11 April 2008 07:04 [Source: ICIS news]
SINGAPORE (ICIS news)-- Several heavy naphtha end-users in northeast Asia are turning to condensate instead of heavy naphtha as a feedstock due to poor margins from the aromatics market, industry sources said on Friday.
However, sourcing high quality condensate to substitute heavy naphtha was an uphill task as condensate supplies remained limited, a buyer said. “We should be glad if we can able to get 30,000 tonnes to load onto a medium range (MR) sized vessel”.
“Due to the difficulty of sourcing good condensates, we are able to substitute only half of requirements. Of course, we will like to increase our purchases but we can’t,” another end-user said.
Since prices of condensates are usually pegged to either naphtha or crude formula prices, they could vary widely. In general, condensate could be $5/tonne lower than heavy naphtha.
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Condensates are usually sourced from the Middle East, southeast Asia or Australia and suppliers include Qatar’s Tasweeq, Indonesia’s BPMIGAS, Vietnam’s Petechim and Malaysia’s Petronas,
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