India's Haldia shuts naphtha cracker after ports declare force majeure

NEW DELHI,  (Reuters) - India's Haldia Petrochemicals has shut its naphtha cracker, a person familiar with the matter said, after ports in the country declared force majeure to prevent the spread of the coronavirus.

The petrochemical maker operates a 670,000 tonnes per year cracker, which on average would need more than 150,000 tonnes of naphtha feedstock a month if the unit is at full capacity, based on Reuters calculations.

Haldia Petrochemicals buys naphtha from Kuwait Petroleum Corp (KPC) and Indian Oil Corp (IOC).

The federal shipping ministry in India has issued a letter allowing ports to use the COVID-19 pandemic as valid grounds to declare force majeure. (Reporting by Nidhi Verma; Writing by Seng Li Peng; Editing by Mark Potter)