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HPCL invokes force majeure on Iraqi oil

April 02/2020

MOSCOW (MRC) -- Indian refiner Hindustan Petroleum Corp Ltd has issued a force majeure notice to Iraqs Oil Marketing Company (SOMO) to cancel two oil cargoes as local fuel demand is hit by a lockdown to stem spread of coronavirus, reported Reuters with reference to an industry source.

State-run HPCL was scheduled to lift these cargoes containing one million barrels each in the first half of April, this source said. The source did not wish to be identified citing confidentiality.

No immediate comment was available from HPCL. SOMO could not be immediately reached for comments.

HPCL is the third Indian company to invoke force majeure for crude supplies. Last week two India refiner- Indian Oil Corp and Mangalore Refinery and Petrochemicals Ltd have invoked force majeure on crude imports mainly from middle east.

Many Indian refiners have reduced crude processing as fuel demand drops.

HPCL has cut crude processing at its Mumbai refinery by 10%, while it is operating its Vizag refinery at 100% capacity to feed southern Indian market. 

As MRC informed before, India's private-sector Haldia Petrochemicals (HPL) has shut its naphtha cracker, after ports in the country declared force majeure to prevent the spread of the coronavirus. The petrochemical maker operates a 670,000 tonnes per year cracker, which on average would need more than 150,000 tonnes of naphtha feedstock a month if the unit is at full capacity, based on Reuters calculations.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Haldia Petrochemicals Ltd is a modern naphtha based petrochemical complex at Haldia, West Bengal, India. Haldia has played the role of a catalyst in emergence of more than 500 downstream processing industries in West Bengal with a capacity to process more than 3,50,000 TPA of polymers, among which are PE and PP.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, LLDPE, crude and gaz condensate, homopolymer PP, propylene, HDPE, ethylene, petrochemistry, Haldia Petrochemicals, India, Iraq, Russia.
Category:General News
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