UAE and Kuwait Boosted Naphtha Exports to Asia
Petrochemical producers ramped up supply to feed rising demand at Asian crackers despite regional shipping risks.
Updated on Sept. 28, 2026 in Oil and Gas
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The Abu Dhabi National Oil Company and Kuwait Petroleum Corp increased combined naphtha exports to 1.6 million metric tons during August and September. This surge in volume follows higher utilization rates at naphtha crackers across Asia and the restart of facilities in Thailand.
Why it matters
Rising export volumes signal strengthening demand in the Asian petrochemical sector as cracker utilization climbed to over 70%. Exporters are actively rerouting logistics to mitigate geopolitical exposure, reflecting the operational necessity of bypassing high-risk zones.
Middle Eastern suppliers shipped 1.6 million metric tons of naphtha in August and September, more than double the 700,000 tons moved in March and April. Utilization rates at Japanese and South Korean crackers rose to over 70%, up from approximately 68% earlier in the year.
The players
Abu Dhabi National Oil Company
A state-owned energy conglomerate and one of the world's largest oil producers.
Kuwait Petroleum Corp
The state-owned entity responsible for managing Kuwait's oil and gas operations.
SCG Chemicals
A major Thai petrochemical manufacturer operating large-scale cracker facilities.
QatarEnergy
A state-owned petroleum company managing Qatar's oil and natural gas production.
The details
Exporters are managing regional security concerns by conducting ship-to-ship transfers off the coast of Sohar, Oman, to avoid direct transit through the Strait of Hormuz. These logistical adjustments include the use of 25 vessels for transfer operations, with some operators opting to disable transponders during voyages. Simultaneously, regional pricing remains volatile, as evidenced by QatarEnergy recently offloading a cargo at a $100 per ton discount to Japanese benchmarks.
Timeline
March and April 2026: Exports totaled 700,000 tons.
Late June 2026: KPC resumed spot naphtha offers to Japan.
August and September 2026: UAE and Kuwait exported 1.6 million tons of naphtha.
September 17, 2026: SCG Chemicals restarted its naphtha cracker in Rayong.
Market Landscape
The shift in logistics follows the regional security risks associated with the US-Iran war. This trend marks a departure from traditional shipping routes as producers prioritize steady supply delivery to Asian markets through secondary transit points.
Operators reliant on naphtha feedstocks should monitor shifting regional discounts, such as the $100 per ton spread seen in recent spot transactions, as an indicator of local supply gluts. Supply chain managers must account for increased lead times associated with ship-to-ship transfer protocols.
The takeaway
The surge in volume highlights how exporters are using complex logistics to maintain output levels during heightened regional conflict. Operators should track cracker utilization rates as a key lead indicator for future naphtha demand and regional price stability.
Further reading
For more on the current supply climate, see our coverage of Oil and Gas.
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