Lotte Chemical Titan signed three-year naphtha supply agreement with Aramco Trading Singapore
In a Bursa Malaysia filing on 23 May 2025, Lotte Chemical Titan Holding Bhd (LCTH) announced that the contract will be effective from July 2025 through to June 2028.
Lotte Chemical Titan (M) Sdn Bhd (LCTM), a wholly owned subsidiary of Lotte Chemical, has entered into a three-year naphtha procurement agreement with Aramco Trading Singapore Pte Ltd, reinforcing its long-standing feedstock partnership with the Saudi energy major.
In a Bursa Malaysia filing on 23 May 2025, Lotte Chemical Titan Holding Bhd (LCTH) announced that the contract will be effective from July 2025 through to June 2028. Under the terms of the agreement, Aramco Trading Singapore will supply between 300,000 and 400,000 tons of naphtha annually, with pricing indexed to prevailing market benchmarks.
Aramco has been a key strategic supplier to LCTM, which operates two naphtha crackers at its integrated petrochemical complex in Pasir Gudang, Johor. These facilities have a combined ethylene production capacity exceeding 950,000 tons per annum.
Despite the renewed feedstock supply commitment, uncertainties persist regarding short-term utilisation. LCTM’s No. 1 cracker—rated at 430,000 tons per year—has been offline since late 2024 due to sustained negative production margins. To date, the company has not disclosed a timeline for the unit’s restart. Market participants are closely monitoring the company’s operational status in light of the renewed naphtha supply commitment.