WHAT IS IT?
Naphtha is a flammable liquid hydrocarbon mixture derived from crude oil distillation. It sits between gasoline and kerosene in the distillation range, typically boiling between 30°C and 200°C.
TYPES
Light Naphtha (LN): Boiling range 30–90°C. Used mainly in gasoline blending and as a solvent.
Heavy Naphtha (HN): Boiling range 90–200°C. Primary feedstock for steam crackers and catalytic reformers.
Full Range Naphtha (FRN): The full distillation cut, sold when not split.
KEY USES
Steam cracking feedstock to produce ethylene, propylene, and butadiene (core petrochemical building blocks)
Catalytic reforming to produce aromatics (benzene, toluene, xylene)
Gasoline blending component
Solvent in paints, coatings, and cleaning products
TRADE CORRIDORS
Major exporters: Middle East (Saudi Arabia, Kuwait), Russia, India, South Korea
Major importers: Japan, South Korea, China, Singapore (as regional hub)
Tetra relevance: China and South Korea are major naphtha consumers for their petrochemical industries
PRICING BASIS
Priced against Brent crude with a crack spread. Asian naphtha benchmarked on Japan C+F (cost and freight Japan). Moves closely with crude oil price.
SPECIFICATIONS TO KNOW
PONA values (Paraffins, Olefins, Naphthenes, Aromatics) determine suitability for cracking
High paraffin content = better for steam cracking
Density: typically 0.68–0.75 g/cm³
Flash point: below 21°C (classified as flammable)
STORAGE & HANDLING
Stored in floating roof tanks due to high vapour pressure. Hazardous — requires proper ventilation and fire suppression. Transported in chemical tankers or product tankers.