2007 09:32  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s largest olefins producer Mitsubishi Chemical plans to reduce its light naphtha imports from the fourth quarter of 2008 after its new joint venture condensate splitter commences operations in January, a company source said on Wednesday.

“We won’t need to buy so much light naphtha from the spot market because we can obtain light naphtha supply from our new domestic condensate splitter next year,” the source said.

Japan Energy and Mitsubishi Corp formed a joint venture, called Kashima Aromatics, to build a 60,000 bbl/day condensate splitter which mainly uses condensate as feedstock. The plant is expected to start operations in January 2008.

The plant will produce 850,000 kilolitres/year of light naphtha, 420,000 tonnes/year of paraxylene and 190,000 tonnes/year of benzene.

Mitsubishi Chemical regularly purchases two-to-three 25,000-tonne light naphtha cargoes from the spot market each month for its Kashima and Mizushima crackers.

“Depending on how smooth the condensate splitter’s operations and how well the output will be, we may not even buy any more (light naphtha) cargoes from the spot market,” the source said.

The condensate feedstock for the new splitter will be supplied by Mitsubishi Corp, he added.

Kashima Aromatics' condensate splitter will be the second such unit to be built in Japan. The first is operated by Nippon Oil Corp.

By: Nurul Darni
65 6789 4359

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