Q. How are different types of naphtha cargoes classified for reporting purposes? (7/27/2004)

Q. How are different types of naphtha cargoes classified for reporting purposes?

A:  Naphtha to be used as reformer feed is classified as unfinished oils, naphtha and lighter (EIA product code 820). Naphtha intended for gasoline blending is classified as motor gasoline blending components. If the naphtha is intended for gasoline blending but it's not already blended to form RBOB (EIA product codes 122 and 123), CBOB (EIA product code 139), or GTAB (EIA product codes 120 and 121), then classify the product as “All Other Motor Gasoline Blending Components” (EIA product code 138). Naphtha classified as unfinished oils or motor gasoline blending components requires reporting of a processing facility.

Traders will probably be able to tell the difference between reformer feed and motor gasoline blending components based on product quality. The processing facility may provide an additional clue. If the processing facility is a refinery, it's likely, though not certain, the product will be handled as unfinished oils. If the processing facility is a petroleum storage terminal then it is more likely, though again not certain, the naphtha will be treated as motor gasoline blending components. The ideal solution solution is to contact the processing facility and ask how they will classify the product on their refinery or bulk terminal reports to EIA. If the product gets changed at a terminal or refinery after it first appears as a receipt and/or inventory, then it will be up to the terminal or refinery operator to report the reclassification to EIA.

There are two additional possible classifications for naphtha, again depending on intended end use, that do not require reporting a processing facility on Form EIA-814. One product is special naphtha (EIA product code 051). Classify naphtha as special naphtha if the intended end use is as solvent. Another is petrochemical feedstock (EIA product code 822). This would be the product classification for imported naphtha intended for cracking into olefins.