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Article: Saudi LPG Pricing Creates A New Spot Market With Far Reaching Implications
- Article from:
- APS Review Gas Market Trends
- Article date:
- December 19, 1994
CopyrightCOPYRIGHT 1994 Input Solutions. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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APS understands that Saudi Aramco's new pricing approach for LPG, introduced from the beginning of last October, is a test for a wider range of measures which could have far reaching implications. It has caused a new Middle East spot market for gas liquids to emerge, with its consequences to be felt in the coming months, and could lead to a spot market for naphtha and other products. APS sources warn that it could also lead to a change in Saudi Aramco's pricing of natural gas and LPG supplied to the domestic market.
The purpose of Saudi Aramco's approach is to maximise its revenue by eliminating intermediaries and cutting down on those factors which have affected ...