REFINERY DIRECT TO VTTI AND VOPAK

Refining and delivering petroleum products directly to major storage terminals like VTTI and Vopak offers a streamlined, efficient approach for buyers and sellers in the energy market. This process ensures product availability at key ports worldwide, with clear pricing and a straightforward transaction procedure. Understanding how this works can help buyers navigate the complexities of fuel procurement, especially for products like Jet A1, EN590 diesel, and D6 fuel oil.

Storage tanks at VTTI terminal, showing large capacity tanks for refined petroleum products

Product Availability and Pricing

The refinery direct supply to VTTI and Vopak terminals covers all major ports, making it accessible for buyers globally. The key products available include:

• Jet A1

- Gross price: $110 per barrel

- Net price: $106 per barrel

- Buy-side : $2

• EN590 Diesel

- Gross price: $700 per metric ton

- Net price: $690 per metric ton

- Buy-side : $5

• D6 Fuel Oil

- Gross price: $1.10 per gallon

- Net price: $1.06 per gallon

- Buy-side : $0.02

1) NBG- REFINERY TO VOPAK VTTI 2026.pdf

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Step-by-Step FOB Procedure for Tank-to-Tank Delivery

The delivery process follows a clear FOB (Free On Board) procedure designed to protect both buyer and seller interests. The process includes the following steps: NO TSA REQUIRED

1. Buyer Issues ICPO

   The buyer sends an Irrevocable Corporate Purchase Order (ICPO) along with a copy of their international passport data page, company profile, and Tank Storage Agreement (TSA) for approval.

   
   

2. Seller Issues Commercial Invoice

   The seller provides a commercial invoice (CI) for the available quantity in their storage tank. The buyer reviews, signs, and returns the CI to confirm the order.

   
   

   • Commitment to supply

   • Authorization to verify (ATV) via phone or email

   • Tank Storage Receipt (TSR)

   • Tank-to-Tank Injection Agreement (TTIA) signed by the seller, buyer, and buyer’s tank farm

3. Seller Provides Proof of Product (POP)

   The seller sends the following documents to the buyer for evaluation:

   
   

4. Buyer Verification and Tank Farm Coordination

   The buyer’s tank farm sends back the TSR with hub and tag information if not already included in the TTIA.

   
   

5. Dip Test and SGS Inspection

   After verifying POP and presenting the endorsed TTIA/TSR, the seller issues an Unconditional Discharge Tank Agreement (UDTA) for all parties to sign. This allows the buyer to conduct a dip test at the seller’s reservoir or tanks at their own expense. The buyer arranges for a fresh SGS inspection report, which must be no older than 48 hours.

   
   

6. Injection and Payment

   The buyer arranges the injection of the product into their tanks. Within 24 hours after the injection is complete, the seller issues an injection report. The buyer then makes a 100% wire transfer payment via MT103 to the seller’s nominated account.

   
   

This process ensures transparency and security for both parties, minimizing risks related to product quality and delivery.

Fuel injection system linking seller and buyer tanks during tank-to-tank transfer

Importance of LOI and CIS for End Buyers

A Letter of Intent (LOI) and Corporate Identification Sheet (CIS) are mandatory for the end buyer. These documents establish the buyer’s seriousness and legitimacy in the transaction. The LOI outlines the buyer’s intent to purchase, while the CIS provides essential company details for verification.

This requirement helps sellers avoid fraudulent transactions and ensures that buyers meet compliance standards. It also facilitates smoother communication and faster approval during the transaction process.

Advantages of Refinery Direct Supply to VTTI and Vopak

Choosing refinery direct supply to terminals like VTTI and Vopak offers several benefits:

• Access to Major Ports

Buyers can receive products at key global ports, reducing transportation time and costs.

• Transparent Pricing

Clear gross and net prices with defined buy-side fees help buyers plan budgets accurately.

• Secure Transaction Process

The FOB procedure with required documentation and dip tests protects both parties.

• Flexible Quantities

Buyers can purchase available quantities directly from seller storage tanks, allowing for tailored orders.

• Reliable Product Quality

SGS inspections and tank-to-tank injection agreements guarantee product integrity.

These advantages make refinery direct supply an attractive option for companies seeking dependable fuel sourcing.

SGS inspection and dip test equipment used to verify fuel quality before transfer

Practical Tips for Buyers

To ensure a smooth transaction when purchasing refinery direct to VTTI or Vopak, buyers should:

• Prepare all required documents (ICPO, passport copy, company profile, TSA) in advance.

• Review commercial invoices carefully before signing.

• Coordinate closely with their tank farm to provide accurate TSR and hub information.

• Budget for dip test and SGS inspection costs.

• Confirm payment details and ensure timely wire transfers via MT103.

• Maintain clear communication with the seller throughout the process.

  
  

Following these steps reduces delays and builds trust between buyer and seller.