SCO for Promgas FOB — EN590, JetA1, D6, LPG, LNG

Search

SCO for Promgas FOB — EN590, JetA1, D6, LPG, LNG

The FOB Procedures listed on the bottom half of this page can be used for any of the products listed at the top half of the page.
All products on this page are

  • Origin: Non-Sanctioned, Non-Russian Azerbaijan, Kazakhstan
  • Port – Incoterm: FOB-Rotterdam / Houston / Fujairah / Jurong / Ningbo-Zhoushan
  • Inspection: SGS or equivalent
  • Payment: MT-103/TT within 24 hours after a successful Dip Test
  • https://en.wikipedia.org/wiki/Gazprom_Promgaz

We inform you that we are ready, willing, and able to sell the following product/s:

Product EN590

Trial Lift Ready to Sell (included in the contract) 10,000 to 200,000 Metric Tons
Quantity Annual Contract 300,000 Metric Tons per month with R&E
FOB Price US $430 / $440 MT
50% Buyer side, 50% Seller side is closed

Product JetA1

Trial Lift Ready to Sell (included in the contract) 500,000 to 1,000,000 barrels
Quantity Annual Contract Up to 2,000,000 barrels per month with R&E
FOB Price US $67 / $69 Barrel
50% Buyer side, 50% Seller side is closed

Product D6

Trial Lift Ready to Sell (included in the contract) 50,000,000 to 300,000,000 Gallons
Quantity Annual Contract Up to 300,000,000 Gallons per month with R&E
FOB Price US $0.90 / $0.95 per Gallon
50% Buyer side, 50% Seller side is closed

Product LPG

Trial Lift Ready to Sell (included in the contract) 50,000,000 to 300,000,000 MT
Quantity Annual Contract Up to 300,000,000 MT per month with R&E
FOB Price US $380 / $390 per MT
50% Buyer side, 50% Seller side is closed

Product LNG

Trial Lift Ready to Sell (included in the contract) 50,000,000 to 300,000,000 MT
Quantity Annual Contract Up to 300,000,000 MT per month with R&E
FOB Price US $380 / $390 per MT
50% Buyer side, 50% Seller side is closed

FOB PROCEDURE 1: TANK TO TANK (with TTIA)

  1. Buyer issues an official ICPO with the seller’s procedure, passport copy, banking details along with their Tank Storage Agreement
  2. Seller issues their Commercial Invoice “CI” to the buyer, Buyer signs and returns the commercial invoice to the seller along with an Acceptance Letter of the sales and purchase procedure.
  3. Seller verifies the buyer’s TSA with the Port Authority to confirm that the buyer/storage lessee along with the storage facility TSA meets the required transaction standards. (NB: Seller will issue a Tank- to-Tank Injection Agreement (TTIA) to be signed by all parties only if Buyer’s TSA is engaged, not active or cannot be verified with the local port authority)
  4. Seller issues all POP documents below to the buyer upon a successful verification and approval of the buyer TSA or after receiving the TTIA fully signed by all parties:
    • Injection Report
    • Product Passport
    • 24 Hours SGS Report
    • Product Certificate of Origin
    • Tank Storage Receipt (TSR)
    • Authorization to sell and collect
    • Unconditional Dip-Test Authorization
    • Product Title Holder Transfer Agreement
    • NCNDA/IMFPA
  5. If required, buyer may inspect by SGS (Dip Test In Tanks) at buyer’s expense
  6. Upon successful verification of POP or Dip Test in the seller’s tank, buyer provides Tank Storage Receipt (TSR) to seller in order to issue the scheduled Injection Programming (IP) to be signed by buyer storage facility and then injects the product into buyer’s tanks
  7. Buyer makes the payment for the product via MT103, seller transfers the Title Holder & Ownership of the product to the Buyer
  8. After successful Trial Lift (First Lift), Seller issues SPA/Contract for 12 months with R&E to Buyer for processing
  9. Seller pays commissions to all intermediaries involved, for the initial lift and all subsequent lifts according to the signed NCNDA/IMFPA

FOB PROCEDURE 2: TANK TO TANK (with 3/2)

  1. Buyer accepts the seller’s procedure and submits an official ICPO. passport copy, banking details, and their Tank Storage Agreement
  2. The Seller issues a Commercial Invoice (CI) & Buyer countersigns Cl and returns to the Seller who verifies the TSA with the Port Authority.
  3. Buyer introduces their tank farm to the Seller via email, buyer tank farm issues two separate invoices for storage tank reservation. Seller commits fully by jointly paying the storage tank lease with the buyer directly to the Buyer’s approved tank farm. The Buyer reserves 3 days of storage, while the Seller reserves 2 days of storage
  4. Once the buyer tank farm issues the TSR as required, the Seller will issue their Product Injection Agreement (PIA) to be signed by all parties and upon the Seller receiving the PIA fully signed by all parties, the seller then issues to the Buyer the complete set of POP documents:
    • SGS Analysis Report (within 48 hours)
    • Product Passport
    • Product Certificate of Origin
    • Unconditional Dip Test Authorization
    • Injection Report
    • Tank Storage Receipt with GPS Coordinates
    • Authority to Sell & Collect (ATSC)
    • Authority To Verify (ATV)
    • NCNDA/IMFPA
  5. Optionally, the Buyer may conduct its own Dip Test in the Seller’s tank at the Buyer’s expense
  6. After a successful SGS Q&Q analysis report, seller issues the Injection Programming for approval and then product is injected into the Buyer’s tank as scheduled
  7. Upon successful product injection, the Buyer conducts the product payment via MT103 TT Wire Transfer per the final product value injected into the tanks. Note: the 2 day storage tank reservation paid by the seller will be included in the final invoice
  8. Upon payment confirmation, the Seller transfers the product ownership title
  9. The Seller settles the fees of all involved intermediaries through NCNDA/IMFPA Thereafter, the monthly contract shipment proceeds according to the terms and conditions in the Sales and Purchase Agreement (SPA) contract between both parties

FOB PROCEDURE 3: TANK TO TANK (with PTA)

  1. Buyer issues an official ICPO containing the seller’s procedure, a copy of their passport, banking information and their Tank Storage Agreement (TSA)
  2. Seller issues a Commercial Invoice CI to the buyer. The buyer signs and returns the commercial invoice to the seller along with an acceptance letter of the sales and purchase procedure.
  3. The Seller receives the countersigned commercial invoice and issues the NCNDA/lMFPA to be signed by all parties engaged with in the commission structures and issues the Buyer’s allotted Product Transfer Agreement (PTA) for endorsement by all parties after verifying and approving the Buyer’s Tank Storage Agreement (TSA) with the port authorities. The seller provides the buyer with all product documents (POP below after obtaining the fully endorsed PTA:
    • Injection Report
    • Product Passport_
    • 24 Hours SGS Report.
    • Tank Storage Receipt (TSR).
    • Product Certificate of Origin.
    • Unconditional Dip-Test Authorization
  4. The buyer’s SGS team may choose to conduct a reinspection of the product in the seller’s shore tanks.
  5. Upon successful verification of the POP or Dip-Test in the seller’s tank, buyer provides their Tank Storage Receipt TSR to seller in order to begin Injection of the product into the buyer storage facility tanks.
  6. Seller transfers the Title Holder & Ownership of the product to the Buyer upon a successful product injection into the Buyer’s Tank Farm and after the Buyer as made the total payment for the product via MT103.
  7. Seller provides Buyer with a Sales and Purchase Contract (SPA) for a period of 12 months with R&E for processing following a successful Trial Lift
  8. Seller receives and countersigns the NCNDA/IMFPA. The seller pays commissions to each and every intermediary for the first lift as well as any additional lifts

FOB PROCEDURE 4: TANK TO TANK (with PIA)

  1. Buyer accepts seller’s procedure and submits an official ICPO, passport copy, banking details, and their Tank Storage Agreement “TSA”.
  2. The seller issues a Commercial Invoice (CI) & Buyer countersigns CI and returns to the seller. Seller verifies the TSA with the port authority for approval.
  3. Buyer introduces their tank farm to the seller via email, and the buyer’s tank farm issues two separate invoices for storage tank reservation. Seller commits fully by jointly paying the storage tank lease with the buyer directly to the Buyer’s approved tank farm. The Buyer reserves 3 days of storage, while the seller reserves 2 days of storage.
  4. Once the buyer’s tank farm issues the required TSR, the seller issues their Product Injection Agreement (PIA) to be signed by all parties. Upon receiving the fully signed PIA, the seller issues the complete set of POP documents below:
    • SGS Analysis Report ( within 48 hours )
    • Product Passport
    • Product Certificate of Origin
    • Unconditional Dip Test Authorization
    • Injection Report
    • Tank Storage Receipt with GPS Coordinates
    • Authority to Sell & Collect ( ATSC )
    • Authority to Verify ( ATV )
    • NCNDA/IMFPA
  5. Optionally, the Buyer may conduct its own Dip-Test in the seller’s tank at the Buyer’s expense,
  6. After a successful SGS Q&Q analysis report, seller issues the Injection Programming for approval and then product is injected into the Buyer’s tank as scheduled.
  7. Upon successful product injection, the Buyer makes the payment via MT103 TT Wire Transfer based on the final value of the product injected into the tanks. Note: The 2 day storage tank reservation paid by the seller will be included in the final invoice.
  8. Upon payment confirmation, the Seller transfers the product ownership title.
  9. The Seller pays the fees of all involved intermediaries through the NCNDA/IMFPA. Thereafter, the monthly contract shipment proceeds according to the terms and conditions in the Sales and Purchase Agreement (SPA) contract between both parties.

FOB PROCEDURE 5: TANK TO VESSEL (with TVIA)

  1. The Buyer issues an ICPO with banking details buyer’s passport and Charter Party Agreement (CPA).
  2. The Seller issues Commercial lnvoice for the product, Buyer countersigns and returns it to the seller.
  3. Seller receives the countersigned CI. Buyer requests a 1-day invoice for tank storage extension and dip test in the seller’s tanks.
  4. Upon receipt and confirmation of the buyer’s payment, the seller issues the PPOP documents below:
    • Authorization to Sell and Collect.
    • Product Passport/Analysis.
    • Product Certificate of Origin
  5. Buyer signs and returns the Authorization to Sell and Collect Document to the seller. Seller opens communication with the Tank Farm Management for product transfer registration. Upon completion of product transfer registration with the port authority by the tank farm, the seller issues the POP documents below:
    • Tank Storage Receipt (TSR).
    • Injection Report.
    • 24 Hours SGS Report.
    • Unconditional Dip-Test Authorization.
  6. (Optional) Buyer proceeds with its SGS team to re-conduct the inspection of the product in Seller’s shore tanks.
  7. Upon buyer’s successful verification of POP and Product Dip-Test in the seller’s tank, the Seller issues the Tank to Vessel Injection Agreement (TVIA) and Tanker Injection Programming (TIP).
  8. Product injection begins into the buyer vessel. Buyer may completely take over seller tanks for further product storage.
  9. After product Transfer & Injection into the Buyer’s vessel has been completed, the buyer makes the payment for the total product via MT103, seller transfers the Title Holder & Ownership of the product to the Buyer.
  10. After successful Trial Lift (First Lift), Seller issues PA/Contract for 12 months with R&E to Buyer for processing.
  11. Seller issues NCNDA/IMFPA to be signed by all intermediaries involved in the transaction. Seller pays commissions to all intermediaries involved for the initial lift and all subsequent lifts.

TERMS AND CONDITIONS

  • Fuel Origin: Azerbaijan, Kazakhstan
  • Delivery Ports: Houston, Rotterdam, Fujairah, Jurong, And Ningbo-Zhoushan
  • Incoterms: FOB
  • Payment: MT103 / TT
  • Commission: 50%/50% Paid to Buyer and Seller Side, Seller Side is Closed
  • Max. Trial Lifts: 2,000,000 Barrels; 200,000 Metric Tons; 2,000,000,000 Gallons
  • Contracts: Inquire About Larger Monthly Contract Amounts
  • Prices: Subject To Change Without Notice
  • Procedures: Seller Procedures Only, Non-Negotiable
  • Inspection: SGS OR Equivalent
  • Fuel Availability: Fuels on this SCO are always available. Your CI Is the Guarantee of an Allocation

NOTE ON THE USE OF FIDUCIARY RECEIVERS

Sanction policies, along with their effects on International Banking practices, have dramatically affected the availability of funds when using foreign wire transfers. To facilitate timely transactions, our sellers will use regionally based fiduciary receivers rather than have funds sent directly to the refineries.

UNDERSTANDING FUEL PRODUCER PROCEDURES DOCUMENT

ICPO SUBMISSION POLICY AS OF 1/1/2025

Before processing a new order with our sellers, the buyer and buyer mandate (if applicable) must sign the Understanding Fuel Producer Procedures Document accompanying the Soft Corporate Offer (SCO). They must also provide Proof of Funds (POF) sufficient to cover storage or tank extension requirements for the chosen procedure.

Potential Buyers need to understand what these Sellers are looking for from a Buyer BEFORE engaging in any transaction. This will ensure a successful lift and minimize the possibility of failure.

  1. Pricing is “refinery direct” and is not connected to Platts, which is based upon “traders”‘ prices.
  2. These refineries have been in business for years (one since 1949) and have delivered fuels of all types for decades, successfully.
  3. Manufacturers have a massive investment in their fuels through refining, transporting, and storing them at the major ports around the world, so they expect Buyers to make a similar investment prior to transferring fuel to them.
  4. Thus, manufacturers do NOT PROVIDE PROOF OF PRODUCT (POP) FOR FREE. Buyers must demonstrate an INVESTMENT in the ability to RECEIVE fuel prior to receiving POP in a transaction, REGARDLESS OF PROCEDURE.
  5. These investments are generally paid to 3rd party logistics providers and NOT to the manufacturers themselves, unless the procedure calls for a Tank Extension. Manufacturers generally take no fees and only make money by SELLING FUEL.
  6. This policy favors Buyers with currently rented tanks, which is a de facto demonstration of an investment in the ability to receive fuel once POP is approved.
  7. Manufacturers’ Procedures CANNOT be changed in any way. DO NOT ATTEMPT to negotiate the Procedure once a transaction starts. This will ONLY lead to cancellation.
  8. If you EXPECT problems during a transaction, you will certainly find one. This will terminate an otherwise good transaction. Complete your due diligence in advance.

Procedures are like train tracks. If you stay on the rails, you get to your destination. If you go OFF them, you become a Train Wreck. Don’t be a Train Wreck!

Finally: An ICPO is an ORDER. It is NOT an opportunity to NEGOTIATE the Procedure. Do not substitute Logistics Companies in the middle of a transaction, this is a RED FLAG. It is assumed that you have completed your due diligence to ensure you are ready for the transaction. Ensure you understand what is required to receive your POP at the appropriate time, as indicated by the procedures.

Posted in