Thailand's SCG Chemicals has diversified its naphtha sourcing to cope with delivery disruption from the Strait of Hormuz, its CEO said on Thursday.
SCG is buying mostly from India, Australia and Nigeria, CEO Sakchai Patiparnpreechavud said on the sidelines of the APPEC conference.
Some volume was coming from United Arab Emirates and Saudi Arabia's Yanbu port, Patiparnpreechavud said.
"So far we have been buying from spot markets and not looking at term contracts in this environment," he said, referring to shipping attacks in the Persian Gulf waterway.
SCG operates two naphtha crackers in Thailand with combined annual production capacity of 1.8 million tonnes.
The company also controls Long Son Petrochemicals in Vietnam, which has an annual capacity to produce 500,000 tonnes of high-density polyethylene, 500,000 tonnes of linear low-density polyethylene and 400,000 tonnes of polypropylene.
(Reporting by Mohi Narayan; Writing by Trixie Yap; Editing by Thomas Derpinghaus and Christopher Cushing)
