SINGAPORE: Sri Lanka's Ceylon Petroleum Corp (Ceypetco) has offered a rare naphtha cargo for December as heavy rains curb the use of the fuel for power generation purposes, industry sources said on Friday.
The state-owned company has offered 100,000 barrels of naphtha for loading from Dolphin Pier, Colombo over Dec. 20 to 21, a tender document showed. Bids are to be submitted on Dec. 4 and will expire in 72 hours.
"Due to heavy rains, hydropower is maximised, so there are some temporary exports of naphtha," one of the sources said.
It is unclear how long the company will continue to offer naphtha for export as this will depend on the weather, the source added.
Naphtha produced from the domestic refinery is used for power generation in Sri Lanka.
The Asian naphtha market recovered slightly from late last week due to strong demand from North Asia, especially China.
Although cargoes on a cost-and-freight (C&F) basis were still sold at discounts to Japan quotes, price levels were seen narrowing to about $4 from early this week in South Korea compared to $12 in the week of Nov. 10.
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