Taiwan’s Formosa taps on LPG on lofty naphtha prices

08 March 2011 06:16  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) has switched partially to using liquefied petroleum gas (LPG) as feedstock for its three crackers in Mailiao amid soaring naphtha prices, traders said on Tuesday.

Now the FPCC crackers were running 90% on naphtha and 10% on LPG, they added.

“Previously the feedstock was 100% on naphtha but naphtha prices are too high because of crude,” one trader said.

LPG is now a much cheaper feedstock than naphtha.

Naphtha cracker operators consider using LPG as feedstock when LPG prices are around 90-95% of naphtha values.

LPG prices were valued at $872.93-882.93/tonne (€628.51-635.71/tonne) on Tuesday midday, or around 88% of naphtha values, traders said.

Meanwhile, naphtha prices were $1001-1004/tonne CFR (cost and freight) Japan, holding above the $1,000 tonne mark amid robust global crude futures and the crisis in OPEC producer Libya, ICIS data showed.

($1 = €0.72)

For more information on naphtha, visit ICIS chemical intelligence

By: Felicia Loo

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