Fuel Offer: 70,000 MT x 12 (approx. 21 million gallons) ULSD (10PPM) 12-month Production Contract
Manufacturer:
Delivery: 5-7 days 1st lift, to Houston Port
Price: US South Gulf Coast PLATTS +$0.01
NOTE: This price includes $0.02 Buy-side commission to be paid by Buyer Bank
Initial Procedure for Major US Refinery Production Contracts
1/ (Potential) Buyer provides its company profile and Letter of Intent (LOI) on Company Letterhead and banking information (bank name)
2/ Seller issues soft corporate offer, indicating the price, possible terms of delivery, options for quantity commodity and terms of payment.
3/ Buyer provides to the Sellers 's bank (bank to bank) with confirmation of the buyer's solvency.
4/ Seller issues FCO and provides confirmation of the Seller's ability to supply requested commodity /POP
5/ Buyer issues ICPO
6/ Seller provides to Buyer with the draft contract, parties negotiate and sign it.
7/ Buyer submit Letter of Credit to Seller.
8/ Seller will delivery as per refinery delivery schedule and will arrange in accordance with Buyer's logistics
9/ Buyer perform Q&Q and pays via Letter of Credit or Bank wire transfer MT103
10/ Contract continues for the agreed monthly quantity...
NOTE: US Seller Refineries typically will allow dip test in their tanks and provide a 10-day line of credit after Buyer SBLC