US Refinery-USLD Production Contract

Fuel Offer:  70,000 MT x 12 (approx. 21 million gallons) ULSD (10PPM) 12-month Production Contract

 

 

Manufacturer:  

Delivery:            5-7 days 1^st 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