Naphtha wins highest bid since March last year    

Bangladesh Petroleum Corp (BPC) is to sell 170,000 barrels of naphtha to Vitol Asia in May at a premium of $0.12 a barrel to Singapore quotes on a free-on-board (FOB) basis, a company official said on Tuesday.

This is the highest tender bid BPC has received since March last year.

Seven firms had competed for the tender, which opened on Tuesday, for the loading over May 10-12 from Chittagong.

BPC logoUnipec came up with a discount of $0.38 a barrel while Itochu quoted a discount of $0.59 a barrel.

Other participants included MRI trading, with a discount of $0.65 a barrel, Socar, with a discount of $0.72 a barrel, Trafigura, with a discount of $1.90 a barrel, and Glencore, with a discount of $4.10 a barrel.

State-owned BPC sold a same-size cargo to trading firm Socar in February at a discount of $0.11 a barrel to Singapore quotes.

In March 2013, the BPC naphtha tender attracted a premium of $2.39 a barrel to Singapore quotes from the Singapore arm of Chinese trader Unipec.

Asia’s naphtha crack was flat on Monday at $134.70 a tonne, as more European cargoes were expected to reach Asia next month, although volumes may still not fully meet overall strong demand.

On average, the 1.5 million tonnes per year Eastern Refinery, a subsidiary of BPC, exports one 170,000 barrel naphtha cargo about every 45 days.

It resumed exports of naphtha in November after a four-month halt for maintenance and repairs at its sole refinery.

Apart from exporting, BPC sells naphtha domestically to privately-owned Super Petrochemical.

BPC is importing 1.3 million tonnes of oil in 2014 for the Eastern Refinery, up more than 8 percent from a year earlier.

-Reuters


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