Mumbai: ONGC, MRPL offer March stems

Singapore, Feb 20: India's Oil and Natural Gas Corp (ONGC) and its Mangalore Refinery and Petrochemicals Ltd (MRPL) unit have offered to sell early and late-March cargoes of naphtha, according to tender documents seen on Tuesday.

ONGC offered a 35,000-tonne cargo from Mumbai loading Feb 28-March 2 or March 2-4. MPRL offered a 30,000-tonne cargo from New Mangalore loading March 23-25.

The ONGC tender closes on Feb. 21, while the MRPL tender closes on Feb. 27. Bids should remain valid for one day.

The cargoes will take India's total naphtha exports planned for March to just over 350,000 tonnes, still well below the average of more than 550,000 tonnes a month last year, contributing to tighter Asian market conditions.

ONGC's last tender to sell a Mumbai-loading cargo was awarded to South Korea's SK Corp. at an unknown price.

MRPL last week completed a tender to sell one cargo a month of naphtha in the March-September period at a premium of - a tonne above Middle East spot quotes, on a free on board basis.

Sentiment for the Asian naphtha market has been bullish this year, underpinned by tight supplies and higher demand by North Asian end-users. The naphtha premium over Brent crude and the premium for physical cargoes have soared to multi-year highs.

Reuters>