SINGAPORE: Premiums for May-loading regional condensate are expected to fall amid weak naphtha refining margins and the possibility of prompt offers for Australian grades in the wake of reduced operating rates at a regional condensate splitter.
Operating rates at the 100,000-barrel-per-day (bpd) TPPI
condensate splitter in Tuban, Indonesia, have been cut as the plant's platformer undergoes further maintenance that is expected to be complete in mid-March, three trading sources said. A platformer is a unit that allows more gasoline production.
It is not immediately clear if the condensate splitter has been shut completely or is running at lower rates.
The TPPI condensate splitter, which typically runs between 80 and 90 percent of its nameplate capacity, had been facing issues with its platformer since January.
The issues forced the unit to reduce operating rates to around 50 percent in the second half of February as the platformer underwent maintenance.
Run rates at the plant were said to have climbed back to around 70 percent last week but appeared to have fallen since then, three industry sources said.
The issues at the Indonesian plant have resulted in possible cargo diversions, two traders said, citing offers from a trading firm that supplies condensate to TPPI. Details of these offers could not be confirmed.
Qatari state marketer Qatar Petroleum also issued its monthly condensate sell tender on Wednesday, offering both Deodorized Field Condensate (DFC) and Low Sulphur Field Condensate (LSC) for May loading. The tender will close next week.
A 650,000-barrel cargo of Australian ultra-light Cossack crude is due for May 5-9 loading and will be marketed by BHP Billiton, according to the grade's preliminary loading programme. No Cossack crude was available for loading in April.
Brent's premium to Dubai swaps, or Brent-Dubai Exchange of Futures for Swaps (EFS), was at $1.55 per barrel, down 1 cent for May.
Comments
Comments are closed.