PetroVietnam exports first propylene cargo to Indonesia

23 October 2009 05:40  [Source: ICIS news]

SINGAPORE (ICIS news)--State-run PetroVietnam’s new Fluidised Catalytic Cracker (FCC) is slated to export its first propylene cargo on Friday, which will be bound for Indonesia, market sources said.

The shipment was sold on a formula based on published prices and not on a spot basis, they said.

Operations at the 150,000 tonne/year FCC unit located at Dung Quat, central Vietnam, had not been able to start up as scheduled due to numerous technical delays for the past six months, sources close to the company said.

All propylene exports from PetroVietnam were expected to be pressurised cargoes of around 1,500 tonnes, which would mean as many as eight lots could be exported each month should the FCC unit run at full rates.

Propylene offtake from the FCC unit is handled by Japanese trading house Marubeni Corp, which will facilitate exports to buying outlets in Indonesia, the Philippines and China.

PetroVietnam’s exports are expected to be warmly welcomed by buyers due to the tight regional supply balance for propylene. However, exports could dry up once PetroVietnam starts a downstream polypropylene (PP) unit slated for the second quarter of 2010, market sources said.

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By: Steve Tan
+65 6780 4359

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