43286
Iran Squeezes Out Qatar in South Korea Condensate Market
Energy

Iran Squeezes Out Qatar in South Korea Condensate Market

South Korea, Asia's largest buyer of condensate, will step up purchases of the ultra light oil from Iran by more than 50% in June, two sources said, as competitive pricing squeezes out rival oil from Qatar.
Expected June shipments of condensate from Iran may reach at least 6 million barrels, or 200,000 barrels per day, said the sources. This would be a record level of imports, four times that in January when sanctions on Tehran were lifted, according to data from Korea National Oil Corp., Reuters reported.
In contrast, condensate imports from Qatar in April have fallen to 5.32 million barrels, down 19% from January, KNOC data showed.
Iranian condensate imports could gain further momentum in the fourth quarter, if Iran clinches a deal with Hyundai Chemical to supply the company's new splitter.
Talks between Hyundai Chemical and the National Iranian Oil Company on a term supply deal are underway, a third source familiar with the matter said.
South Korea, the world's fifth-largest crude buyer, has more than doubled its oil imports from Iran in the first four months of this year to about 248,000 bpd after western sanctions on Iran were removed in January.
Iran has ramped up exports much faster than analysts had expected, using international tankers to help ship its oil.
Two South Korean buyers, refiners SK Energy and Hanwha Total Petrochemical Company, are set to lift at least six million barrels of Iranian South Pars condensate in June, up from about 3 million to 4 million barrels in April and May, two sources with knowledge of the matter said.
A Hanwha spokesman said the refiner planned to import about 2 million barrels of Iranian condensate in June, as it was cheaper than oil from Qatar and the company wanted to diversify its sources of supply.
Iran's condensate was as much as $5 a barrel cheaper than Qatar's condensate at the start of the year, but the gap has since narrowed to $2 to $3, trade sources said. Both products are priced off Dubai crude.
"Compared with Qatar's, Iranian condensate is much cheaper. Naturally they'll want to take as much as possible," an oil trader said.
Hyundai Chemical, a joint venture between Hyundai Oilbank Company and Lotte Chemical could be Iran's next customer as it is due to start trial runs at a new 110,000 bpd splitter in Daesan on the country's west coast in August-September, trade sources said.
SPC Group could make up more than half of the unit's feedstock, one source said.
A Hyundai Oilbank spokesman said the facility, which splits condensate into fuels like naphtha for use in the petrochemicals industry, would be completed in the second half but declined to elaborate.

 

Short URL : http://goo.gl/yBSdBu
  1. http://goo.gl/PDjmK8
  • http://goo.gl/e6PMpq
  • http://goo.gl/yH8We3
  • http://goo.gl/nixlW7
  • http://goo.gl/svIHCk

You can also read ...

China on Pace for Record Solar Power Installations
China, the world’s biggest carbon emitter, is poised to...
Algiers, Tehran in Talks to Expand Energy Ties
Tehran is ready and willing to play a role in Algiers' joint...
Major repairs at Nouri plant are scheduled to start next month.
Nouri Petrochemical Company, one of Iran's top petrochemical...
IPO to Auction 41 Filling Stations in 14 Provinces
Iran Privatization Organization is scheduled to auction 41...
Zanganeh Says Most OPEC Members Back Extending Output Cuts
Oil Minister Bijan Namdar Zanganeh said on Monday that a...
Heavy oil from Iraq, Canada and Brazil are already replacing Venezuelan barrels.
As Venezuela’s dilapidated energy sector struggles to pump...
Crude Prices Lose Steam
Oil eased on Monday, as traders were reluctant to take on big...
India's Import of US Coal  Quadruples
India’s coal imports from North America quadrupled to 2.1...

Trending

Googleplus