Kuwait Petroleum Corp (KPC) has sealed new annual naphtha supply deals at lower premiums than a year ago, three sources with knowledge of the matter said on Tuesday.

 

The producer sold full-range naphtha at a premium of $8 a tonne above Middle East quotes and light naphtha at a premium of $9.50 a tonne on a free-on-board basis, they said.

 

The cargoes will load from August 2017 to July 2018.

 

KPC's naphtha exports are expected to fall after it permanently shut a refinery in Shuaiba earlier this year, but the availability of cheaper liquefied petroleum gas (LPG) and lower margins for petrochemicals such as ethylene have likely weighed on naphtha prices, multiple sources with knowledge of the market said.

 

KPC last sold full-range naphtha for August 2016 to July 2017 at a premium of $9 a tonne. --Reuters