Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Natural Gas | Oil

ADNOC accepts Aug LPG term nominations, most buyers nominate H2 Aug loading

Coal | Electric Power | Renewables | LNG | Natural Gas | Coronavirus

Price transparency a key factor in expanding hydrogen trade flows in Asia

LNG | Natural Gas | NGL

Platts LNG Alert

Capital Markets | Commodities | Electric Power | Natural Gas

Mexican Energy Conference, 24th

Oil | Crude Oil | Refined Products | Shipping

Hin Leong founder OK Lim charged in Singapore court for abetment of forgery for cheating

ADNOC accepts Aug LPG term nominations, most buyers nominate H2 Aug loading

Highlights

ADNOC acceptance in line with QPSPP from last week

May lead to more spot AG tenders for H1 Aug loading

Singapore — Abu Dhabi National Oil Co., or ADNOC, has announced acceptances of term LPG nominations for August loading without cuts or delays, similar to that for July loading, traders said on July 13.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The move is in line with Qatar Petroleum for the Sale of Petroleum Products' acceptance of nominations in the previous week.

"We have not heard any cuts or delays, despite most buyers nominating for H2 August lifting," said a Singapore-based trader.

"Our operations with [ADNOC] for term lifting is going on smoothly," said a Southeast Asian term taker on July 13.

"No cuts or delays that we have heard," said a Japanese trader on July 13, concurring that ADNOC has accepted August LPG term nominations from buyers for August without cuts or delays.

NOMINATIONS MOSTLY FOR H2 LOADING

Traders have pointed out that it makes sense for buyers to nominate term cargoes with Middle Eastern suppliers for second-half August loading, to leverage on the current $13/mt contango between H1 August and H1 September in the CFR North Asia market.

"Most of the nominations are for H2 August lifting, similar to Qatar Petroleum's August nominations," the source added.

This could in turn pressure Middle Eastern sellers to offer more spot tenders for H1 August loading to relieve some inventory pressure, according to participants.

"It makes sense given the reported slow steaming and longer routing of VLGCs from the West to try and take advantage of the upward curve," said a Southeast Asian LPG buyer on July 13.

DISCOUNT TO FOB AG

Front month August CP propane swap was notionally indicated mid-day on July 13 at $347/mt, down from $348/mt on July 9. CP August/September propane swap spread notionally widened to plus $3/mt on July 13, compared with plus $1/mt on July 9.

Meanwhile, the August propane Far East Index swaps was notionally at a $9/mt discount to the CP swaps, indicative of the large price inversion between FOB Arab Gulf and CFR North Asia for August.

Kuwait Petroleum's latest tender offering 44,000 mt mixed LPG comprising 33,000 mt of propane and 11,000 mt of butane for August 4-5 loading, was awarded late July 10 at August CP minus around $30/mt, said traders, as OPEC+ oil production cuts fail to stem widening discount for FOB Arab Gulf propane differentials.

The discount was assessed at $21/mt on July 9. Pressure remains on the FOB AG market as Asian end-users peg their buying price for AG cargoes against competitively priced Western cargoes, said participants.

The front-cycle CFR North Asia H1 August physical propane was last assessed at $320.50/mt on July 9, at a discount of $27.50/mt to August CP swap, Platts data showed.