Saudis May Raise Feedstock Cost for Petrochemical Makers in 2013

Saudi Arabia may raise prices next year for ethane and methane gas used to produce petrochemicals, according to Al Rajhi Capital, the investment arm of the kingdom’s biggest bank by market value.

Clients such as Saudi Basic Industries Corp. (SABIC), the world’s largest petrochemical maker, may pay $1.25 per million British thermal units for the feedstocks starting in 2013, compared with the current price of 75 cents per million Btu, Al Rajhi Capital said in a report today.

The Saudi oil ministry decided to keep gas prices unchanged this year for petrochemical manufacturers at 75 cents per million Btu and has not indicated when it may adjust prices, Jeddah-based NCB Capital said in a report on January 30.

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