Singapore's Bukom refinery has begun naphtha export business, its first such shipment in years, WPB says. The move comes after a long and unexpected shutdown of its naphtha cracker that had restricted output and supply for months.
Naphtha is a volatile hydrocarbon mixture that can be produced from processing crude oil. It is a vital feedstock for petrochemical facilities. Naphtha is primarily used to create olefins in crackers, which are basic building blocks necessary for plastics and other chemical derivatives. Its key positioning in supply chains for industries all over the globe, naphtha supply disruptions have the tendency to propagate into sectors.
Industry analysts and shipping reports indicate that some 35,000 metric tons of naphtha, or 311,500 barrels, were loaded aboard the vessel Oriental Aquamarine. The vessel is en route to South Korea, representing the refinery's first full-capacity shipment in five years. According to records, the last naphtha cargo to leave the facility was in late 2021, which underscores the newness of this development
Further information says that two more consignments of naphtha of open-specification, each having a volume of up to 60,000 tons, have also been reserved for future loading windows. However, commercial terms are not disclosed. A spokesperson for Aster Chemicals and Energy said that the company never gives any comments on specific business transactions, as per its policy.
This recent export boom has been caused by extended maintenance works on the Bukom cracker. The plant had originally been scheduled to get back to production in the first half of September, but technical issues have pushed this into infinity. The crisis has compelled the company to export feedstock volumes into the export pipeline rather than local processing.
Aster Chemicals and Energy, the owner of the facility, has a refinery capacity of 237,000 barrels per day besides a naphtha cracker with a 1.1 million tons per year capacity. The scale of operation reflects the importance of Bukom as a player in the regional energy industry, hence its export business being a notable phenomenon in the market.
By Bitumenmag
Crude, Bitumen, Naphtha
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