[OIL ]

www.platts.com
LPGASWIRE
Volume 36 / Issue 3 / January 6, 2014

Asia LPG ($/mt) (PGL page 2780) Market Commentary

Code Mid Change Code Mid Change
CFR Refrigerated Diffs to Saudi CP strip Asia LPG (PGL page 2798)
11:11 Singapore-Japan (H1 Feb) AASGO00 937.000 -24.000
11:11 Singapore-Japan (H2 Feb) AASGP00 922.000 -21.000
11:11 Singapore-Japan (H1 Mar) AASGQ00 907.000 -19.000 Asian LPG prices extended their fall Monday to two-
11:11 Singapore-Japan cargo* AASGN00 929.500 -22.500 month lows, driven by a volatile swaps market and
Propane Japan cargo (H1 Feb) AAVAK00 934.00–936.00 935.000 -24.000 Propane Japan PMAAX00 -2.00/-1.00 -1.500 +1.500
Propane Japan cargo (H2 Feb) AAVAL00 919.00–921.00 920.000 -21.000
pressured by bidders seeking cargoes at low levels in
Propane Japan cargo (H1 Mar) AAVAM00 904.00–906.00 905.000 -19.000 the face of ample offers. The slide on LPG outstripped
Propane Japan cargo* PMAAV00 927.00–928.00 927.500 -22.500
the almost $8/mt fall on ICE Brent crude futures from
Propane South China cargo AABAK00 928.00–930.00 929.000 -24.000 Propane South China AABAI00 -82.00/-80.00 -81.000 -24.000
Propane Taiwan cargo AABAN00 929.00–931.00 930.000 -24.000 Propane Taiwan AABAO00 -81.00/-79.00 -80.000 -24.000 the previous Asian close. The price of propane cargoes
Propane North Asia Zone AAJTQ00 928.00–929.00 928.500 -23.500 for delivery along the Singapore-Japan route 30-45
Propane Korea PMABK00 -5.00/-4.00 -4.500 +1.500
days forward was assessed down $24/mt from Friday’s
Butane Japan cargo (H1 Feb) AAVAN00 944.00–946.00 945.000 -24.000 Butane Japan PMAAH00 -2.00/-1.00 -1.500 +1.500
Butane Japan cargo (H2 Feb) AAVAO00 929.00–931.00 930.000 -21.000 session, at $935/mt -- the lowest since November 4,
Butane Japan cargo (H1 Mar) AAVAP00 914.00–916.00 915.000 -19.000 when it was at $925/mt. Butane was also assessed
Butane Japan cargo* PMAAF00 937.00–938.00 937.500 -22.500
Butane South China cargo AABAU00 938.00–940.00 939.000 -24.000 Butane South China AABAT00 -82.00/-80.00 -81.000 -24.000
down $24/mt at $945/mt -- the weakest since October
Butane Taiwan cargo AABBH00 939.00–941.00 940.000 -24.000 Butane Taiwan AABBI00 -81.00/-79.00 -80.000 -24.000 25, when it hit $941/mt. The front month CP propane
Butane North Asia Zone AAJTT00 938.00–939.00 938.500 -23.500 swaps was heard traded during the Asian session at
Butane Korea PMABL00 -5.00/-4.00 -4.500 +1.500
CFR Pressurized Diffs to Saudi CP strip
$897/mt, down from $910/mt on Friday. It was later
LPG Vietnam AAWUV00 972.00–974.00 973.000 -24.000 LPG Vietnam AAWUW00 68.00/70.00 69.000 -11.000 traded twice during the London session at $898/mt
LPG Philippines AAWUX00 977.00–979.00 978.000 -24.000 LPG Philippines AAWUY00 73.00/75.00 74.000 -11.000 and then at $890/mt, before being discussed around
FOB Pressurized Diffs to Saudi CP strip
$888/889/mt. “Seems the market will continue to
LPG East China AAWUZ00 938.00–940.00 939.000 -24.000 LPG East China AAWVA00 34.00/36.00 35.000 -11.000
LPG South China AAWVB00 938.00–940.00 939.000 -24.000 LPG South China AAWVC00 34.00/36.00 35.000 -11.000 be weak, unless the cold US weather stops the fall
LPG Singapore AAWVD00 943.00–945.00 944.000 -24.000 LPG Singapore AAWVE00 39.00/41.00 40.000 -11.000 eventually,” one market source said. Despite the
*An average of the first two half-month assessments
recent drop from peaks above $1,160/mt for propane
Middle East LPG (PGL page 2776) during end-November, Japan’s Tokyo Electric Power
Code Mid Change Code Mid Change Company still deemed current prices too high and had
FOB Arab Gulf Diffs to Saudi CP no plans to buy additional volumes for January, other
Propane cargo PMUDM00 930.00–932.00 931.000 -25.000 Propane vs CP PMABF00 1.00/3.00 2.000 -1.000
than the 10,000 mt of propane procured as its first
Propane vs CP M1 (Feb) AAKZA00 1.00/3.00 2.000 -1.000
Propane vs CP M2 (Mar) AALAM00 -1.00/1.00 0.000 0.000 shipment of US LPG in early January, a source close
Butane cargo PMUDR00 940.00–942.00 941.000 -25.000 Butane vs CP PMABG00 1.00/3.00 2.000 -1.000 to the matter said. Instead, Tepco is now looking to
Butane vs CP M1 (Feb) AAKZB00 1.00/3.00 2.000 -1.000
Butane vs CP M2 (Mar) AALAN00 -1.00/1.00 0.000 0.000
use its oil stocks for January, though it will use about
Propane CP strip (Japan-Korea)* AAKZC00 928.00–930.00 929.000 -24.000 5,000 mt of LPG for a brief test run of its 600 MW
Butane CP strip (Japan-Korea)* AAKZD00 938.00–940.00 939.000 -24.000 No. 4 Anegasaki unit, which is due to restart from a
Propane CP strip (China-Taiwan)** AAKZE00 1009.00–1011.00 1010.000 0.000
Butane CP strip (China-Taiwan)** AAKZF00 1019.00–1021.00 1020.000 0.000 scheduled turnaround, the source said. LPG stocks
*loading 20-40 days; **loading 5-15 days in Japan are low, as reflected by a 10.2% month-on-
 LPGASWIRE january 6, 2014

European LPG ($/mt) (PGL page 1775) month drop in end-November to 2.2 million mt, due to
Code
Propane Mid Change Code Butane Mid Change winter heating demand, the Japan LPGas Association
Northwest Europe had said last month. Sources said stocks will continue
FOB Seagoing PMABB00 854.75–855.25 855.000 -15.000 FOB Seagoing PMAAL00 1029.75–1030.25 1030.000 -30.000 to ease in the coming months as consumers draw on
FOB ARA PMAAS00 884.75–885.25 885.000 0.000 FOB ARA PMAAC00 849.75–850.25 850.000 -10.000
inventories to meet winter demand, rather than resort
FCA ARA* PMABH00 924.75–925.25 925.000 0.000 FCA ARA* PMABI00 854.75–855.25 855.000 -10.000
CIF 1-3k mt PMAAZ00 909.75–910.25 910.000 -10.000 CIF 1-3k mt PMAAJ00 969.75–970.25 970.000 -40.000 to imports, especially in a high priced environment. The
CIF 7000+ mt PMABA00 871.75–872.25 872.000 -3.000 CIF 3000+ mt PMAAK00 954.75–955.25 955.000 -2.000 spread between February FEI propane swaps and Mean
FOB 7000+ mt AAVKH00 848.75–849.25 849.000 -3.000 FOB 3000+ mt AAVKI00 914.75–915.25 915.000 -2.000
of Platts Japan naphtha swaps narrowed slightly to a
Western Mediterranean
discount of $29.25/mt, compared with minus $33/
FOB Ex-Refinery/Storage PMABC00 896.75–897.25 897.000 -3.000 FOB Ex-Ref/Storage PMAAM00 1144.75–1145.25 1145.000 -20.000
FCA Ex-Refinery/Storage* PMABJ00 896.75–897.25 897.000 -3.000 mt on Friday, still not making LPG attractive enough as
CIF 7000+ mt PMABE00 871.75–872.25 872.000 -3.000 an alternative petrochemical feedstock. The physical
*FCA ARA refers to sales onto railcars and trucks in the Amsterdam-Rotterdam-Antwerp region market saw four offers and two bids at low levels. No
trades were seen.
Naphtha ($/mt) LPG Postings ($/mt)
Code Mid Change
Middle East LPG (PGL page 2799)
Saudi Contract Postings (PGL page 2790)
Europe (PGA page 1310 & 1320) Saudi Propane CP (Jan) PTAAM10 1010.00
CIF ARA cargo PAAAL00 923.25–923.75 923.500 -2.750 Saudi Butane CP (Jan) PTAAF10 1020.00 Traders said that Qatar’s Tasweeq, which has excess
CIF Med cargo PAAAH00 910.00–910.50 910.250 -2.750 Algerian Postings (PGL page 1790) end-December loading cargoes that can be offered
Propane FOB Bethouia CP (Jan) PTAAI10 910.00 in January, has conducted private negotiations to
Propane FOB Skikda CP (Jan) PTAAJ10 910.00 offer one cargo. No further details were available.
Month to Date Averages ($/mt) Butane FOB Algeria CP (Jan) PTAAC10 1005.00
However, Saudi Aramco, which last sold a cargo early
Code Mid Change
November, has no offers to show for end-January or
Northwest Europe Month to Date (PGL page 1775)
Propane FOB Seagoing PMUDI00 873.08–873.58 873.330 -9.170
Propane swaps early February. “Local demand is somewhat stable,”
Propane CIF 7000+ mt PMUDK00 882.08–882.58 882.330 -5.170 Code Mid Change one source said, adding that the lack of offers was
Middle East Month to Date (PGL page 2776) Northwest Europe ($/mt) (PGL page 1775) also due to production levels and term commitments.
Propane cargo PMUDO00 955.67–957.67 957.000
-13.000 M1 (Feb) AAHIK00 826.00–830.00 828.000 +3.000 In the face of limited Saudi offers, some North Asian
Butane cargo PMUDQ00 965.67–967.67 967.000
-13.000 M2 (Mar) AAHIM00 786.00–790.00 788.000 +1.000 buyers were turning to procure cargoes from Iran,
M3 (Apr) AAHIO00 743.00–747.00 745.000 +6.000
sources said.
LPG Shipping ($/mt) Q1 (Q2 2014) AAHIL00 727.00–731.00 729.000 +2.000

From: To: Product Cargo size Code $/mt

Q2 (Q3 2014) AAHIN00 724.00–728.00 726.000 +2.000
West Mediterranean LPG (PGL page 1797)
US Gulf Coast ($/barrel) (PGA page 780)
(PGL page 1786) M1 (Feb) AAHYX00 120.45–120.55 120.500 0.000
Norway Netherlands Propane 20kt AAVKK00 23.00 M2 (Mar) AAHYY00 111.15–111.25 111.200 0.000 The butane market remained relatively quiet Monday
Norway Netherlands Butane 10kt AAVKJ00 40.00 M3 (Apr) AAHYZ00 105.65–105.75 105.700 0.000 with no public buying interest seen for spot Lavera
(PGL page 2786) product despite spot availability in other areas of
Q1 (Q2 2014) PMABS00 112.40–112.50 112.450 0.000
Persian Gulf Japan LPG 11-44kt AAPNI00 57.50 the Mediterranean still reported to be fairly tight.
Q2 (Q3 2014) PMABT00 104.95–105.05 105.000 0.000
Persian Gulf South China LPG 11-44kt AAPNG00 52.50
Persian Gulf East China LPG 11-44kt AAPNH00 55.50 Saudi CP ($/mt) (PPA page 2652) The propane market was busy on imports with about
Thailand Guangzhou LPG 1-3kt AAPNJ00 139.50 M1 (Feb) AAHHG00 896.98–897.02 897.000 -13.000 90,000 mt said to be either discharging at Lavera or
Thailand Guangxi LPG 1-3kt AAPNK00 137.50 M2 (Mar) AAHHH00 870.98–871.02 871.000 -4.000
due to arrive shortly, but more subdued on exports
Thailand Shantou LPG 1-3kt AAPNL00 140.50 M3 (Apr) AAHHI00 835.98–836.02 836.000 -4.000
Japan Shanghai LPG 1-3kt AAPNM00 89.50 with only a 3,600 mt cargo for Italy currently loading at
Korea Shanghai LPG 1-3kt AAPNN00 74.50 Q1 (Q2 2014) AAHHJ00 807.98–808.02 808.000 -4.000 Lavera.

Copyright © 2014, McGraw Hill Financial 2

 LPGASWIRE january 6, 2014

US LPG (PGA page 780) Northwest Europe Propane (PGL page 1798)

Code Mid
Change Code Mid
Change
Spot propane cargo prices were marginally weaker Monday.
Mont Belvieu non-LST (¢/gal) Mont Belvieu LST (¢/gal)
Ethane/propane mix M1 PMUDA05 31.45–31.55 31.500 +0.500 Although public buying interest for January product remained
Ethane/propane mix M2 AAWUB00 31.30–31.40 31.350 +0.500 thin, there were increasing signs that, at the current CIF
Ethane purity M1 PMUDB05 27.95–28.05 28.000 +0.250 naphtha/CIF propane price differential, sufficient petchem
Ethane purity M2 AAWUC00 27.80–27.90 27.850 +0.250
Propane M1 PMAAY00 123.70–123.80 123.750 +0.750 Propane M1 PMABQ00 123.70–123.80 123.750 +0.750
demand could emerge to provide support to spot propane
Propane M2 AAWUD00 121.20–121.30 121.250 0.000 Propane M2 AAWUE00 121.20–121.30 121.250 0.000 “At these price levels, it makes sense [to crack propane],”
Normal butane M1 PMAAI00 139.70–139.80 139.750 -0.250 Normal butane PMABR00 138.70–138.80 138.750 -0.250 said a petchems trader. Vitol was a buyer of 20,600 mt
Normal butane M2 AAWUF00 138.20–138.30 138.250 -0.250
CIF January 16-20 at $875/mt and balance January quotes
Isobutane PMAAB00 142.70–142.80 142.750 -0.500 Isobutane AAIVD00 142.70–142.80 142.750 -0.500
Natural gasoline (non-Targa) M1 PMABY05 205.65–205.75 205.700 +0.700 Natural gasoline AAIVF00 213.70–213.80 213.750 +0.750
flat/mt, but no deal was said concluded. According to
Natural gasoline (non-Targa) M2 AAWUG00 204.70–204.80 204.750 +0.500 sources, activity on the coaster propane market was a bit
Natural gasoline (Targa) PMABW05 213.70–213.80 213.750 +0.750 sluggish with a lack of cold weather curbing demand. Spot
($/mt) supplies, however, were said to be fairly good with both
Propane AAXDD00 644.73–644.75 644.735 +3.905 Tees and refinery product available. There were no reported
Normal butane AAXDC00 633.06–633.08 633.070 -1.130
trades. Activity on the ARA propane market was extremely
Conway, Kansas (¢/gal) Bushton, Kansas (¢/gal) thin, also because of mild weather and with a number of
Ethane/propane mix PMAAO00 21.45–21.55 21.500 -0.500
German traders away from their desks for a public holiday.
Propane PMAAT00 143.70–143.80 143.750 +1.250 Propane AALBE00 143.70–143.80 143.750 +1.250
Normal butane PMAAD00 142.95–143.05 143.000 0.000 “There is not much to do,” said one industry source. “There
Isobutane PMAAA00 146.45–146.55 146.500 +2.500 is not a shred of [buying] interest,” said an ARA trader.
Natural gasoline PMAAQ00 201.45–201.55 201.500 -1.500 There were no confirmed public deals on either the FCA or
The River* (¢/gal) Hattiesburg pipeline (¢/gal) the FOB markets.
Natural gasoline AALBG00 215.95–216.05 216.000 -1.000 Propane AALBC00 141.95–142.05 142.000 0.000
Note: Spot prices exclude terminalling; *The River means on barges in various points of Mississippi River in Louisiana.
Northwest Europe Butane (PGL page 1799)
Waterborne FOB Houston ($/mt) Waterborne FOB Houston (¢/gal)
Propane AAXIM00 760.65–760.67 760.660 -17.715 Propane AAXIN00 145.99–146.01 146.000 -3.400
Spot prices for mixed butane cargoes eased Monday. The
Propane vs. Mt Belvieu AAXIO00 125.03–125.05 125.040 -15.630 vs. Mt Belvieu AAXIP00 23.95–24.05 24.000 -3.000
market was a bit busier with some mixed product said to be
VLGC Freight Rates ($/mt) VLGC Freight Rates (¢/gal)
Houston to NWE AAXIQ00 55.00 Houston to NWE AAXIR00 10.56
Houston to Japan AAXIS00 155.00 Houston to Japan AAXIT00 29.75 NYMEX Futures
Platts Futures Assessments 3:15 pm ET* (PGA page 703)
$/barrel
Light sweet crude (Feb) NYCRM01 93.71
LPGASWIRE Volume 36 / Issue 3 / January 6, 2014 Light sweet crude (Mar) NYCRM02 93.89
Light sweet crude (Apr) NYCRM03 93.83

Editorial: Esa Ramasamy, Editorial Director, Americas Oil: +1-713-658-3292, Matt Cook, Senior Managing Editor, Americas Clean Products +1-713-658-3208, Futures Settlement (PGA page 702)
Sharmilpal Kaur, Associate Editorial Director, Americas PFC, Crude and Residual Fuel +1-713-655-2270 $/MMBtu
Client services information: North America: +1 800-PLATTS8 (+1-800-752-8878); direct: +1-212-904-3070 Europe & Middle East: +44-20-7176-6111 Natural gas (Feb) AACMZ00 4.31
Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: support@platts.com
$/barrel
Copyright © 2014 McGraw Hill Financial. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system Light sweet crude (Mar) AASCS00 93.84
or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of McGraw Hill Financial. Information has been obtained from sources
believed reliable. However, because of the possibility of human or mechanical error by sources, McGraw Hill Financial or others, McGraw Hill Financial does not * These assessments reflect prevailing futures value exactly at 3:15 pm ET.
guarantee the accuracy, adequacy or completeness of any such information and is not responsible for any errors or omissions or for results obtained from use of such However, on the business day preceding the following holidays these assess-
information. See back of publication invoice for complete terms and conditions. ments reflect the value of futures at precisely 1:30 pm ET: Christmas Day, New
Years Day, Fourth of July, and Thanksgiving Day.

Copyright © 2014, McGraw Hill Financial 3

 LPGASWIRE january 6, 2014

available but, according to sources, there was also some matter told Platts Monday, citing high prices. Instead, several agreements in place to import LPG from the US’
second half of January buying interest as well. The CIF Tepco is now looking to use its oil stocks for January, Enterprise Products Partners. Tepco will receive its share
coaster butane market was dormant, with not much good though it will use about 5,000 mt of LPG for a brief test of the US shipment -- 10,000 mt of propane -- on board
quality spot product likely to be available prior to the second run of its 600 MW No. 4 Anegasaki unit, which is due the Nadeshiko Gas tanker at its Anegasaki plant in Tokyo
decade of January and with buying interest within northwest to restart from a scheduled turnaround, the source said. Bay, where it has propane and butane storage tanks. It
Europe seen to be sparse. The FOB coaster market was a In November, Tepco bought around 100,000 mt of LPG wasn’t immediately clear how much LPG Tokyo Gas would
bit more active. Statoil was a seller of 1,900 mt FOB Karsto -- down 17% from 120,000 mt initially projected for the be receiving. Tepco has four propane storage tanks at its
January 16-18 and offered down to $1,010/mt, but no bid month -- and used around 70,000 mt, down 30% from Anegasaki plant, comprising two 45,000 kl (45,000 cubic
was received. The ARA butane market made its usual slow 100,000 mt planned earlier. Regional LPG prices were meter) tanks and two 60,000 kl tanks. It also has four
start as refiners calculated their product balances for the estimated to have jumped in November by almost 30% 40,000 kl butane storage tanks at Anegasaki.
next few days. Both buying and selling interest appeared to month-on-month for December-delivery cargoes along the
be quite thin, with gasoline blenders continuing to show a major Singapore Japan route, reaching a record high for Indonesian president orders Pertamina
relaxed attitude toward the purchase of any spot product. butane at $1,291/mt and around a 20-month peak for
to review hike in non-subsidized LPG
propane, at $1,166/mt, on December 3. Prices have
US Gulf Coast (PGA page 799) since fallen steadily throughout December for January- Indonesia’s President Susilo Bambang Yudhoyono on
delivery cargoes, though they have held above year-ago Sunday asked state-owned Pertamina to review a 68%
Spot Mont Belvieu January natural gasoline edged levels at around $1,100/mt for propane and more than hike it imposed last week on the retail price of non-
higher Monday as a rangebound NYMEX February RBOB $1,200/mt for butane. By last Friday, the price of propane subsidized LPG, after complaints emerged from the
contract failed to provide firm direction. Platts assessed cargoes for delivery along the Singapore-Japan route public. “As a shareholder of Pertamina, the government
January natural gasoline at $2.057/gal, 70 points for first-half February cargoes was assessed at $959/ [asks] Pertamina to review the price hike policy,”
higher from Friday, as Trafigura and Oneok set Monday’s mt, the lowest since November 6, while butane was Yudhoyono said, according to the presidential website.
market in a MOC transaction for 25,000 barrels. assessed at $969/mt, the weakest since November 4. “I am asking Pertamina, along with related ministers, to
Propane was also stronger by nearly as much, assessed In December, Tepco received around 30,000 mt of LPG, complete the review within a day,” he added. The review
at $1.2375/gal, evading a wider Brent-WTI spread. The which the company had bought in November, the source is expected to be completed on Monday. The request
backwardation between January and February grew to said. Tepco did not buy any LPG in December due to for the review emerged after a cabinet meeting led by
2.5 cents, from 1.25 cents Friday. The backwardation high prices, the source added. In December, Tepco used Yudhoyono Sunday. The state-owned oil and gas company
in January and February natural gasoline for non- 20,000-30,000 mt of LPG for power generation at its last Wednesday announced the 68% price increase for
Targa barrels narrowed to 1 cent, while Targa barrels Anegasaki plant in Tokyo Bay, the source added. Japan’s the non-subsidized LPG segment -- the first hike in more
maintained an 8-cent premium, unchanged from Friday. winter power demand season typically spans December- than four years -- in an effort to reduce continuing losses
March, when lower temperatures have a direct impact on from LPG sales. It explained that the price had to be
crude oil, fuel oil, LPG and LNG consumption for thermal raised due to the weakening rupiah versus the US dollar,
News (PGA page 100) power generation. Japan currently does not have any and also due to a large gap between the domestic retail
nuclear reactors in operation. In January, Tepco is set price and international market price. The price of non-
Japan’s Tepco does not plan to buy to receive its first US LPG cargo along with Tokyo Gas. subsidized 12-kg canisters was pushed up by Rupiah
Tepco and Tokyo Gas will receive the shipment under their 3,959/kg ($0.33/kg) from Rupiah 9,809/kg with effect
extra LPG in January: source
term purchase agreement with Japan’s top LPG importer, from January 1, 2014, which translates to a price of
Japan’s Tokyo Electric Power Company does not plan Astomos Energy, and pay a price linked to Mont Belvieu, a Rupiah 117,708 for each 12-kg canister, Platts previously
to buy additional volumes of LPG in January other than source said earlier. Astomos said in February that it would reported. Pertamina sells LPG under two categories --
the 10,000 mt of propane already procured as its first supply 200,000 mt of LPG to Tepco over 2013-15 and subsidized and non-subsidized. The non-subsidized LPG
shipment of US LPG in early January, a source close to the 400,000 mt to Tokyo Gas over 2013-18. Astomos has is sold in 12-kg canisters at government-capped prices,

Copyright © 2014, McGraw Hill Financial 4

 LPGASWIRE january 6, 2014

but Pertamina is not compensated for losses incurred sources said Monday. Around five vessels have recently days ago, a shipping source said. The vessel is currently
from sales at below international market prices. The been loaded or waiting to lift cargoes at Iranian ports in the Arabian Sea, off India’s southwest coast, and may
non-subsidized LPG is typically consumed by middle and for shipments to Asia, according to trade and shipping be on the way to Taphong, in Thailand’s southeastern
high-income households and industries. Subsidized LPG sources and Platts ship-tracking software, cFlow. A Rayong province, according to cFlow. “There are some
is sold by the government in 3-kg canisters at Rupiah Middle Eastern source said although the LPG shipping other LPG carriers standing at Assaluyeh in queue,” one
4,250/kg, and the price of these canisters was not and port activities might be busier than usual, it was source said. These include the Gas Crystal for China’s
affected. The price hike followed a recommendation too early to say that these are in anticipation of the Jovo Energy, Schumi for Siam Gas and Gas Magic, the
by Indonesia’s Supreme Audit Agency, known as BPK, partial lifting of Western sanctions slated for January source added. Exports of Iranian LPG largely returned to
which said Pertamina’s LPG business suffered losses 20. Experts from Iran and the P5+1 -- the US, UK, normal in the second half of 2013, since shipments to
mainly due to the capped-price of the 12-kg canisters. France, Russia and China plus Germany -- have been Asia resumed in May, ending an eight-month halt due
The government said that even though the non-subsidized holding technical talks on implementing a pact reached to an EU ban on shipping insurance for propane and
LPG price falls under Pertamina’s control, the government November 24 under which Iran will curb or freeze its butane from Iran. Other than the country’s top exporter
has to take into account the social and economic impact nuclear program in exchange for sanctions relief. “These of petrochemical products, Petrochemical Commercial
when the public considers the price to be too high,” [shipments] are...running despite the sanctions,” the Co., companies such as Kharg Petrochemical Co. Ltd,
Yudhoyono said. “Adjustments and price increases should Middle East source said. “Only when we see the majors National Iranian Oil Co. and Iran Gas Commercial Co.,
take into consideration the ability and purchasing power, and big trading companies coming (to Iran) to lift cargoes had also been exporting, said sources familiar with
and can be reached in stages in order not to trouble with 44,000 mt vessels, can we say that the sanctions shipping operations. The availability of Iranian cargoes,
public,” the president said. According to local media have been lifted.” National Iranian Gas Company, mainly sold via direct negotiations and headed mainly to
reports, the public and political parties such as the ruling or NIGC, recently offered 31,000 mt of propane and China, South Korea and Thailand, is helping to fill any
Democrat Party, have opposed the price hike. 11,500 mt of butane on a CFR basis for first-half January spot supply gaps in Asia whenever other Middle Eastern
delivery, via a rare tender which closes January 7, trade producers, especially Saudi Aramco, limited their offers,
Iran exporting LPG to Asia ahead of sources said. The shipment was offered on a CFR, traders said. Aramco is not expected to offer any cargoes
instead of FOB, basis because the vessel -- the name of for end-January/early February loading, after selling its
sanctions relief: sources
which was not immediately known -- had already loaded last cargo in early November, trade sources said. Some
Iran is exporting a steady flow of LPG to Asia, even its cargo from an Iranian port on November 20 and had Chinese companies, such as Jovo Energy, have also
before the interim deal requiring Tehran to freeze or been seeking a buyer since, traders said. Another very concluded or are close to sealing term supply contracts
curb its nuclear activities for six months in exchange for large gas carrier, Gas Beryl, has loaded a 44,000 mt with Iranian LPG producers for this year, industry sources
some sanctions relief takes effect, trade and shipping mixed propane/butane cargo from Assaluyeh several have said.

Copyright © 2014, McGraw Hill Financial 5