Availability of Naphtha in Asia:

Buying spree for H2 Mar arrival spot naphtha continued to emerge from South
Korean end-users, with SK Energy and Hanwha Total both heard seeking some volumes of heavy
full-range naphtha (HFRN). SK Energy was heard to have secured some barrels of HFRN for delivery
into Ulsan at premiums of slightly below $6.00/mt to Japan quotes, while Hanwha Total was heard
to have locked in some HFRN volumes for delivery into Daesan at plus $6.00/mt or slightly above,
according to trade sources. The latest transaction levels for H2 Mar arrival HFRN cargoes by SK
Energy and Hanwha Total would be slightly lower compared with the H1 Mar arrival deals for HFRN,
which were heard done at premiums of around $7.00-8.00/mt to Japan quotes, OPIS record shows.
Based on the latest deal levels for H2 Mar arrival cracker-feed naphtha and HFRN, the spread
between these two grades of naphtha has narrowed further to minus $2.50/mt, according to OPIS
assessment. The spread between HFRN and OSN has been remaining on a negative territory since
Feb 1, reflecting the strength in the current paraffinic naphtha market in Asia. The month-to-date
mean ratio of naphtha swaps was seen at around 106% for H2 Mar, which makes it uneconomic to
crack into olefins product. Over in Japan, the sustained rally in naphtha cracks has prompted the
country’s refiners to increase their naphtha production, which increased to 3.24 million barrels for
the week ended on Feb 4, a sharp increase of 20% on-week, according to the Petroleum Association
of Japan (PAJ). The yield of naphtha rose two percentage points to around 14%, while the naphtha
stocks also increased 7.5% on-week to 10.15 million barrels. The sharp increase in Japanese
refiners’ naphtha production is in line with the cracker run-rates buy the country’s petrochemical end-
users. The source added that bullish trends in C2 to C4, as well as benzene prices for the prompt
month have led the country’s petrochemical producers to maintain high cracker operating rates.

PAKISTAN exports 900,000 tons per year of naphtha, which is a

surplus product of our refineries. Due to low crude oil price, the
international price of naphtha has reduced considerably, and our
surplus naphtha has now become a viable fuel for power plants

1. Naphtha provides about 10per cent of the fuel for power plants in India. So,
why is all the surplus naphtha of Pakistan exported?

2. The price of naphtha is currently 30 per cent cheaper than LNG (liquefied
natural gas). Indian power plants operating on LNG have recently switched to
naphtha. So, in these times of shortage of natural gas in Pakistan, some power
plants should similarly switch to naphtha.
 As

Market Low High Mean Change

CFR JAPAN 505.50 506.50 506.00 -10.00

FOB SINGAPORE ($/bbl) 54.70 55.70 55.20 -1.10

FOB ARAB GULF LR 1 486.50 487.50 487.00 -9.75

FOB ARAB GULF LR 2 492.00 493.00 492.50 -10.00

Spread/Differential ($/mt)

Price Low High Mean Change

NAP-BRENT CRACK 101.38 102.38 101.88 -2.95

INTER-MONTH SPREAD 8.00 9.00 8.50 0.00

CFR SPOT DIFFERENTIAL 8.00 9.00 8.50 0.00

FOB SPOT DIFFERENTIAL 9.50 10.50 10.00 -4.00

SURVEY OF OPIS Asia Naphtha Report Naphtha vs Propane vs LPG

Open Spec Naphtha Mid-Day Paper ($/mt)

Laycan Low High Mean Change

525
H2 Mar 510.50 511.50 511.00 -16.00

H1 Apr 506.00 507.00 506.50 -16.00

H2 Apr 502.00 503.00 502.50 -15.50 475

Open Spec Naphtha Close Paper ($/mt)

Laycan Low High Mean Change

H2 Mar 512.00 513.00 512.50 -10.00 425

H1 Apr 507.50 508.50 508.00 -10.00

H2 Apr 503.50 504.50 504.00 -10.00

375
Northwest Europe Mid-Day Naphtha Swap ($/mt)

Laycan Low High Mean Change H2 Mar H1 Apr H2 Apr

Mar 481.75 482.75 482.25 -16.00 Naphtha Propane LPG

Apr 478.00 479.00 478.50 -15.25

May 474.25 475.25 474.75 -15.00

Northwest Europe Close Naphtha Swap ($/mt)

Laycan Low High Mean Change

Mar 484.75 485.75 485.25 -12.00

Apr 481.00 482.00 481.50 -11.25

May 477.25 478.25 477.75 -11.00

Naphtha East-West Spreads ($/mt)

Laycan Low High E-W Change

Mar 12.75 13.75 13.25 0.00

Apr 12.75 13.75 13.25 0.00

May 12.75 13.75 13.25 0.00

FOB Singapore Mid-Day Naphtha Swap ($/bbl)

Laycan Low High Mean Change

Feb 54.75 54.85 54.80 -1.75

Mar 53.85 53.95 53.90 -1.70

Apr 53.20 53.30 53.25 -1.75

FOB Singapore Close Naphtha Swap ($/bbl)

Laycan Low High Mean Change

Feb 54.95 65.05 55.00 -1.100

Mar 54.05 24.15 54.10 -1.100

Apr 53.50 23.60 53.55 -1.000

 Naphtha Cracking Viability and
feasibility in asia
Naphta cracking is a viable project in
akistam. Because it has a large
dependency in the merged area of
polymer, pharmaceuitical industry. An
dwithin it 220$ billion production, the
dollar rate is rising creating the
economic edge of measuring the
scenario of a demand that compares the
two side of stories. The commercial
project has been equipped with the stte of
art technologies comparing the
production and consumption of naptha
cut off obtained straight up from arabian
oil refinery. The demand might end up
with the producing maching
requirements seizing the deficit.
However, complete control over the
entire project has benn attained using
the advanced hybrid redoxy oxy cracking
scheme. The emergence of modification
in low producing and minmum half life
cracked naptha has been enrooted to
emerges as a pyramid of contradictory
statement. It serves a s state of art
machinery. Thus, providing the basic
consequences and effects of modelling
and designing a process using Aspen
Hsyss and Plus.