The naphtha Sohar operation—ADNOC’s exports from the Omani port using ship-to-ship transfers—resumed in May and is now supplying Asian buyers without exposing their vessels to the Strait of Hormuz.
Naphtha Sohar: The Key Route ADNOC Activated to Supply Asia
In April, ADNOC halted approximately 1 million metric tons per month of naphtha exports from its Ruwais refinery due to transit restrictions through the Strait of Hormuz. In May, the company activated the naphtha Sohar operation: moving shipments from Ruwais, inside the Gulf, to the port of Sohar in Oman, where they are transferred to other tankers through ship-to-ship operations before sailing to Asia.
Reuters identified at least two vessels—Minerva Pisces and Torm Gwyneth—loading naphtha Sohar around May 30 bound for Asian markets. ADNOC did not comment on vessel movements or routes. The company had accelerated construction of the West-East Pipeline 1 to mitigate the impact of the Hormuz closure on its crude exports, and this new route is the equivalent solution for refined products.
How Ship-to-Ship Transfers Work
A ship-to-ship (STS) operation involves transferring liquid cargo from one vessel to another while both are underway or at anchor, without the need for a shore terminal. Sohar, located on the Omani coast outside the Persian Gulf, allows vessels loaded at Ruwais to discharge their cargo to larger vessels positioned in open waters, avoiding transit through Hormuz for the final leg to Asia.
This mechanism is technically complex—requiring precise coordination of maneuvers, compatible cargo transfer systems, and suitable weather windows—but it is a proven solution in the sector. Naphtha is a key product from the petroleum refining process and represents a high-value stream for Asian petrochemical complexes. Sohar is thus consolidating as a strategic logistics hub for regional energy trade.
The Impact on Prices: Naphtha Sohar Relieves the Asian Market
The previous shortage was severe: the Asian benchmark price reached a historic record of $1,300 per ton in March, with refining margins of up to $467 per ton over Brent. The resumption of naphtha Sohar began to relieve that pressure: as of June 2, the price for delivery in the second half of July fell to $788 per ton, with margins compressed to approximately $84 per ton.
ADNOC has committed 200 billion AED in projects through 2028, with Ruwais as one of its most important refining assets. The continuity of naphtha Sohar exports protects the value chain of that industrial complex and reduces logistical dependence on the Strait.
Why Naphtha Is Critical for Regional Petrochemicals
Naphtha is the primary feedstock for steam crackers in Asia—facilities that convert naphtha into ethylene, propylene, and other industrial precursors. The previous shortage generated operational cutbacks and force majeure declarations at petrochemical complexes in Japan, South Korea, and China. The IEA estimates that global naphtha demand will fall 80,000 bpd this year, partly in response to high prices that prompted buyers to seek alternative feedstocks such as ethane and refinery gases.
The naphtha Sohar operation confirms that, in maritime disruption scenarios, energy resilience depends as much on production capacity as on the logistics to redesign cargo flows in real time.
The geopolitical context remains decisive. As long as tensions in the Gulf remain unresolved, demand for alternative routes like naphtha Sohar will continue to grow. Other regional producers—Kuwait, Qatar, Iraq—are observing ADNOC’s model as a reference to protect their own refined product export chains against potential future disruptions.
