Oman's naphtha exports rose to at least an eight-year high in February, with rising supplies from the new 230,000 b/d Duqm refinery.
Exports rose to 299,000t in February, preliminary data from oil analytics firm Vortexa show, the highest for any month on records that go back to 2016.
The $9bn Duqm refinery reached full capacity in February, after starting production in mid-2023. Duqm began shipping out naphtha in June, with exports on an upward trend since then. The plant, operated by OQ8 — a 50:50 joint venture between Omani and Kuwaiti state-owned firms OQ and KPI — has boosted Oman's refining capacity to above 500,000 b/d.
South Korean refiners like GS Caltex and Hanwha TotalEnergies (HTC) are typical buyers of full-range naphtha from Duqm because the grade is a "natural fit" for their splitters, a Dubai-based trader said. South Korean customers emerged as the dominant buyer of Omani naphtha in February, accounting for around 64pc of total exports, followed by Malaysia and Singapore at 23pc and 12pc respectively.
More naphtha is likely to move to South Korea in March as cracker operators are on course to raise run rates, market sources said.
But Oman's exports could fall once the Duqm Petrochemical Project (DPP), which has a 1.6mn t/yr ethylene mixed-feed steam cracker, is integrated with the Duqm refinery. At full capacity, the refinery will be able to produce 130,000 b/d of diesel, 61,000 b/d of naphtha, 22,000 b/d of jet fuel and 15,000 b/d of LPG.
