RTRS: Indian Oil to export more naphtha as local demand falls
* 2009/10 naphtha exports seen at 2.5 mT vs 1.9 mT year ago
* Will not import auto fuels; kerosene imports flat at 0.9 mT (Recasts, adds details)
NEW DELHI, Oct 30 (Reuters) - Indian Oil Corp (IOC.BO: Quote, Profile, Research) will export 32 percent more naphtha in 2009/10, as better availability of natural gas locally led to a fall in domestic demand for the distillate, an official said on Friday.
Reliance Industries (RELI.BO: Quote, Profile, Research), India's top conglomerate, began pumping out natural gas from its massive fields in India's east coast this year, following which the government made allocations to various plants which have been using naphtha.
Indian Oil will export 2.5 million tonnes of naphtha in the year to March 2010 compared with 1.9 million tonnes in the previous year, its director of finance S.V. Narasimhan told reporters.
Plants prefer natural gas over naphtha as it is cleaner and gives a longer life to units.
The state-run refiner and oil marketer will not import diesel and gasoline during the fiscal year as it plans to meet shortfalls by purchasing the fuels from Reliance Industries Ltd (RELI.BO: Quote, Profile, Research), Narasimhan said.
Indian Oil's kerosene imports this fiscal would remain flat at 900,000 tonnes versus year ago, he added. (Reporting by Nidhi Verma; Editing by Malini Menon)
