Saudi Aramco may start charging higher prices next year for ethane gas used to produce petrochemicals. As per Bloomberg, customers such as Saudi Basic Industries Corp. (SABIC) may end up paying over the current price of $0.75/million British Thermal Unit, from 2012. The quantum of price hike is undisclosed. The average global market price for the gas is about US$4.5/million British Thermal Units.
Saudi Aramco, the sole producer of ethane in Saudi Arabia, will increase prices in response to anti-dumping concerns raised by European countries as the local cost of ethane is lower than elsewhere. Saudi Petrochemicals companies will probably continue to pay less than others outside the kingdom for ethane.