JET A1 EN590 D6 FOB Tank to Tank Supply Terms and Procedures
- Jose Pagan
- 2 hours ago
- 7 min read
A fuel supply offer can look simple on one page: product, price, volume, port, payment, and inspection. The real work starts when the buyer, seller, tank farm, and inspector must line up the documents in the right order.
For FOB tank-to-tank transactions, timing matters. Storage must be ready. Product allocation must be verified. Dip testing must happen before payment. Title must transfer only after the agreed quality and quantity checks are complete.
The terms below summarize a direct refinery-style procedure for JET A-1, EN590 10PPM, and D6 Virgin Oil supply on an FOB tank-to-tank basis through approved Tier 1 tank farms at major ports, including Rotterdam, Houston, Jurong, and Fujairah.
This content is informational only. Buyers, sellers, brokers, and mandates should verify every commercial term, legal document, tank agreement, and inspection step with qualified counsel and trusted trade professionals before moving funds or signing binding documents.
Product offer summary
The stated supply covers three petroleum products, each with its own pricing unit, lift size, maximum quantity, and buy-side commission. The offer names Kazakhstan as the origin for the listed fuels and states FOB Incoterms.
Product | Price indication | Trial lift | Minimum quantity | Maximum quantity | Buy-side commission |
JET A-1 | $110/$106 per BBL | 1,000,000 BBL | 1,000,000 BBL | 5,000,000 BBL | $2 per BBL |
EN590 10PPM | $600/$580 per MT | 100,000 MT | 100,000 MT | 500,000 MT | $10 per MT |
D6 Virgin Oil | $1.10/$1.08 per GAL | 200,000,000 GAL | 400,000,000 GAL | 800,000,000 GAL | $0.01 per GAL |
The stated price format appears as a two-number quote for each product. In fuel trading, that often refers to gross and net pricing, but the buyer should confirm the meaning in writing before issuing an ICPO or signing a commercial invoice.
The D6 figures also need special attention. The trial lift is listed as 200,000,000 gallons, while the minimum quantity is listed as 400,000,000 gallons. That may be intentional, or it may need clarification before the file moves forward.
Key commercial terms include:
Origin
Kazakhstan, subject to verification through the certificate of origin and supporting refinery or allocation documents.
Incoterms
FOB, with the buyer responsible for the product after the agreed transfer point and title transfer conditions are met.
Payment
T/T wire transfer and MT103 after inspection and successful Q&Q verification in the buyer’s tank, according to the stated procedure.
Inspection
SGS inspection is named for quality and quantity confirmation.
Tank location
Vopak, Kinder Morgan, VTTI, or other Tier 1 tank farms at approved ports.
Ports and tank farm requirements
The offer names Rotterdam, Houston, Jurong, and Fujairah as delivery port options. These are major petroleum trading and storage hubs, which makes them common choices for FOB tank-to-tank transactions.
The stated tank-to-tank procedure requires injection into the buyer’s storage at a recognized tank farm. It refers to Vopak, Kinder Morgan, VTTI, and Tier 1 tank farms, with no joint ventures accepted under the stated terms.
That requirement matters because the seller is not offering a casual nomination process. The buyer must show a valid Tank Storage Agreement, often called a TSA, before the seller proceeds with the commercial invoice and allocation stage.
A serious buyer should confirm that the TSA covers:
The correct product type
The correct port and terminal
Enough storage capacity for the lift quantity
The correct storage dates
Injection compatibility with the seller’s tank or terminal
A tank farm manager or contract authority able to confirm the agreement
No third-party arrangement that conflicts with the seller’s “no JV” condition
Buyer documents needed at the start
The procedure begins when the buyer issues a package of documents. These documents are used to show buying intent, storage readiness, and identity.
The required buyer package includes:
ICPO
The Irrevocable Corporate Purchase Order sets out the buyer’s intent to purchase the stated product, quantity, price, port, and terms.
Tank Storage Agreement
The TSA shows that the buyer has storage capacity ready at an approved Tier 1 tank farm.
Buyer passport
Identification is required for compliance and contract verification. Buyers should handle personal documents with care and only send them through secure, verified channels.
The instruction also states that the Authority to Verify, or ATV, must come through the tank manager or contract authority at a Tier 1 tank farm. Joint venture storage structures are not accepted under the stated procedure.
Before sending documents, the buyer should check that all company names match across the ICPO, TSA, passport, and later commercial invoice. Small mismatches can delay the file or cause rejection.
How the commercial invoice and NDA stage works
After the buyer issues the opening documents, the seller issues a Commercial Invoice. The buyer signs it and returns it to the seller for countersigning.
At this stage, the seller also sends a Non-Disclosure Agreement. The NDA must be signed and sealed by the buyer and the tank farm. This step limits the sharing of sensitive commercial and terminal information.
A buyer should review the Commercial Invoice carefully before signing. It should match the agreed terms, including:
Invoice item | What to verify |
Product | JET A-1, EN590 10PPM, or D6 Virgin Oil as agreed |
Quantity | Trial lift, minimum, or spot lift amount |
Price | Correct unit and gross or net meaning |
Port | Rotterdam, Houston, Jurong, Fujairah, or other approved port |
Incoterm | FOB |
Inspection | SGS or agreed equivalent if allowed |
Payment | T/T wire transfer and MT103 after successful Q&Q |
Commission | Buy-side commission exactly as agreed |
Parties | Legal names of buyer, seller, and any intermediaries |
The procedure states that it is direct from the refinery and does not allow changes. That means the buyer should not sign unless the documents match the intended transaction.
Product allocation and injection documentation
Once the seller verifies the buyer’s storage and commercial documents, the seller presents the product injection arrangement. The seller’s tank farm verifies the setup and coordinates with the buyer’s tank farm to secure storage space.
The next step is the Injection Programming Agreement, often called the IPA. The buyer and the buyer’s tank farm sign this document. It sets the planned injection schedule and confirms the tank farm’s role in receiving product.
After that, the seller transfers the product allocation documents to the buyer. These are central to the tank-to-tank process.
The allocation package includes:
Product Passport
Used to identify the product and support quality tracing.
Certificate of Origin
Confirms the stated origin of the product.
Authorization to Sell or Collect
Often shown as ATSC, this document supports the seller’s authority over the allocated product.
Unconditional Dip Test Authorization
The UTDA gives the buyer the right to conduct a dip test under the agreed procedure.
Injection schedule and Notice of Readiness
The NOR confirms readiness to begin injection according to the agreed spot lift quantity.
These documents should be reviewed together, not one by one in isolation. The product, tank location, quantity, dates, and parties must align across the full file.
The tank-to-tank injection procedure
The procedure is built around inspection before payment. The buyer does not pay for product based only on documents. Payment follows successful quantity and quality confirmation in the buyer’s own tank.
A clean sequence looks like this.
Buyer issues the opening package
The buyer sends the ICPO, valid TSA, and required identity document. The TSA must come from an approved Tier 1 tank farm and must be verifiable through the proper tank farm authority.
Seller issues the Commercial Invoice
The seller sends the Commercial Invoice. The buyer signs and returns it. The seller countersigns. The NDA is also signed and sealed by the buyer and tank farm.
Seller confirms the injection setup
The seller presents the product injection position through the seller’s tank farm. After verification, the tank farms coordinate storage and injection readiness.
Seller issues the Injection Programming Agreement
The IPA is issued for signature by the buyer and the buyer’s tank farm. This aligns the parties on timing, storage, and the mechanics of injection.
Seller releases allocation documents
The buyer receives the Product Passport, Certificate of Origin, ATSC, UTDA, injection schedule, and NOR. These documents support the buyer’s right to inspect and receive the product.
Buyer conducts the dip test
The buyer conducts the dip test on the product. The seller then commences injection according to the agreed schedule.
After injection starts, the seller releases:
Injection Report
Recent SGS Quality Survey
Buyer performs SGS inspection in its own tanks
The buyer arranges inspection with an SGS agent in the buyer’s own tanks. This is the main protection point in the transaction because it confirms both quality and quantity before payment.
Buyer pays after successful Q&Q
Once the buyer’s Q&Q dip test is successful, the buyer pays the total value of the injected product by T/T wire transfer or MT103.
Seller transfers title and pays intermediaries
After payment, the seller releases the product title, ownership title, and ownership documents to the buyer. Intermediaries are paid according to the signed NCNDA/IMFPA.
Why the inspection and payment order matters
FOB fuel transactions carry real risk if the inspection, title, and payment sequence is unclear. The stated procedure reduces that risk by putting inspection before payment and title release after payment.
That structure gives each side a defined position:
Party | Main protection |
Buyer | Dip test, SGS inspection, product verification in buyer’s tank before payment |
Seller | Signed Commercial Invoice, verified TSA, controlled injection, payment before title release |
Tank farm | Signed TSA, NDA, IPA, and defined injection schedule |
Intermediaries | NCNDA/IMFPA tied to commission payment after completion |
The buyer should still check the legal force of each document. Terms such as ATSC, UTDA, IPA, NOR, and NCNDA/IMFPA are common in fuel-trade paperwork, but quality varies across files. Documents must be real, verifiable, and consistent.
Due diligence before moving forward
The stated moving-forward requirement is LOI or TSA addressed to the designated brokerage representative. Before sending either, a buyer should run a disciplined review.
A practical review should include:
Confirm the seller’s authority to sell the product.
Verify the tank farm directly through known contact channels, not only through documents provided in the file.
Check that the TSA is active, paid, and suitable for the product.
Confirm whether the price quote is gross, net, or another structure.
Clarify the D6 trial lift and minimum quantity mismatch.
Confirm whether SGS inspection is mandatory and who pays for it.
Review the payment trigger in the Commercial Invoice.
Confirm that title transfer happens only after payment and proper product verification.
Make sure all intermediaries are listed in the NCNDA/IMFPA before the transaction begins.
No buyer should rely only on screenshots, unsigned documents, or unverifiable tank claims. Physical fuel supply must be confirmed through documentary, terminal, inspection, and legal channels.
Final takeaway
The JET A-1, EN590 10PPM, and D6 Virgin Oil FOB tank-to-tank offer follows a strict document-led process. The buyer begins with an ICPO, TSA, and identity document. The seller responds with a Commercial Invoice and NDA. The tank farms coordinate injection. The buyer receives allocation documents, performs dip testing and SGS inspection, then pays by T/T or MT103 after successful Q&Q in the buyer’s tanks.
The strongest version of this transaction is simple: verified storage, matching documents, inspection before payment, and clean title transfer after payment. If any term, document, quantity, or authority cannot be confirmed, resolve it before issuing the LOI, signing the invoice, or moving funds.