UAE firm in deal to supply naptha to Lotte Chemical Titan
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Lotte Chemical Titan Holding Bhd’s wholly owned subsidiary Lotte Chemical Titan Sdn Bhd has entered into a three-year sales contract with United Arab Emirates-based Abu Dhabi National Oil Co for the supply of refined products and paraffinic naphtha.
The group announced in a stock exchange filing that the contract runs from Jan 1, 2018 to Dec 31, 2020.
Pricing of the supplies will be based on the market price of the commodity during the loading month. The estimated quantity is between 600,000 tonnes and 1 million tonnes a year.
ADNOC is a major feedstock supplier of naphtha to Lotte and had previously supplied the commodity in a one-year contract.
Lotte’s shares gained 0.39% to close at RM5.18 with some 731,300 shares done.
Questions & Answers
Q.Which company will be supplying the refined products and naphtha to Lotte Chemical Titan?
Which company will be supplying the refined products and naphtha to Lotte Chemical Titan?
The supplies will come from Abu Dhabi National Oil Co, a firm based in the United Arab Emirates. This company has previously supplied naphtha to Lotte under a one-year contract.
Q.What is the duration of this new sales contract between the two companies?
What is the duration of this new sales contract between the two companies?
The contract is for a period of three years. It is scheduled to run from January 1, 2018, until December 31, 2020, as announced in a stock exchange filing.
Q.How will the price of the supplied naptha and refined products be determined?
How will the price of the supplied naptha and refined products be determined?
The pricing for these supplies will be based on the market price of the commodity. This market price will be observed and applied specifically during the month of loading.
Q.What quantity of material is expected to be supplied under this new contract each year?
What quantity of material is expected to be supplied under this new contract each year?
The estimated annual quantity to be supplied under the agreement is between 600,000 tonnes and 1 million tonnes. This volume covers both refined products and paraffinic naphtha.
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