USAC turns to Mexico to replace Russian naphtha

USAC turns to Mexico to replace Russian naphtha

New York, 13 April (Argus) — Charterer GE Warren yesterday booked a medium range (MR) tanker to carry 38,000t of naphtha on an unusual east coast Mexico-US Atlantic coast voyage, according to shipbrokers, as importers in the region look to replace Russian supplies now under sanctions.

The Hafnia Bulldog MR tanker was booked for $2.15mn lump sum to load naphtha in Pajaritos, Mexico, on 16 April and then discharge in New York. If carried out, the tanker would be just the fourth since 2016 to complete such a voyage, per Vortexa data.

So far this year, roughly 36,000 b/d of naphtha imports have flowed into the US Atlantic coast, with 77pc coming from Russia, according to Vortexa. Last year, the region imported roughly 61,000 b/d of naphtha, with 65pc coming from Russia.

GE Warren's booking also included a discharge option in the US Gulf coast for $1.75mn, a slightly less unusual voyage, and one not driven by the need to replace Russian supplies. Since the start of 2021, just 5,300 b/d of naphtha imports have been shipped into the US Gulf coast, per Vortexa data. None of those imports came from Russia, while 14pc came from Mexico.

Mexico through state-owned Pemex has seen its