NIOC could trim exports by at least 1 million barrels that month, one of the sources said. The company typically exports about 15 million barrels of South Pars condensates each month, Reuters reported.
The drop in Iranian condensate exports in October comes as China’s Unipec is about to resume cargo liftings from Iran in October, a second source said. The trading arm of Asia’s largest refiner Sinopec typically halts imports in summer months due to environmental restrictions at Chinese ports, according to Financial Tribune.
Demand for Iran’s condensate is also on the rise, as test runs continue at a new splitter operated by its Persian Gulf Star Refinery at Bandar Abbas, the sources said.
A rise in Chinese demand and a drop in Iranian supplies have supported the value of Qatari condensate. Spot premiums for low-sulfur condensate in November are up about 70 cents from the previous month.
Condensate is an ultra light oil processed in splitters to produce mainly naphtha, a petrochemical raw material. It is in the twilight zone between crude oil and natural gas.
They possess characteristics of both oil and gas, and have values and market drivers both similar to, and distinctly separate from, oil and gas.
Iranian oil officials say the country produces and exports up to 600,000 barrels of condensates daily.