Haldia Petrochemicals to diversify feedstock sourcing by 2027
by@Reuters
Summary
Haldia Petrochemicals Ltd, one of India's key naphtha importers, announced plans to diversify its feedstock sourcing due to disruptions in supply caused by the ongoing Middle East war. In a statement made by Chief Marketing Officer Sanjiv Vasudeva, the company, which typically relies on a mix of 50% local and 50% Middle Eastern feedstock, will start processing condensate and up to 30% LPG at its eastern India cracker starting in 2027. This strategic move is in response to challenges that have already forced its operations to run below capacity and highlighted a broader trend among Indian petrochemical operators to explore alternative raw material sources to reduce dependence on single-origin supplies amid escalating geopolitical tensions.
Analysis
Sanjiv Vasudeva: Sanjiv Vasudeva is the chief marketing officer at Haldia Petrochemicals Ltd, where he oversees feedstock sourcing and commercial operations. He also leads the group's subsidiary Adperma, which is preparing to commence production of specific chemical products. His recent comments detail the operational impacts of supply issues and the company's planned diversification measures starting next year. Haldia Petrochemicals Ltd: Haldia Petrochemicals Ltd is an Indian petrochemical company operating a cracker facility in West Bengal that processes feedstock into ethylene, chemicals, and polymers. It is one of India's key naphtha importers and has faced supply chain pressures from regional conflicts affecting traditional Middle East sources. The company is actively shifting its feedstock strategy to include additional types of raw materials to build resilience against future disruptions. Supply Disruption: Middle East conflicts have interrupted flows of petrochemical feedstock from traditional regional suppliers to Asian buyers. Diversification Efforts: Indian petrochemical operators are broadening raw material options to include alternative sources and types to reduce reliance on single-origin supplies.
Categories
macropolitics