MOSCOW (MRC) -- India's Oil and Natural Corp (ONGC) will not export naphtha from Hazira most will be consumed as fuel by a cracker operated by ONGC Petro additions Ltd (OPaL), reported Plastemart with reference to sources in Reuters.
OPaL, promoted by ONGC and co-promoted by Gujarat State Petroleum Corp (GSPC) and GAIL (India) Ltd, operates a cracker which has a capacity of 1.1 mln tpa of ethylene.
"We are supplying all of the naphtha to OPaL. We will export if our laycans do not match with that of OPaL's," said a company source, adding that OPal is working out its strategy to source some quantity from the market as well. Production at OPaL has recently been ramped up to full capacity, hence ONGC's exports have seen a pause this year. ONGC Hazira was exporting one to two 34,500 ton cargoes a month in 2016 but this stopped this year, based on Reuters data.
As MRC wrote earlier, in April 2016, India-based JBF Petrochemicals signed a long-term agreement with ONGC Mangalore Petrochemicals Ltd. (OMPL) for the supply of paraxylene, the main raw material in the production of purefied terephthalic acid (PTA). JBF Petrochemicals is in the process of commissioning a PTA plant with 1.25 MMtpy of capacity, using technology from BP, at Mangalore. The paraxylene will be supplied by OMPL to JBF through a dedicated pipeline of about 3 kilometers in length. The agreement includes the supply of paraxylene (PX) over a period of 10 years, with a provision to further increase the period of supply by another 5 to 10 years by mutual consent. The deal assures the long-term supply of raw material for the PTA project, according to JBF officials.
mrcplast.com