What specific technical and strategic steps is Haldia Petrochemicals taking to mitigate feedstock supply risks from the U.S.-Iran conflict?

Haldia Petrochemicals is retrofitting its naphtha-fed cracker with LPG flexibility of up to 30% in collaboration with Lummus; it has shifted to spot-market naphtha purchases after Gulf shipments via the Strait of Hormuz nearly halted, sourcing medium-range cargoes from the UAE to Vizag and seeking to resume Qatari volumes; and it plans to source LPG domestically from Indian Oil Petronas Limited (IPPL) at the same site while also exploring imports from all available sources.

Why is Haldia Petrochemicals increasing LPG usage, and what triggered this shift in feedstock strategy?

The shift was triggered by a naphtha supply shock caused by the U.S.-Iran war, which disrupted shipments through the Strait of Hormuz and served as a 'wake-up call'; in response, Haldia aims to substitute up to 30% LPG for naphtha in its cracker to hedge against Middle East supply risks, as naphtha and LPG are both key feedstocks for producing plastics and automotive parts.