KPC Signs First Naphtha FOB Deal at Destination Port
Kuwait Petroleum Corporation signed its first naphtha sale contract on a free-on-board basis at the destination port to avoid loading disruptions via the Strait of Hormuz.
Translated by Qiyas from الوسط — Original source
Sources familiar with the matter said on Thursday that the Kuwait Petroleum Corporation (KPC) had, for the first time, signed a fixed-term agreement to sell naphtha on a delivered-at-destination-port basis, amid disruptions to loading operations under the free-on-board (FOB) system via the Strait of Hormuz. The traders added that the contract covers full-load naphtha shipments scheduled for delivery between December 2026 and November 2027, at a premium of approximately $75 per ton above Japanese Crude Cocktail (JCC) prices. The new agreement aligns with the spot sale bidding mechanism adopted by KPC since the outbreak of the war in the Middle East, under which shipments have been delivered on a delivered-at-destination-port basis, reflecting adaptation to challenges in transporting cargoes amid disruptions to loading operations through the strait.
