Condensate Becoming New Appetite Due to NE Asia Heavy Naphtha Poor Margin

Several heavy naphtha end-users in northeast Asia are turning to condensate instead of heavy naphtha as a feedstock due to poor margins from the aromatics market despite uptight and limited condensate supplies. Condensate prices are usually pegged to either naphtha or crude formula prices generally $5/tonne lower than heavy naphtha.

Most of traded condensates will go to the hands of buyers from China, South Korea, Japan and Taiwan. Condensate supply come from the Middle East, southeast Asia or Australia via ships. Companies that supply condensates are many, among them are Qatar’s Tasweeq, Indonesia’s BPMIGAS, Vietnam’s Petechim and Malaysia’s PETRONAS.