India’s MRPL delays naphtha shipment to S Korea’s SK Energy

16 April 2012 07:54  [Source: ICIS news]

SINGAPORE (ICIS)--India's Mangalore Refinery and Petrochemicals Ltd (MRPL) has been forced to delay the shipment of 35,000 tonnes of naphtha to South Korea’s SK Energy, several traders said on Monday.

According to the traders, the delay arose as MRPL had to shut two-thirds of its 150,000 bbl/day refinery shutdown because of a shortage in water supply, they added.

The partial shutdown at MRPL resulted in lower naphtha production, the traders said.

SK Energy bought two April cargoes from MRPL previously at premiums of $38-$39/tonne (€28.8-29.6/tonne) to Middle East quotes on a free-on-board (FOB) basis, the traders said.

The cargo which has been delayed was scheduled for loading on 14-16 April, while the other cargo has been shipped on 5-7 April, they added.

SK Energy declined to comment on the matter.

MRPL said in a statement on the Bombay Stock Exchange on 12 April that the district authorities had reduced the company’s supply of water from the Nethravathi river before completely cutting it on 11 April.

The company added that it may incur additional charges on unloading its crudes and loading of products as a result.

MRPL could not be reached for further comment.  

($1 = €0.76)

By: Quintella Koh
+65 6780 4372

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