The UAE’s Abu Dhabi National Oil Co has sealed the term contracts for
the three grades of naphtha supplied on a term basis over July 2018 to
June 2019 at higher premiums than for the January-December 2018 cycle or the
cycle a year ago, market sources said Tuesday.

ADNOC has concluded the term deal with buyers at a premium of $22/mt for
splitter naphtha and low sulfur naphtha from Ruwais Refinery West, and a
premium of $25/mt for paraffinic naphtha and $23/mt for low sulfur naphtha
from Ruwais Refinery East, sources said.

ADNOC could not be reached for comment.

The Middle Eastern supplier had cut the premium twice for all three
grades since negotiations started around the end of April.

All three grades are priced against an ADNOC formula that takes the
average of FOB Arab Gulf naphtha assessments by S&P Global Platts and
Petroleum Argus.

ADNOC’s current term contract for July 2017-June 2018 was fixed at a
premium of $13/mt for paraffinic naphtha, $12/mt for low sulfur naphtha from
its east refinery, and $11/mt for low sulfur naphtha from the west refinery,
as well as for splitter naphtha.

For the January-December 2018 cycle, the splitter grade term contract was
sealed at a premium of $14.50/mt to the ADNOC formula, low sulfur naphtha at
a premium of $14.50-$15.50/mt, and paraffinic naphtha at a premium of $18/mt.

The volume of splitter naphtha offered by ADNOC was lower in this cycle
as it had allocated some splitter naphtha to its three-year term buyers,
Japan’s Idemitsu Kosan, Thailand’s Siam Cement General Chemicals and
Malaysia’s Lotte Chemical Titan, sources said.

In addition, production of splitter naphtha was lower due to ADNOC’s
use of a different condensate grade, which yields less naphtha, a trader said.
This could not be confirmed with ADNOC.

ADNOC has two term naphtha cycles — January-December and July-June.

–Sue Koh, sue.koh@spglobal.com

–Wendy Cheong, wendy.cheong@spglobal.com

–Edited by E Shailaja Nair, shailaja.nair@spglobal.com

Source link

NO COMMENTS

LEAVE A REPLY