You are here: Home » Companies » News
Business Standard

RIL to halt heavy naphtha exports after start of its paraxylene plant

Plant would require 2.7 million tpy of heavy naphtha - reducing its ability to export the product

Reuters  |  New Delhi/Singapore 

RIL to halt heavy naphtha exports after start of its paraxylene plant

Industries (RIL), owner of the world's biggest refining complex, will halt heavy in 2017/18 after the full-scale start of its 2.2 million tonnes per year (tpy) plant, four people with knowledge of the matter said.

The plant, located in western Gujarat state, is currently operating at about 800,000 tpy capacity, and the rest of the project's capacity is set to come on stream before the end of this financial year (FY) in March, one of the people said.

The petrochemical is primarily used in polyester and polyethylene terephthalate (PET).

The main feedstock for is heavy naphtha, a crude-based product which can also be converted into reformates, a blending component for high-octane gasoline.

At full capacity, Reliance's plant would require 2.7 million tpy of heavy — reducing its ability to export the product and making it likely to resort to imports of heavy naphtha, the trade sources said.

The people declined to be identified because they were not authorised to discuss the matter publicly.

did not immediately respond to Reuters' requests for comments.

Traders said they expect to import about two medium-range vessel size a month of heavy if they do have to buy the product. It currently heavy on a sporadic basis, they said.

"Previously, Asia was not getting much heavy but these days, Russia is able to supply heavier grades of naphtha," said one Singapore-based trader.

will continue exporting paraffinic naphtha, which has a minimum 70 per cent paraffin content and is used to make ethylene, a plastics feedstock.

Of India's total 730,000 tonnes of shipped out in January, over 220,000 tonnes were from and most of it in paraffinic form.

While the short-term supply outlook for naphtha, in general, is tight in Asia due to India cutting back exports, refinery maintenance, outages and a lack of alternative feedstock to replace naphtha, the longer-term outlook is for oversupply.

"The global market for will be over-supplied until at least 2020," IHS Markit said in a report, projecting global demand for (including natural gasoline) to be 1.18 billion tonnes in 2017.

But it said some markets could become short of after 2020, particularly heavy if investments were to fall off now.

RECOMMENDED FOR YOU

RIL to halt heavy naphtha exports after start of its paraxylene plant

Plant would require 2.7 million tpy of heavy naphtha - reducing its ability to export the product

Paraxylene plant would require 2.7 million tpy of heavy naphtha - reducing its ability to export the product

Industries (RIL), owner of the world's biggest refining complex, will halt heavy in 2017/18 after the full-scale start of its 2.2 million tonnes per year (tpy) plant, four people with knowledge of the matter said.

The plant, located in western Gujarat state, is currently operating at about 800,000 tpy capacity, and the rest of the project's capacity is set to come on stream before the end of this financial year (FY) in March, one of the people said.

The petrochemical is primarily used in polyester and polyethylene terephthalate (PET).

The main feedstock for is heavy naphtha, a crude-based product which can also be converted into reformates, a blending component for high-octane gasoline.

At full capacity, Reliance's plant would require 2.7 million tpy of heavy — reducing its ability to export the product and making it likely to resort to imports of heavy naphtha, the trade sources said.

The people declined to be identified because they were not authorised to discuss the matter publicly.

did not immediately respond to Reuters' requests for comments.

Traders said they expect to import about two medium-range vessel size a month of heavy if they do have to buy the product. It currently heavy on a sporadic basis, they said.

"Previously, Asia was not getting much heavy but these days, Russia is able to supply heavier grades of naphtha," said one Singapore-based trader.

will continue exporting paraffinic naphtha, which has a minimum 70 per cent paraffin content and is used to make ethylene, a plastics feedstock.

Of India's total 730,000 tonnes of shipped out in January, over 220,000 tonnes were from and most of it in paraffinic form.

While the short-term supply outlook for naphtha, in general, is tight in Asia due to India cutting back exports, refinery maintenance, outages and a lack of alternative feedstock to replace naphtha, the longer-term outlook is for oversupply.

"The global market for will be over-supplied until at least 2020," IHS Markit said in a report, projecting global demand for (including natural gasoline) to be 1.18 billion tonnes in 2017.

But it said some markets could become short of after 2020, particularly heavy if investments were to fall off now.

image
Business Standard
177 22

RIL to halt heavy naphtha exports after start of its paraxylene plant

Plant would require 2.7 million tpy of heavy naphtha - reducing its ability to export the product

Industries (RIL), owner of the world's biggest refining complex, will halt heavy in 2017/18 after the full-scale start of its 2.2 million tonnes per year (tpy) plant, four people with knowledge of the matter said.

The plant, located in western Gujarat state, is currently operating at about 800,000 tpy capacity, and the rest of the project's capacity is set to come on stream before the end of this financial year (FY) in March, one of the people said.

The petrochemical is primarily used in polyester and polyethylene terephthalate (PET).

The main feedstock for is heavy naphtha, a crude-based product which can also be converted into reformates, a blending component for high-octane gasoline.

At full capacity, Reliance's plant would require 2.7 million tpy of heavy — reducing its ability to export the product and making it likely to resort to imports of heavy naphtha, the trade sources said.

The people declined to be identified because they were not authorised to discuss the matter publicly.

did not immediately respond to Reuters' requests for comments.

Traders said they expect to import about two medium-range vessel size a month of heavy if they do have to buy the product. It currently heavy on a sporadic basis, they said.

"Previously, Asia was not getting much heavy but these days, Russia is able to supply heavier grades of naphtha," said one Singapore-based trader.

will continue exporting paraffinic naphtha, which has a minimum 70 per cent paraffin content and is used to make ethylene, a plastics feedstock.

Of India's total 730,000 tonnes of shipped out in January, over 220,000 tonnes were from and most of it in paraffinic form.

While the short-term supply outlook for naphtha, in general, is tight in Asia due to India cutting back exports, refinery maintenance, outages and a lack of alternative feedstock to replace naphtha, the longer-term outlook is for oversupply.

"The global market for will be over-supplied until at least 2020," IHS Markit said in a report, projecting global demand for (including natural gasoline) to be 1.18 billion tonnes in 2017.

But it said some markets could become short of after 2020, particularly heavy if investments were to fall off now.

image
Business Standard
177 22