Aramco to supply A-180 naphtha at $16/t premium

22 May 2008 10:01  [Source: ICIS news]

SINGAPORE (ICIS news)--Saudi Aramco's offer for its A-180 naphtha term supply at a premium of $16.00/tonne to its own pricing has been accepted by a buyer said to be a Japanese producer, according to industry sources on Thursday.

The A-180 light naphtha grade from Ras Tanura is for lifting in the second half of this year. The premium was unchanged from the price fixed in the first half of this year.

Once a buyer has accepted the price, Saudi Aramco will not revise the premium, a source said.

Buyers have yet to accept offers for the other grades of naphtha.

Rabigh chemical treated naphtha grade was offered at a premium of $15.00/tonne, Al-Jubail naphtha grade at premium of $14.00/tonne and the A-310 splitter grade from Ras Tanura at premium of $13.00/tonne.

Pricing for the respective grades were pegged at premiums of $16.00/tonne, $15.00/tonne, $13.00/tonne and $12.00/tonne for lifting in the first half of this year.

Negotiations had started early this week in London.

Customers include Japan’s Marubeni, South Korea's Yeochun Naphtha Cracking Center (YNCC), Taiwan’s Formosa Petrochemical Corp and CPC Corp, and Malaysia’s Titan Chemicals Corp.

The recent offer had also attracted first timers such as PetroChina, Sempra Energy and Trafigura.

Saudi Aramco is the biggest Middle East naphtha supplier to Asia.

($1 = €0.63)

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Author: Desmond Chia
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