TEHRAN – Iranian gas condensate exports to Asia are expected to remain strong for the rest of the year as South Korea eyes 250,000 barrels per day (bpd) of South Pars condensate in Q4, Platts quoted two sources with close knowledge of Iran-South Korea term deals.

According to the report, Hanwha Total Petrochemicals has been consistently receiving 100,000-120,000 b/d of South Pars condensate to date this year, and the growing popularity of U.S. Eagle Ford condensate is unlikely to alter South Korea's preference for Iranian supply.

"U.S. condensate is hot property this year but, so what? South Pars is still cheaper delivered and the sheer volume can never be matched," the Seoul-based source said.

Iran has shipped more than 500,000 bpd of ultra-light crude to Asia in 2017.

Most of Asian end-users eye naphtha-rich Iranian condensate for its competitive price since South Pars condensate still seen cheaper than rival Qatari grades.

Regional condensate traders said other major North Asian end-users with term purchase agreements, including South Korea's SK Innovation and Hyundai Chemical and Japan's JXTG, may continue to take at least one VLCC each of South Pars every month until the expiry of their 2017 supply contracts.

Iran's return to the international market after the lifting of economic sanctions in early 2016 was welcomed by various North Asian end-users, and condensate trade flows between Tehran and the Far East will likely remain robust, setting aside any potential supply disruption risks stemming from the recent U.S.-Iran diplomatic tension for now, regional condensate traders said.

EF/MA