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Singapore: Abu Dhabi National Oil Co (Adnoc) has announced its January-December 2009 term naphtha premium at $3.00-$5.00 a tonne to Middle East quotes, on a free-on-board (FOB) basis, sharply lower than its June-December 2008 prices, traders said yesterday.
The firm has pegged the offer for its pentane-plus naphtha at $5.00 a tonne premium, low-sulphur naphtha at $4.00 a tonne premium and splitter naphtha at $3.00 a tonne premium.
These fresh offers are 75-80 per cent lower than what it had fixed for supplies lifting between June and December 2008.
Offers from Adnoc, Asia's third-largest supplier after Saudi Aramco and Kuwait Petroleum Corp (KPC), came shortly after KPC had fixed its premium for December 2008 to November 2009 supplies at $2.00 a tonne above Middle East quotes, on a FOB basis.
"Adnoc's offers did not surprise us, as they usually take the cue from KPC," said a term customer. However, many KPC customers had resisted the premium, citing a slump in petrochemical demand, which could last for at least six more months.
As a result, it took longer than usual for most of its customers to accept KPC's deal, which was expected to wrap up late yesterday.
"Most people will retain their term contract for relationship purposes, like in the case of Formosa, which accepted KPC premium but cut its volume," said a trader who is not an Adnoc term lifter.
Adnoc's customers in Asia include Hanwha Corp and Taiwan CPC Corp.
"We have to give an answer next Monday," said a second Adnoc term lifter.
Many KPC customers had resisted the premium, citing a slump in petrochemical demand.
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