MRPL to delay shipping naphtha after shutdown
MRPL to delay shipping naphtha after shutdown
Singapore: Mangalore Refinery and Petrochemicals Ltd (MRPL) will delay shipment of 35,000 tonnes of naphtha to South Korea’s top refiner, SK Energy, after it had to shut about two-thirds of its 150,000 barrels per day plant, traders said on Friday.
Traders said the shipment delay could range from a few days to a week.
“The market has firmed up a bit more due to this news," said a Singapore-based trader.
SK Energy had bought two April cargoes from MRPL previously at premiums of $38-$39 a tonne to Middle East quotes on a free-on-board (FOB) basis, of which one cargo was to be shipped on 14-16 April and the other on 5-7 April.
“The other cargo was unaffected as it already left the port in early April," said a trader.
Operations of MRPL, a subsidiary of Oil and Natural Gas Corp., were hit as local authorities initially cut and then stopped water supply to the plant from the nearby Nethravathi river from Wednesday, it said in a stock exchange filing.
The supply of middle distillates from the refinery however is not expected to be disrupted, as the company had already planned maintenance at its hydrocracker, traders said.
It skipped exports of diesel and jet fuel for the second half of April and is loading 76,000 tonnes of gasoil and jet fuel in the first half of May.
It is unclear if these cargoes will be disrupted.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!