India's HPL to Introduce Condensate and Expand LPG Cracking Feedstock Next Year

en.Wedoany.com Reported - On October 5, India's Haldia Petrochemicals stated that starting from 2027 it will expand the cracking feedstock slate at its Haldia petrochemical complex in West Bengal, adding condensate to the existing naphtha base and raising the LPG proportion to a maximum of 30%. Currently, about half of the company's feedstock comes from domestic sources in India, while the other half has long relied on Middle Eastern suppliers.

This adjustment was further clarified following recent disruptions to Middle Eastern feedstock supply. During the period of tight supply, the Haldia cracker operated at loads 10%–15% below normal levels on at least two occasions. The company also turned to the spot market to purchase high-priced naphtha and, for the first time, procured Russian feedstock from traders. At the peak of supply tightness, Russian-origin material accounted for 20%–30% of the company's feedstock purchases at one point, though that proportion has now fallen to a relatively low level.

The Haldia complex currently has ethylene capacity of approximately 700,000 tons per year, chemical handling capacity of approximately 491,000 tons per year, and polymer processing capacity of approximately 1.061 million tons per year. The existing cracker uses Lummus technology and is supported by downstream units including polyethylene, polypropylene, butadiene, and benzene extraction.

After Middle Eastern supply recovered, HPL has resumed purchasing feedstock from Abu Dhabi National Oil Company and Kuwait Petroleum Corporation, and QatarEnergy has also recently resumed supply. The company has a long-term supply contract with QatarEnergy for 200,000 tons per year and has received a 50,000-ton allocation this quarter; some purchases are made on a CIF basis, while others are lifted on an FOB basis from locations outside the Strait of Hormuz.

HPL had previously been studying feedstock flexibility modifications to the existing cracker to support a higher proportion of LPG entering the cracking system. The plan made public in September still focused primarily on replacing naphtha with LPG, while the latest interview for the first time further clarified that condensate will be included in the feedstock pool in 2027, enabling the cracker to form a multi-feedstock combination of naphtha, LPG, and condensate.