Lotte Chemical Titan Signs Three-Year Naphtha Supply Agreement with Saudi Aramco Singapore Trading

Lotte Chemical’s wholly-owned subsidiary, Lotte Chemical Titan (Malaysia), has signed a three-year naphtha purchase agreement with Saudi Aramco Trading Singapore Pte Ltd, strengthening its long-term feedstock partnership with the Saudi energy giant.

Lotte Chemical Titan filed a document with Bursa Malaysia on May 23, 2025, announcing that the contract will be valid from July 2025 to June 2028. Under the terms of the agreement, Saudi Aramco Singapore Trading will supply 300,000 to 400,000 tonnes of naphtha per year, with prices linked to prevailing market benchmarks.

Saudi Aramco has been an important strategic supplier to Lotte Chemical Titan (Malaysia),

Lotte Chemical Titan (Malaysia) operates two naphtha crackers at its integrated petrochemical complex in Pasir Gudang, Johor. The two units have a total ethylene capacity of more than 950,000 tonnes per year.

Despite the new feedstock supply commitment, there is still uncertainty about short-term utilization.

Lotte Chemical Titan (Malaysia)'s 430,000 tonnes per annum (430,000 tonnes per annum) cracker unit has been shut down since the end of 2024 due to continued negative production margins. To date, the company has not announced a restart schedule for the unit. Market participants are closely watching the company's operations in light of new naphtha supply commitments.