UAE buys first US oil cargo to replace Qatar condensate
SINGAPORE (Reuters) — The United Arab Emirates will import the country's first oil cargo from the United States, two sources familiar with the matter said, as the OPEC producer sought substitutes to replace Qatari condensate supplies after a diplomatic row.
The UAE halted condensate imports from Qatar after it, along with Saudi Arabia, Egypt and Bahrain, severed diplomatic and transport ties with Qatar after accusing it of supporting terrorism, a claim which Doha denies.
Abu Dhabi National Oil Co (ADNOC) bought a US Eagle Ford condensate cargo in a tender for September arrival, the sources said on Wednesday.
Specific volumes were not available but the cargo will arrive in a supertanker that can carry up to 2 MMbbl of oil, one of the sources said.
ADNOC declined to comment.
ADNOC faced limited options in sourcing for condensate substitutes as strong demand for the ultra-light oil in South Korea and Indonesia tightened supplies in Asia, trade sources said.
This forced the state oil company to look for supplies from other regions, including Eagle Ford condensate from the United States.
ADNOC used to receive 1 MMbbl to 1.5 MMbbl of Qatari condensate every month under a term agreement with Qatar Petroleum, trade sources said earlier.
Condensate is a byproduct of natural gas production and the oil is processed at refining units to produce mainly naphtha, a petrochemical raw material.
ADNOC earlier bought Khuff condensate from Saudi Arabia to replace Qatari supplies, the trade sources said, but the production volume of this oil is small and it is usually consumed locally.
Reporting by Florence Tan and Jessica Jaganathan; Additional reporting by Rania El-Gamal in DUBAI and Catherine Ngai in NEW YORK; Editing by Tom Hogue and Biju Dwarakanath
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