JAPANESE PETROCHEMICAL FIRMS, SAUDIS TO DISCUSS LPG CONTRACTS

JAPANESE PETROCHEMICAL FIRMS, SAUDIS TO DISCUSS LPG CONTRACTS

Officials from Japanese petrochemical companies are scheduled to meet with the Saudi Arabian Marketing and Refining Co. in March to discuss renewing term contracts for liquefied petroleum gas.

Six Japanese petrochemical companies are scheduled to meet Samarec officials on March 14 in Jeddah, Saudi Arabia, petrochemical company sources said Wednesday. Meanwhile, several other Japanese companies that have not yet concluded term contracts this year are set to start term talks with Samarec on March 10, they said.However, trading and industry sources here said Samarec is unlikely to renew term contracts with the Japanese petrochemical companies.

Samarec's term LPG contracts with six Japanese petrochemical companies expired in early November. Under the contract, the Japanese companies bought 600,000 metric tons of LPG in 1991.

Trading sources here said Samarec told those petrochemical companies that it would not renew the contract after the November expiry as LPG availability is limited.

But petrochemical company sources here said it is possible that Samarec still has some LPG available to supply Japanese petrochemical companies after the company finishes term negotiations with its regular customers in Asia and Europe.

Samarec has so far committed to sell a total of about 2.5 million metric tons of LPG with seven Japanese companies, including trading houses, oil and gas companies, the trading sources said.

In 1991, Samarec sold a total of more than 6 million metric tons of LPG to its Asian customers.