Aramco increases LPG $10/t on winter demand

02 January 2008 16:52  [Source: ICIS news]

LONDON (ICIS news)--Saudi Aramco has increased liquefied petroleum gas (LPG) prices for January by $10/tonne (€6.90/tonne), as winter in the Middle East saw an upturn in demand for propane, a company source said on Wednesday.

Propane was priced up $10/tonne on December levels at $870/tonne FOB (free on board) Ras Tanura, while butane was also increased $10/tonne, to $875/tonne FOB Ras Tanura for January, the source said.

“The butane/propane spread is narrower this month, and winter in the Middle East means more demand for propane, especially with crude prices as high as they are,” the company source said.

NYMEX crude prices soared to near-record levels on Wednesday around $98.50/bbl.

Aramco produces 8.22bn cubic feet/day of natural gas, the majority of which is processed at its Ras Tanura refinery facility.

($1 = €0.69)

By: Peter Salisbury
+44 20 8652 3214

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