What grades of naphtha does Royal Global Energy supply?

Royal Global Energy supplies light, medium and heavy naphtha. Light is used mainly as petrochemical feedstock; medium covers gasoline blending, reforming and petrochemical uses; heavy is used primarily for reforming and gasoline component production.

How is naphtha shipped?

Naphtha is shipped as bulk liquid in product tankers — MR (25–55k DWT), LR1 (55–80k DWT), LR2 (80–110k DWT) or VLCC combos. RGE offers FOB, CIF and CFR. Minimum parcel size is typically 5,000 MT.

Where are RGE's naphtha trading desks?

RGE operates three core naphtha trading desks in Singapore, Switzerland and the USA, with regional offices in Buenos Aires, Puerto Rico, Dubai and West Africa.

How much naphtha does RGE trade annually?

RGE trades approximately 4 million metric tonnes per year — around 4% of the 100 million tonne freely traded global market.

NAPHTHA

Feedstock · Blendstock · Diluent

The world's most versatile refinery output — primary feedstock for the petrochemical industry, key component in gasoline blending, and widely used as a pipeline diluent.

Royal Global Energy sources, trades and transports naphtha across light, medium and heavy grades from origins spanning the Middle East to the Americas.

100M tFreely traded / yr

~4M tRGE desk volume

3Core trading desks

15–30%Of crude yield

Get a quote View packing & specs

Grades

Light, Medium & Heavy

Select a grade to see how it's used and where it's sourced.

Light Naphtha

Medium Naphtha

Heavy Naphtha

Light

Light Naphtha

The lightest naphtha cut — lower boiling point range, higher paraffin content. Primary feedstock for steam crackers producing ethylene and propylene, the building blocks of plastics.

Petrochemical feedstock — steam cracking to produce ethylene, propylene, BTX aromatics

Gasoline blending — secondary use as a blendstock to meet octane and volatility specs

Solvent applications — industrial cleaning and paint thinners at certain specs

Sourcing & Demand

Middle EastLargest source

MediterraneanNet supplier

AfricaNet supplier

JapanMajor importer

KoreaMajor importer

TaiwanMajor importer

Cracker feedstock demand in Northeast Asia drives the bulk of light naphtha trade flows from Middle East and Mediterranean origins.

Medium

Medium Naphtha

The most flexible grade — sits between light and heavy in boiling range and composition. Spans the full range of end uses, making it the most actively traded grade in the market.

Gasoline blending — direct blendstock for motor gasoline pools worldwide

Catalytic reforming — feedstock for reformers producing high-octane gasoline components

Petrochemical feedstock — used where cracker economics favour naphtha over LPG

Sourcing & Demand

Middle EastLargest source

IndiaNet supplier

South AmericaNet supplier

JapanMajor importer

KoreaMajor importer

Medium naphtha's flexibility creates the most active relative-value trading opportunities between gasoline and petrochemical end-uses.

Heavy

Heavy Naphtha

The heaviest naphtha cut — higher boiling point, richer in naphthenes and aromatics. Preferred feedstock for catalytic reformers, which convert it into high-octane gasoline blending components.

Catalytic reforming — primary use; produces reformate aromatics for gasoline pools

Aromatics extraction — benzene, toluene, xylene (BTX) production via reformate

Gasoline components — reformate blended directly into motor gasoline for octane uplift

Sourcing & Demand

Middle EastLargest source

AfricaNet supplier

South AmericaNet supplier

KoreaMajor importer

TaiwanMajor importer

Heavy naphtha trade flows are driven by reformer demand in Northeast Asia; blending with light naphtha is common to hit cracker specs.

Application

Where Naphtha Is Used

A single commodity with three very different value chains — each creating distinct sourcing, pricing and logistical requirements.

Petrochemical Feedstock

Light naphtha is steam-cracked into ethylene and propylene — the foundation of plastics, resins, fibres and packaging materials used globally.

Light & Medium

Gasoline Blending

Naphtha can account for up to 30% of a finished gasoline blend — bridging the crude barrel to the retail fuel pool in both developed and emerging markets.

Medium & Heavy

Diluent

Widely used to reduce the viscosity of heavy crude and bitumen, enabling pipeline transport — an essential function in landlocked heavy oil regions.

All grades

Reference

Price Relationships

Naphtha's price is anchored to crude but shaped by downstream demand — creating structured relative-value opportunities.

vs Gasoline

Up to 30% of the Blend

Naphtha is a primary constituent of finished gasoline. The naphtha–gasoline spread determines when it is more valuable as a blendstock versus petrochemical feedstock.

vs LPG

Competing Feedstocks

LPG competes directly with naphtha as a cracker feedstock. When LPG is cheaper on an energy-equivalent basis, crackers switch — driving naphtha back into gasoline blending.

vs Crude

Tight Crude Correlation

Naphtha tracks benchmark crude closely. The naphtha crack spread — naphtha price minus crude — reflects refinery economics and seasonal demand shifts.

Grade spreads

Inter-grade Arbitrage

High substitutability between light, medium and heavy naphtha creates persistent grade spreads. RGE actively trades these differentials using physical cargoes and derivatives.

Figures and classifications reflect RGE's trading desk view; prices are market-level, not cargo-specific.

Global Reach

Three Core Trading Desks

Each desk covers a distinct geographic zone — together they give RGE 24-hour market presence across all major naphtha trade routes.

Singapore

Far East gateway — covers Northeast Asian import demand and Middle East–Asia cargo flows. Largest naphtha import market globally.

Switzerland

European hub — Mediterranean sourcing, Northwest European demand, and global derivatives pricing desk.

USA

Americas origination — US Gulf Coast supply, South American flows, and trans-Atlantic arbitrage opportunities.

Regional offices Oman Qatar Dubai

Talk to a desk now

Tell us your grade, volume and port — we'll come back with pricing within the hour.

Contact a trader

Trading Approach

How We Trade Naphtha

Five disciplines run simultaneously across our three desks — each reinforcing the others.

~4M t

Traded annually — approx. 4% of the freely traded global market

Relative Value

We trade differentials between naphtha grades using physical arbitrage — buying grade mismatches and selling into the most profitable end-use, rather than taking directional bets on price level.

Sourcing & Storage

We price, source, blend and store the most actively demanded grades — holding term supply contracts with major Middle East producers and terminal positions for just-in-time delivery.

Derivatives & Hedging

We use derivatives markets to manage price risk on physical positions, and provide liquidity to counterparties who need to hedge naphtha exposure without trading physical cargoes.

Gasoline Desk Co-ordination

Our naphtha and gasoline desks share pricing intelligence in real time — so we always know whether naphtha is worth more as a blendstock or a cracker feedstock on any given day.

LPG Desk Co-ordination

We monitor the naphtha–LPG spread continuously. When LPG undercuts naphtha at the cracker, we redirect supply into the gasoline pool and coordinate with our LPG desk on combined origination.

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Want to know more?

Our trading desk is open to discussing supply and pricing for qualified buyers and counterparties.

Get in touch

Logistics

Storage & Blending

We hold term contracts with major Middle East producers and manage terminal positions in two blending regions to meet buyer specifications.

0.5M bbl

Blending capacity, typical

Active blending regions

Region	Blend focus
Middle East	Multi-grade blending up to ~0.5M bbl; term-contract supply from major producers
Far East	Heavy & light naphtha blending for Northeast Asian petrochemical buyers

Middle East

Terminal Storage

Dedicated terminal capacity with multi-grade tankage, enabling grade optimisation and just-in-time delivery to cargo buyers across the region and into Asia.

Far East

Petrochemical Blending

Heavy and light naphtha blended to meet cracker specifications for Japanese, Korean and Taiwanese petrochemical plants — the world's largest naphtha import market.

Packing

Tanker & Export Packing

Naphtha moves exclusively as bulk liquid cargo — no drums, flexi-bags or containers. Here's how a cargo is sized, loaded and shipped.

Naphtha is loaded directly into the tanks of product tanker vessels at terminal or refinery loading arms. Cargoes range from 5,000 MT coastal parcels on Medium Range tankers up to full ~75,000 MT LR2 lots for long-haul Middle East–Asia trades.

5,000 MT

Min. parcel size

75,000 MT

LR2 full cargo, typ.

FOB / CIF

Primary Incoterms

MT / BBL

Trade units

Product tanker — typical loaded vessel

4–5Cargo tanks, typ. MR

EpoxyTank coating

AmbientLoad temperature

Vessel size comparison

25–55k DWT

LR1

55–80k DWT

LR2

80–110k DWT

VLCC

200k+ DWT

Grade → vessel fit at a glance

Light naphtha typically ships on MR / LR1 tankers. Medium naphtha fits LR1 / LR2. Heavy naphtha moves on LR2 or VLCC combination voyages for the largest long-haul cargoes.

Cargo & Trade Specification

Vessel Types

MR · LR1 · LR2 · VLCC

25,000 to 200,000+ DWT — selected by cargo size and route length, from regional coastal parcels to long-haul combo voyages.

Typical Cargo Size

5,000 – 75,000 MT

Coastal parcels start at 5,000 MT; a full MR lifting is around 25,000 MT; LR2 cargoes reach up to 75,000 MT.

Tank Coating

Epoxy or Stainless

Product-tanker specification coatings prevent contamination and preserve naphtha quality through transit.

Loading Temperature

Ambient

No heating required for any naphtha grade — unlike heavier fuel oils, naphtha loads and discharges at ambient temperature.

Incoterms Available

FOB · CIF · CFR

DAP and DDP terms can be arranged on a negotiated basis for specific terminal deliveries.

Trade Units

MT · BBL · KL

Metric tonnes for cargo contracts, barrels for pricing and derivatives, kilolitres for terminal measurement.

Key Trade Routes

Middle East → Asia

Middle East to Japan, Korea and Taiwan · Mediterranean to Northwest Europe · India and Africa to Asia.

Bulk liquid only — no drums, flexitanks or container shipments. RGE manages the full logistics chain from terminal loading through to discharge port nomination.

Documentation

Specifications & Downloads

Grade data sheets ready to share with your procurement or trading team — typical assay, density, distillation range and sulphur content.

Light NaphthaSpecification sheet · PDF

Medium NaphthaSpecification sheet · PDF

Heavy NaphthaSpecification sheet · PDF

Packing & Logistics GuideVessel types, Incoterms & trade units · PDF

Need a Quote on Naphtha?

Tell us the grade, volume and destination port — our trading desk will come back with pricing, vessel options and estimated lead time.

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Call a desk directlySingapore · Switzerland · USA

Email the trading deskinfo@royalglobalenergy.com