Wednesday, December 1

MPRC applauds Platts’ move towards FOB Straits benchmark

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KUALA LUMPUR: The Petroleum Resources Corporation (MPRC) has applauded Platts’ recent move to approve four terminals in southern Malaysia as part of the free-on-board (FOB) Straits oil benchmark pricing which is the process of price assessment for refined oil products.

The four terminals are Pasir Gudang, Tanjung Langsat, Pengerang and Tanjung Bin.

In a statement yesterday, MPRC said with the FOB Straits, market participants would have broader options for loading terminals from which to meet an approved FOB Straits bid.

“As a result, all market participants will benefit from a more efficient market with more transparent price discovery,” it said.

Platts is a global energy, petrochemicals and metals information provider with a premier source of benchmark price reference.

It would only publish bids and offers and, transactions as FOB Straits and no longer publish FOB Singapore or FOB Malaysia bids, offers or transactions in its market-on-close assessment process.

MPRC said at the moment, the government is working closely with enforcement agencies to look at current industry policies and regulations.

“This is to improve the efficiency of doing business thus reducing cost for traders both from Malaysia and Singapore,” it said.

Johor Petroleum Development Corporation (JPDC) Chief Executive Officer Yazid Jaafar viewed the move as essential to the country.

“We appreciate the fact that our terminals and facilities are recognised internationally and are now in the benchmarking process of the price assessments process for oil products,” he said.

JPDC is the master planner and coordinator of Pengerang Integrated Petroleum Complex. — Bernama