IOC seals first term naphtha deal with Taiwan’s CPC

15-May-09

Taiwan's CPC Corp has bought 210,000 tons naphtha for June-December 2009 lifting from Indian Oil Corp (IOC), concluding its first-ever term naphtha contract with IOC. Per ton premium of US$7-8 was paid to IOC's pricing formula on a free-on-board (FOB) basis, terms similar to what CPC manges with its regular supplier. Under the 7 month contract, IOC will ship out 30,000 tons per month of naphtha to CPC. CPC normally procures feedstock from Saudi Aramco that is currently unable to meet supplies for July-December 2009 due to an outage in March at a hydrocracker and lower refinery runs at Ras Tanura. The cracker is expected to be restarted in early June.