Saudi Aramco cuts September LPG contract prices on softer crude

29 August 2011 08:36  [Source: ICIS news]

MELBOURNE (ICIS)--Saudi Aramco has reduced its propane and butane contract prices for September shipment following a decline in crude futures, two buyers said on Monday.

Saudi Aramco cut its propane selling price by 5.4% from August to $790/tonne (€545/tonne) FOB (free on board). It reduced its butane price by 2.3% from August to $865/tonne FOB. Both prices are for cargoes loading in September.

Benchmark WTI futures closed on 26 August at $85.37/bbl, compared with $95.70/bbl on 29 July. The producer's August LPG contract price was announced on 31 July at $835/tonne FOB for propane and at $885/tonne FOB for butane. The prices apply to Saudi Aramco’s long-term contract customers.

Based at Dhahran in Saudi Arabia, the producer is a major liquefied petroleum gas (LPG) supplier to Asia.

LPG, a heating and cooking gas, is also used by olefins producers as a substitute for naphtha.

($1 = €0.69)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Trisha Huang

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