KPC concludes term deal for naphtha supplies lifting December ’10 to November ‘11

09-Oct-10

Kuwait Petroleum Corp (KPC) has concluded a term deal for naphtha supplies lifting December 2010 to November 2011, to customers including Japanese Mitsubishi Chemicals, Mitsui Chemicals, South Korea's YNCC, Hanwha, India's Haldia Petrochemicals and Taiwan's CPC. As per Reuters, full-range grade was agreed at a US$12/ton premium to Middle East quotes on a free-on-board (FOB) basis, and a light grade at a premium of US$13/ton FOB. KPC will tie-up a total of about 300,000 tons of light grade in the 12-month contract, while volumes for the full-range grade for the December-November term stood at around 800,000 tons. This is the first time KPC is securing a deal for its light grade naphtha through term contracts, as light naphtha production commenced in late 2009. Its new aromatics plant produces up to 1 mln tpa of light naphtha.