Haldia Petrochemicals Diversifies Naphtha Sources Amid Disruptions in Iranian Supplies and Shipping Routes

India's Haldia Petrochemicals Diversifies Naphtha Supplies Amid Middle East Conflict

India's Haldia Petrochemicals (HPL) has turned to Oman to make up for a shortfall in naphtha supplies from Kuwait and Qatar linked to the Middle East conflict. According to shipping data and an industry source, Oman's loading ports are located outside the conflict zone and have largely been unaffected by the war.

HPL has secured a shipment of 23,000 metric tons (201,000 barrels) of naphtha from Oman. The Medium-range tanker Rarity loaded the cargo late in March and discharged it at the Haldia terminal on April 13, as tracked by consultancy Energy Aspects.

The company is actively exploring multiple sourcing options for naphtha imports and continuously monitoring the evolving situation. Haldia Petrochemicals buys naphtha primarily from the Middle East via long-term contracts with Kuwait Petroleum Corporation (KPC) and Qatar Energy, and partly from local refiners. The company's 700,000 ton-per-year ethylene cracker in India's Haldia in the eastern state of West Bengal relies heavily on these imports.

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KPC declared force majeure on shipments of crude oil and refined products on April 17, as shown in a notice reviewed by Reuters. Qatar Energy indicated that it was facing problems in loading naphtha cargoes soon after announcing force majeure at its LNG facility, an Asian buyer said. HPL is also trying to buy small parcels of naphtha from the United Arab Emirates, the first source said. The company is majority owned by U.S.-based private equity firm The Chatterjee Group (TCG).