Bapco Sells More Naphtha on Reformer Shutdown

Bahrain Petroleum Company (BAPCO) sold an additional 25,000 tons of spot naphtha, bringing its total spot volumes for April 2010 to about 75,000 tons, more than expected due to a reformer shutdown, traders said on 24 February 2010. BAPCO sold the parcel by tender late on 23 February 2010 for 22-25 April 2010 loading at a premium of around US$20 a ton to Middle East quotes, on a freeـonـboard (FOB) basis, to undisclosed oil major.

The company had about a week ago sold 50,000 tons for 10-13 April 2010 loading at a premium of US$17-US$18 a ton, FOB. BAPCO usually exports a maximum of 50,000-55,000 tons of naphtha a month, traders said.

"They may have more volumes for April 2010 because they have shut a reformer for maintenance from JanuaryـMarch," said a trader. It may take time for the reformer, which reforms naphtha into gasoline, to ramp up production even when it restarts in March 2010, traders said.

The additional 25,000ـton cargo is not expected to weigh on the market, where sentiment is currently firm on stronger demand from Northeast Asia. Cracks, the premiumsـlosses obtained from refining Brent crude into naphtha, jumped to a twoـweek high at US$144.15 a ton. - Al Watan