Formosa Petrochemical Corp has finalised the 2012 term contract to sell 10 ppm sulphur gasoil to three buyers at firmer levels, as per Dow Jones. A premium of US$2.40 a barrel was fixed to benchmark Singapore quotes, on a free-on-board (FOB) basis, to three buyers.
Long-term contracts have been inked to supply a combined 3.6 mln barrels to Royal Dutch Shell PLC, ConocoPhillips and Vitol Holding BV- as one cargo consisting of 300,000 barrels every quarter. The term volume will comprise about half of Formosa's 10-ppm-sulfur gasoil exports next year. The rest will likely be sold on a spot basis.