Idemitsu Purchases Naphtha from Bharat Petroleum
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Friday, 22 January 2010 |
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Idemitsu Kosan Co has purchased naphtha consignmnet cargo from Bharat
Petroleum Corp Ltd (BPCL) by tender for the first time in more than a
year at high premiums.
Idemitsu, which no longer holds a December-November term contract
with Kuwait as of last year, paid around $35.00 a tonne premium to
Middle East quotes, on a free-on-board (FOB) basis, for the
30,000-tonne parcel for February.
The parcel is slated for February 14-18 lifting from Mumbai port. The
premium it paid was considered high by some traders. But others said
Idemitsu could be left with limited choices in a market marked by tight
supplies, especially when its inventory levels are low.
But Idemitsu, whose December-November term purchase contract with
Kuwait was terminated alongside other Japanese customers, have strict
specifications guidelines, and is not keen on arbitrage volumes.
Idemitsu’s volumes with Kuwait Petroleum Corp (KPC) for the 12-month
delivery period were below 75,000 tonnes. It is not surprising that
Idemitsu won the BPCL tender as end users have been trying to get their
hands on FOB tenders according to traders n Singapore.
PetrolWorld 140110
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