Buying naphtha: Get the receiving plant involved early
With naphtha, I want the commercial discussion and the receiving plant’s technical review to move together. It is much easier to assess a cargo when both teams are working from the same requirement.
Naphtha can be used in petrochemical production, refinery processing and gasoline blending. Those applications create different priorities. A buyer looking at feedstock for a cracker may assess a cargo differently from a refinery considering reformer feed.
Give the technical team useful information
A product description such as light, heavy, full-range or virgin naphtha provides a starting point. The analysis allows the receiving plant to assess the actual material.
Depending on the application, that review may cover the distillation range, density, hydrocarbon composition, sulphur, nitrogen and other specified contaminants. Feedstock quality can affect processing performance and catalyst requirements. The plant’s own acceptance criteria should guide the review.
We prefer to establish those criteria before substantial time is spent negotiating the commercial terms. It is more productive for everyone when an unsuitable grade is identified early.
Be clear about what the analysis represents
When an analysis is circulated, its date and relationship to the proposed supply need to be understood. Is it a typical refinery analysis, a previous cargo result, or evidence relating to the product now being discussed?
Each can have a role in the assessment, but the documents answer different questions. An initial technical review should lead to agreement on the evidence needed for cargo acceptance, including any further testing or inspection.
The receiving plant should also identify who can confirm technical acceptance and how long the review is likely to take. That timing needs to fit the proposed loading and delivery programme.
Keep the commercial and physical requirements aligned
For naphtha moving through Black Sea, Mediterranean or other international supply routes, the enquiry needs a realistic quantity, destination and delivery window. Terminal restrictions, parcel size and vessel arrangements can materially affect which proposals are practical.
The commercial comparison should then use a clearly defined benchmark and pricing period, with freight and other relevant costs considered on a consistent basis. The buyer’s assessment of the material remains central to that calculation.
To discuss a naphtha requirement with DRAKENSBERG ENERGY TRADING, please share the intended use, full specification, quantity, destination, timing and your buying company’s details. Where possible, include the technical contact responsible for acceptance.
Contact the trading desk with those details. Any proposal will depend on availability, the receiving plant’s acceptance, counterparty approval and agreed contract terms.