9 June 2017

India’s second-largest state-controlled refiner, Bharat Petroleum (BPCL), has revised its naphtha formula price to include fob Mideast Gulf naphtha assessments published by leading global commodity price reporting agency Argus. BPCL has sold 120,000t of naphtha in deals priced against the mean prices of Argus and price reporting agency Platts’ naphtha assessments, since revising its formula price.

Argus naphtha prices are currently used by India’s largest state-owned refiner IOC and Abu Dhabi’s state-owned oil firm Adnoc in their spot sales. Naphtha is likely to remain the main feedstock for the fast-growing petrochemical industry in Asia for years to come. South Korea, a key petrochemicals hub in northeast Asia, imported over 550,000 b/d of naphtha last year, an increase of more than 7pc since 2011. Refiners in India and the Mideast Gulf supply almost half of northeast Asia’s naphtha imports.

Argus Media chairman and chief executive Adrian Binks said: “We are pleased that BPCL has selected Argus prices for its naphtha exports in its recent tenders. This shows the quality of our price reporting and the confidence of the market in our methodology.”

Argus publishes daily Mideast Gulf spot naphtha price assessments in Argus Asia-Pacific Products. This report provides price assessments, news and market commentary on the international bulk spot markets for oil products in Asia-Pacific and the Pacific Rim.