Haldia to revamp feedstock mix after Mideast war hit supplies, executive says

NEW DELHI: Haldia Petrochemicals Ltd will diversify feedstock sourcing and widen its raw materials pool in 2027 after the Middle East war disrupted flows from traditional suppliers, its chief marketing officer said on Monday.

The company, one of India's two naphtha importers, typically sources 50% of its feedstock locally and the rest from Middle East suppliers, Sanjiv Vasudeva told Reuters in an interview.

"Life will not be the same," said Vasudeva, referring to the supply disruption.


To hedge against future disruptions, HPL will start processing condensate and up to 30% LPG at its eastern India cracker next year, he said.

The plant in West Bengal state has 700,000 tons per year of ethylene capacity, 491,000 tons of chemical processing and about 1 million tons of polymer capacity.

The war forced HPL's cracker to run 10%-15% below capacity at least "twice", he said. It bought costly spot naphtha and, for the first time, Russian barrels from traders under a US waiver. Russia accounted for 20%-30% of feedstock during the time.

Russian volumes are now "minimal", but HPL will keep the option open next year if supplies remain unsanctioned.

MIDDLE EAST SUPPLIES RESUMED

Since late June, HPL has been sourcing from Abu Dhabi National Oil Company and Kuwait Petroleum Corp, with QatarEnergy exports recently resuming. The company buys on a delivered and free-on-board basis from locations outside the Strait of Hormuz, he said.

HPL has a 200,000-ton-per-year supply contract with QatarEnergy and received its 50,000-ton allocation this quarter, he said.

Vasudeva, who also heads group subsidiary Adperma, said the unit will begin commercial production of acetone and phenol from end-December.

HPL, majority-owned by US-based private equity firm The Chatterjee Group, plans to list Adperma in the second half of 2027.