PTT Joins ADNOC and World’s Leading Oil Companies to Launch ICE Futures Abu Dhabi (IFAD)
The official opening ceremony of IFAD is scheduled on 29 March 2021, joined by Mr. Auttapol Rerkpiboon, President & Chief Executive Officer of PTT Public Co., Ltd. (PTT) and other co-founders.
PTT is proud to partner with Abu Dhabi National Oil Company (ADNOC) – the producer of Murban crude – and eight of the world’s largest energy companies and the Intercontinental Exchange (ICE) ), a leading operator of global exchanges and clearing houses, to launch ICE Futures Abu Dhabi (IFAD).
With this regard, Mr. Disathat Panyarachun, Senior Executive Vice President, International Trading Business Unit (TBU) revealed that by foreseeing the benefits of being a Co-Founder, not just a player in the market, TBU decided to establish PTT MEA Ltd. (PTT MEA) in Abu Dhabi, United Arab Emirates, which is 100% owned by PTT International Trading Pte. Ltd. (PTTT). The company, registered on 21 February 2021, will be a shareholder of IFAD and represent PTT Group trading hub in Middle East. By connecting Asia, Europe and Africa, insightful market information will be delivered to PTT networks while trading flows can be expanded.
IFAD will be home to the world’s first Murban Crude Futures Contract, where Murabn crude is desired by more than 60 refineries in Asia, offering transparent and market driven pricing for the first time. By establishing a secondary market and offering inter-commodity spreads, not only a differential to other global crude benchmarks such as ICE BRENT and WTI, but also a differential between Murban crude and Petroleum products, participants will have more options to manage risk and clear trades.
ICE Murban Futures traded at IFAD will be cleared at ICE Clear Europe, a leading energy clearing house, and will clear alongside global oil benchmarks – ICE Brent which has daily tradable volume around 1 Billion Barrels per Day.
As PTT Group refineries import crude oil from the United Arab Emirates approximately 20% of the refining capacity; therefore, participation in the IFAD will help provide security of supply for the nation as well as enhance PTT Group efficiency to manage risks and strengthen its competitiveness in the international markets.