Saudi Aramco May LPG term acceptances see minor loading delays: traders

Saudi Aramco announced acceptances of May-lifting term cargo nominations that were largely in line with nominations, but with slight loading delays, traders said April 20.

Saudi Aramco's term nominations for May were estimated at 400,000-450,000 mt, they added, slightly below shipments in April that were estimated above 500,000 mt.

For April-loading cargoes, Saudi Aramco's acceptances were also in line with nominations, though traders said there could be some cargoes deferred or delayed on lifters' request.

"Yes (Saudi Aramco) has announced. Slight delay I heard," one Asian trader said, referring to the May term acceptances.

But a Western trader said: "I didn't hear much delay."

Before this, Abu Dhabi National Oil Co. and Qatar Petroleum announced acceptances of May term nominations in line with lifters' nominations, while spot offers and trades of FOB Middle East cargoes were also heard, keeping Asia well supplied, traders said.

Chinese trader Sinochem was heard to have sold a 44,000 mt evenly split propane-butane cargo to an Indian buyer for May 12 loading, FOB Ras Tanura, at a $15/mt discount to the Saudi May contract prices, traders said.

Qatar Petroleum was closing a tender April 20 for next-day validity, offering 33,750 mt of propane and 11,250 mt butane, or a 45,000 mt evenly split cargo for May 23-29 loading.

This followed QP's sale of 45,000 mt propane, or a cargo comprising 33,750 mt of propane and 11,250 mt butane, at a discount of around $30s/mt to the April CPs. The cargo was initially for April 19-29 loading but the laycan was heard deferred to a later date, traders said.

Prices easing

Spot FOB Middle East propane hit around eight-year highs at $940/mt on March 7, before easing to $810/mt on April 7 and was last assessed at $878/mt on April 19, S&P Global Commodity Insights data showed.

Spot FOB Middle East butane also touched around eight-year peaks at $989/mt March 7, before falling to $820.5/mt on April 11 and was last assessed at $883/mt April 19, S&P Global data showed.

The month-one May Saudi CP propane swap was valued April 19 at $878/mt, down $7/mt on the day, and was $62/mt below the April term propane CP, which was $940/mt. On April 20, April CP swap was indicated at $854/mt.

Butane was indicated April 19 at $6/mt above propane, compared with $5/mt the day before.

If the month-one CP stays on the current track, the next Saudi term CPs for May, due to be announced by April 30, could see the first decline after three increases in a row.

Apart from healthy Middle East supply, spot demand for mixed cargoes from India has been weak.

Meanwhile, Chinese propane dehydrogenation plants have been operating at lower rates as they incurred losses from processing costly propane imports into propylene.