Exploring the Impact of SCO from Turkmenistan's Refinery on Global Energy Markets

The global energy market demands reliable sources of high-quality fuel commodities. Turkmenistan’s refinery products, including jet fuel, virgin fuel oil, crude oil, liquefied natural gas, and liquefied petroleum gas, offer competitive options for buyers worldwide. This post explores the supply chain options, pricing structures, and key details about the SCO (Sale and Purchase Contract) from Turkmenistan refineries, focusing on the available commodities, delivery terms, and quantities.

Delivery Terms and Incoterms Explained

Understanding delivery terms is essential when dealing with large-scale fuel transactions. Turkmenistan refinery offers several delivery options tailored to different buyer needs:

• FOB (Tank to Tank): Available for new and existing buyers at key ports such as Houston, Rotterdam, Fujairah, Hamburg, and Jurong. This term means the seller delivers the commodity into the buyer’s tank at the port.

• FOB (Tank to Vessel) or (Vessel to Vessel): Reserved for existing buyers only. This involves loading the commodity directly onto the buyer’s vessel or transferring between vessels.

• Pipeline TakeOver (PTO) at Horgos: Available for both new and existing buyers. This option allows buyers to take over the commodity directly from the pipeline at Horgos, a strategic location on the China-Kazakhstan border.

• CIF (Vessel to Destination): Offered only to existing buyers. The seller covers cost, insurance, and freight to the buyer’s destination port.

• Cargo Title Take Over (TTO): Also for existing buyers, this option transfers ownership of the cargo at a specified point, often used for financial or logistical convenience.

  
  

These terms provide flexibility depending on buyer experience, volume requirements, and preferred logistics.

Commodities Available from Turkmenistan Refinery

Turkmenistan produces a range of fuel commodities with competitive pricing and large monthly volumes. Below is a breakdown of the main products:

Jet Fuel (Jet A1) and Virgin Fuel Oil D6

• Minimum quantity: 1,000,000 barrels monthly (100 million gallons monthly)

• Maximum quantity: 3,000,000 barrels monthly (200 million gallons monthly)

• FOB price: USD 65–69 per barrel; USD 0.78–0.80 per gallon

• CIF price: USD 69–73 per barrel; USD 0.80–0.82 per gallon

• TTO price: USD 69–73 per barrel; USD 0.80–0.82 per gallon

• Commission: USD 2 per barrel (seller and buyer side open); USD 0.01 per gallon (seller and buyer side open)

• Origin: Turkmenistan

  
  

Jet fuel and virgin fuel oil from Turkmenistan meet international standards and are suitable for aviation and industrial use. The large volume availability supports bulk buyers and long-term contracts.

EURO 4, EURO 5, EN590 Diesel and ESPO Crude Oil

• Minimum quantity: 100,000 metric tons monthly (diesel), 1,000,000 barrels monthly (crude oil)

• Maximum quantity: 500,000 metric tons monthly (diesel), 3,000,000 barrels monthly (crude oil)

• FOB price: USD 470–490 per metric ton (diesel), USD 48–52 per barrel (crude oil)

• CIF price: USD 490–510 per metric ton (diesel), USD 52–56 per barrel (crude oil)

• TTO price: Not available for diesel; USD 52–56 per barrel for crude oil

• PTO price: USD 450–470 per metric ton (diesel) at Horgos; USD 51–55 per barrel (crude oil) at Dushanzi, Xinjiang

• Commission: USD 10 per metric ton (diesel); USD 2 per barrel (crude oil)

• Origin: Turkmenistan

  
  

These products cater to European and Asian markets, with diesel meeting Euro 4 and Euro 5 standards, ensuring compliance with environmental regulations. ESPO crude oil is a popular blend suitable for refineries requiring medium sour crude.

Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG)

• Minimum quantity: 50,000 metric tons monthly

• Maximum quantity: 500,000 metric tons monthly

• FOB price: USD 370–380 per metric ton (LNG), USD 300–310 per metric ton (LPG)

• CIF price: USD 380–390 per metric ton (LNG), USD 310–320 per metric ton (LPG)

• PTO price: USD 300–310 per metric ton (LNG) at Horgos; LPG PTO not available

• Commission: USD 5 per metric ton (open for both buyer and seller)

• Origin: Turkmenistan

  
  

LNG and LPG from Turkmenistan provide clean energy alternatives with competitive pricing. The availability of pipeline takeover at Horgos supports buyers targeting the Chinese market.

Quantity and Pricing Flexibility

The Turkmenistan refinery offers flexible quantity ranges to accommodate different buyer needs:

• Jet fuel and virgin fuel oil: from 1 million to 3 million barrels monthly

• Diesel and crude oil: from 100,000 metric tons to 500,000 metric tons monthly (diesel), and 1 million to 3 million barrels monthly (crude oil)

• LNG and LPG: from 50,000 to 500,000 metric tons monthly

  
  

Pricing varies by delivery term and commodity, with FOB generally lower than CIF due to the buyer handling shipping and insurance. Commission fees are open on both buyer and seller sides, allowing negotiation.

Strategic Delivery Locations

The refinery’s delivery points cover major global hubs and strategic pipeline locations:

• Ports for FOB Tank to Tank: Houston, Rotterdam, Fujairah, Hamburg, Jurong

• Pipeline TakeOver: Horgos (Khorgos), a key gateway between Central Asia and China

• Pipeline TakeOver for crude oil: Dushanzi, Xinjiang

  
  

These locations enable efficient distribution to North America, Europe, the Middle East, and Asia. Pipeline options reduce shipping costs and transit times for buyers in Central Asia and China.

How Buyers Can Benefit

• New buyers can access FOB Tank to Tank and Pipeline TakeOver options, allowing entry into the market with flexible delivery.

• Existing buyers have access to a wider range of delivery terms, including FOB Tank to Vessel, Vessel to Vessel, CIF, and Cargo Title Take Over.

• Large monthly volumes support long-term contracts and stable supply chains.

• Competitive pricing with transparent commission structures encourages fair negotiations.

• Origin from Turkmenistan ensures access to Central Asian energy resources with growing export infrastructure.

  
  

Practical Considerations for Buyers

When engaging with Turkmenistan refinery SCO offers, buyers should:

• Assess their preferred delivery term based on logistics capabilities and experience.

• Consider volume requirements carefully to match refinery minimums and maximums.

• Negotiate commissions openly to optimize cost structures.

• Verify compliance with local import regulations and quality standards.

• Plan for pipeline takeover logistics if targeting Chinese or Central Asian markets.

  
  

Final Thoughts on SCO From Turkmenistan Refinery