Concord Energy in first time term deal with Qatar's Tasweeq to lift naphtha

20-Dec-13

Singapore-headquartered Concord Energy has signed a term deal with Qatar's Tasweeq for the first time to lift naphtha in 2014, as per sources in Reuters. The trading firm, which also deals with crude and other petroleum products, will be lifting two different naphtha grades from Tasweeq, namely gas-to-liquid (GTL) and plant condensate at premiums of US$32-34/ton to Middle East quotes on a free-on-board (FOB) basis. Total volumes to be lifted by Concord Energy were not immediately clear, but Tasweeq had previously issued a term tender to sell 200,000 tons to 60,000 tons of plant condensate for all of 2014, or one 50,000 ton cargo a month or per quarter. Since October, the Asian market has seen low supplies from India all through the fourth quarter due to refinery maintenance, amid strong demand in the region. This prompted buyers to shell out high premiums to secure cargoes, with the latest spot deal seen done at US$41.50/ton to Middle East quotes on a FOB basis between Indian refiner MRPL and Japanese trader Marubeni. This was the highest premium MRPL had fetched for a naphtha cargo in about eight months. Lack of cheap alternative feedstock liquefied petroleum gas (LPG) was another driver behind the strong naphtha premiums as this would mean petrochemical makers have to rely mostly on the light fuel. All these worked in favour of Tasweeq, which also sells full-range naphtha apart from plant condensate and GTL grades.