ID :
99988
Thu, 01/14/2010 - 15:35
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Shortlink :
https://oananews.org//node/99988
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Adnoc slashes naphtha exports to Asia
Singapore - Abu Dhabi National Oil Co (Adnoc) has unexpectedly cut splitter naphtha export volumes for January-February lifting by around 10 per cent on lower condensate splitter runs, compounding Asia's supply woes, traders said yesterday.
It also deferred some shipments to Asian customers, they said, coming at a time of disruptions to supplies from other Middle Eastern producers, which are keeping the market supported along with robust demand for the first two months.
Cracks — premiums/losses obtained from refining Brent crude into naphtha — rose to their highest in almost three weeks at $170.63 (Dh626) a tonne on Monday, before easing to $170.03 on Tuesday. Adnoc supplies around 4 million tonnes a year of splitter naphtha, made from condensates, and a total of about 2.6 million tonnes of low-sulphur and paraffinic grade.
The state-owned company has the option to provide 5 per cent more, or less, of the contracted volumes with Asian buyers, depending on market fundamentals.
"But they had cut 10 per cent, instead of 5 per cent, of the contracted volumes," a trader said.
In some cases, cargoes were also postponed to a later date, although they will still be delivered within the same month, traders added.
Traders attributed the lower supplies to decreased runs at its condensate splitters caused by limited feedstock. An Adnoc source declined comment when contacted.
It operates two condensate splitters with a total nameplate capacity of 280,000 barrels per day (bpd) in Ruwais refinery. It is not immediately clear what the run rates are.
Several traders had been expecting Adnoc to increase its naphtha supplies from the first quarter when it will expand its gas fields, from where additional condensates will be fed into its existing splitters.
"But from what I know, their new naphtha supplies will only be exported from the second quarter," another trader said.
Adnoc is set to have an additional 1.2 million tonnes per year of splitter naphtha after it completes the expansion at its gas field.
It also deferred some shipments to Asian customers, they said, coming at a time of disruptions to supplies from other Middle Eastern producers, which are keeping the market supported along with robust demand for the first two months.
Cracks — premiums/losses obtained from refining Brent crude into naphtha — rose to their highest in almost three weeks at $170.63 (Dh626) a tonne on Monday, before easing to $170.03 on Tuesday. Adnoc supplies around 4 million tonnes a year of splitter naphtha, made from condensates, and a total of about 2.6 million tonnes of low-sulphur and paraffinic grade.
The state-owned company has the option to provide 5 per cent more, or less, of the contracted volumes with Asian buyers, depending on market fundamentals.
"But they had cut 10 per cent, instead of 5 per cent, of the contracted volumes," a trader said.
In some cases, cargoes were also postponed to a later date, although they will still be delivered within the same month, traders added.
Traders attributed the lower supplies to decreased runs at its condensate splitters caused by limited feedstock. An Adnoc source declined comment when contacted.
It operates two condensate splitters with a total nameplate capacity of 280,000 barrels per day (bpd) in Ruwais refinery. It is not immediately clear what the run rates are.
Several traders had been expecting Adnoc to increase its naphtha supplies from the first quarter when it will expand its gas fields, from where additional condensates will be fed into its existing splitters.
"But from what I know, their new naphtha supplies will only be exported from the second quarter," another trader said.
Adnoc is set to have an additional 1.2 million tonnes per year of splitter naphtha after it completes the expansion at its gas field.
