Saudi Aramco, Sonatrach increase April LPG contract prices

01 April 2011 16:16  [Source: ICIS news]

LONDON (ICIS)--Sonatrach and Saudi Aramco have both increased petroleum gas (LPG) prices for April on high crude oil values, sources said on Friday.

Saudi Aramco increased its propane price by $55/tonne (€39/tonne) to $875/tonne FOB (free on board) Ras Tanura, while the group also raised its butane price by $30/tonne to $890/tonne FOB Ras Tanura.

A source at Saudi Aramco said the group is increasing prices because of high crude oil values and strong demand from Asia, due to the recent earthquake and tsunami in Japan.

Sonatrach announced more extensive increases - with propane at $925/tonne FOB Bethouia, up $75/tonne, and butane at $935/tonne FOB Bethouia, up by $70/tonne.

One propane trader said the market had expected increases akin to those of Saudi Aramco but was surprised by the hikes announced by Sonatrach.

“I know European propane is well-valued, but not that well-valued," the source said.

Spot propane cargoes are currently trading at $940-945/tonne CIF (cost insurance freight) NWE (northwest Europe), while butane cargoes are at $955-960/tonne CIF NWE.

($1 = €0.70)

By: Sarah Trinder
+44 20 8652 3214

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