ONGC sells naphtha cargo at $ 20-$ 23 premium

Singapore, Feb 26: Oil and Natural Gas Corp (ONGC) has awarded a tender to sell a 35,000-tonne naphtha cargo for March 2-4 or March 6-8 loading at a - a tonne premium to the Middle East spot quotes, a trading source said on Monday.

Details on the buyer were not immediately available.

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

The Asian petrochemical feedstock market has picked up sharply this year, as Indian exports have fallen back below 500,000 tonnes for February and March loadings against last year's average monthly shipments of about 520,000 tonnes.

Asian naphtha demand also has in creased due to expanded naphtha-consuming units and less cracker turnarounds than last year, while petrochemical makers have been running their crackers at high rates thanks to strong petrochemical margins.

Naphtha is the feedstock used to produce ethylene and propylene, the basic building blocks for the chemical sector.

Reuters