Marubeni decides against renewal of higher priced naphtha deal with KPC

Higher priced offers have led Japan’s Marubeni to decide against renewal of a contract with Kuwait Petroleum Corp (KPC) for bout 100,000 tons naphtha lifting for the period of December 2009-November 2010. Besides the highly priced offers, the sellers’ attitude had repelled buyers. Earlier this year in February, KPC terminated its agreement with Taiwan’s Formosa for around 80,000 tons of naphtha lifting April 2008-March 2009. KPC’s three largest yearly contract holders include Marubeni, Mitsubishi Chemical and Maruzen. Mitsubishi Chemical and Maruzen are holding to their bids at a premium of US$10-11/MT premium to KPC’s offer vs its initial offer about 8 dollars higher. KPC also awaits acceptance by Haldia Petrochemical of 300,000 tons of the full-range naphtha under the December-November contract.