U.S. producers of ultra-light condensate have the opportunity to gain a market share in a tightening Asian condensate market, which is expected to further tighten with the return of the U.S. sanctions on Iran’s oil, Sandy Fielden, Director of Oil and Products Research at Morningstar Commodities Research, said in a note this week. U.S. shale is typically light, and some of the basins in the Eagle Ford in Texas and the Delaware Basin in New Mexico have been producing a lot of the ultra-light condensate since 2011, Fielden noted. Asia, meanwhile, is expanding its petrochemical capacity, and condensate is used in such plants either as a raw feedstock or to produce naphtha for blendstock for refining and for petrochemicals. The Eagle Ford condensate produces a type of naphtha that is particularly suited to these petrochemical plants, Fielden said, noting that the major markets for this kind of condensate are […]