Naphtha is a flammable liquid hydrocarbon mixture. Mixtures labeled naphtha have been produced from natural gas condensate, petroleum distillates, and the distillation of coal tar and peat. In different industries and regions naphtha may also be crude oil or refined products such as kerosene. Mineral spirits, also historically known as “naphtha”, is not the same chemical.
Naphtha stands out as an exceedingly versatile commodity with various applications. Serving as a fundamental feedstock for the petrochemical industry, it is also utilized in blending with gasoline and as a widely employed diluent.
Our operations revolve around the sourcing, trading, and transportation of naphtha and condensates, primarily catering to the needs of the petrochemical industry.
Refineries emerge as the primary suppliers of naphtha, with a significant portion of the traded market sourced from less integrated refineries. In contrast, more integrated refineries both produce and utilize naphtha as a feedstock for both petrochemical and gasoline purposes.
Geographically, the Middle East stands out as the predominant source of naphtha. Additionally, regions such as the Mediterranean, India, Africa, and South America contribute as net suppliers. Major consuming countries typically boast substantial interests in petrochemicals, with Japan, Korea, and Taiwan emerging as significant importers.
PRODUCTS
Naphtha can be found in coal tar, shale gas or refined petroleum. It is a light, highly flammable mixture with multiple uses.
There are three main types. Light naphtha is mainly used for the petrochemical industry, but can also be useful in gasoline blending. Medium naphtha meets the full range of uses, including gasoline blending, reforming or petrochemical uses. Heavy naphtha is mainly used for reforming or production of gasoline components like reformate aromatics.
There is a close pricing relationship between naphtha and other markets. Naphtha is a key constituent for gasoline. It can account for as much as 30% of the refined product. LPG is increasingly being used as an alternative petrochemical feedstock.
CAPABILITIES
Coverage is the key to successful trading. We have the geographic coverage to satisfy demand across the world. Our product coverage allows us to take advantage of its high substitutability with other related products.
Our naphtha trading desk is one of the most active global participants in the market. We trade around 4 million metric tonnes annually, 4% of the freely traded market.
The sheer breadth of uses for the product creates many trading opportunities. We monitor changing customer needs and buy and sell different naphtha grades as required.
We focus mainly on relative values between the different grades of naphtha. We don’t take speculative positions, we use physical arbitrage techniques to bridge price differentials between buyers and sellers.
We price distinct types of naphtha. We source, blend and store the most actively demanded products and grades.
We use derivatives to manage price risk. Our presence in derivatives markets supports liquidity.
INFRASTRUCTURE
Naphtha trading operations are carried out across various locations, including Singapore, Switzerland, and the United States. The local offices oversee origination and business development, collaborating with teams in Buenos Aires, Puerto Rico, Dubai, and West Africa.
Our collaboration with gasoline traders significantly enhances our operational scope. Ongoing communication between the two desks is instrumental in establishing relative pricing and determining optimal times to supply naphtha for gasoline refining.
Close coordination with the LPG desk is another key aspect of our approach. We closely monitor pricing differentials between the two products and track evolving demand patterns from petrochemical companies.
The flexibility provided by our tankage is a crucial asset. Through term contracts with major producers, we store products at our terminal. We also engage in blending activities, processing up to half a million barrels into various types of naphtha based on market conditions. In the Far East, our focus is primarily on blending for heavy naphtha and light naphtha.
Light Naphtha Specification
| Analysis | Unit | limit | Test Method |
| Density @ 15.0 c | Kg/m3c | 700 MAX | ASTM D1298 |
| Distillation | ˚C | ASTM D86 | |
| I.B.P | ˚C | 35 MIN | |
| 10%Evaporated Temp | ˚C | 60 MAX | ASTM D86 |
| 50%Evaporated Temp | ˚C | 85 MIN | ASTM D86 |
| 95%Evaporated Temp | ˚C | 125 MAX | ASTM D86 |
| F.B.P | ˚C | 150 MAX | ASTM D86 |
| Residue | %Vol | 1.5 MAX | ASTM D86 |
| Loss | %Vol | 1 MAX | ASTM D86 |
| Total Sulphur | %Wt | 0.03 MAX | ASTM D1266 |
| Corrosion 3 HRS | 50C | No 1 strip | ASTM D13 |
| Vapour Pressure | K.Pa | 75 Max | ASTM D32 |
| Mercaphtan Contet | PPM | 25 Max | ASTM D322 |
| Colour Saybolt | – | 20 Max | ASTM D156 |
| Paraffins Content | %Vol | 70 Max | ASTM D131 |
| Oleffins Content | %Vol | 2 Max | ASTM D131 |
| Naphthenes Content | %Vol | 10 Max | ASTM D131 |
| Aromatics Content | %Vol | 5 Min | ASTM D131 |
| Lead (PB) P.PB | UOP | 40 Min | 350-68T |
| C/H Ratio | Estimated | 5.5 Max | Calculate |
| Gun Existent (air jet) | Mg/100ml | 3 Max | ASTM D381 |
