Abu Dhabi National Oil Co (ADNOC) has reached a final price agreement with its term customers to supply both splitter and low sulfur naphtha for April 2012-March 2013 at a premium of US$23.50/mt to the ADNOC formula, as per Platts. The ADNOC formula takes the average of FOB Arab Gulf naphtha assessments from Platts and Petroleum Argus.
Earlier this week, ADNOC revised downward its offers for both splitter and low sulfur naphtha from a premium of US$25/mt. Despite the downward revision, not all term buyers for the splitter and low sulfur naphtha grades renewed their contracts with ADNOC for this cycle. Also, the company has not yet had any buyer acceptance for it’s offer for paraffinic naphtha. Its paraffinic naphtha is now priced at a premium of US$25.50/mt, down from a premium of US$27/mt. All grades are priced to the ADNOC formula.
Besides the April-March cycle, ADNOC also offers term naphtha via its July-June and January-December cycles.