MEOG: QatarEnergy renews naphtha deal

State-owned QatarEnergy this week signed a new 10-year deal to supply naphtha to Japan’s Marubeni Corp. The deal calls for the supply of 1.2mn tonnes per year (tpy) of naphtha between subsidiaries Qatar Petroleum for the Sale of Petroleum Products Company (QPSPP) and Marubeni Petroleum, beginning in October.

The Qatari firm said that the deal is based on “the successful and long-term relationship enjoyed between both entities and builds on the five-year naphtha sales agreement signed in 2018,” which expires this month.

In a press release on its website, QatarEnergy quoted CEO and Qatari Minister of State for Energy Affairs HE Saad Sherida Al Kaabi as saying: “This agreement further enhances the long-standing, strategic and fruitful relationship between QatarEnergy and Marubeni Corp., spanning several decades. We are proud of the continued cooperation with our Japanese partners such as Marubeni Corp., which reinforces Japan’s trust in Qatar as a reliable energy provider while further fostering co-operation between the two countries.”

It noted that the Japanese firm has received a continuous supply of various grades of Qatari naphtha since 1986, with the cargoes largely used as a feedstock in the production of petrochemicals.

QPSPP offers six different grades of naphtha in cargoes ranging from 25,000-50,000 tonnes, all of which are largely consumed by Asian cracking facilities as petchem feedstock.