Streamlined Purchasing Process for EN590 from Refineries: A Quick Guide

Purchasing EN590 diesel fuel directly from refineries can seem complex, but understanding the clear steps involved can save time and reduce uncertainty. This guide breaks down the process, pricing, and documentation requirements to help buyers navigate the transaction efficiently. With access to over 30 refineries and a dedicated attorney representing them, buyers can expect a smooth experience from initial inquiry to product delivery within days.

Fuel storage tanks at refinery port

Understanding EN590 Pricing and Delivery Terms

EN590 is a standard diesel fuel widely used in Europe and other regions. Pricing depends on the delivery terms:

• FOB (Free On Board) pricing applies at major ports such as Rotterdam, Fujairah, Jurong (Singapore), and Houston.

- Price: USD 460 net / USD 470 gross per metric ton

• CIF (Cost, Insurance, and Freight) pricing includes delivery to the buyer’s destination port.

- Price: USD 500 net / USD 510 gross per metric ton

Buyers must choose between these options based on their logistics capabilities and preferences. FOB means the buyer arranges shipping from the refinery port, while CIF includes shipping and insurance handled by the seller.

Step-by-Step Purchasing Procedure

The refinery requires specific documentation upfront but does not demand banking information immediately. The entire process typically takes about three days from submission to product delivery.

Step 1: Submit LOI and KYC Documents

• The buyer submits a Letter of Intent (LOI) along with Know Your Customer (KYC) documentation.

• These documents are sent directly to the refinery’s attorney, who represents all 30 refineries on standby.

• This step ensures the buyer is vetted and qualified before proceeding.

  
  

Step 2: Receive Soft Corporate Offer (SCO)

• Once the buyer is vetted, the refinery issues an SCO on official letterhead.

• The SCO outlines product details, pricing, and terms for the buyer’s review.

• This document confirms the refinery’s commitment and readiness to supply.

  
  

Step 3: Choose Purchase Procedure and Issue ICPO

Buyers select one of the attached procedures, commonly the FOB Tank to Tank Procedure:

• Buyer issues an Irrevocable Corporate Purchase Order (ICPO) including the seller’s working procedures, banking details, and a scanned copy of the buyer’s passport.

• Buyer also submits a Tank Storage Receipt (TSR) if applicable.

  
  

Step 4: Seller Issues Commercial Invoice and PPOP

• Seller issues a Commercial Invoice for the product stored in tanks at the port.

• Buyer and buyer’s logistics team sign and return the invoice.

• Seller provides Proof of Product (PPOP) documents, including:

- GPS coordinates and Tank Storage Receipt (TSR)

- Injection report

- Unconditional Dip Test Authorization letter (DTA)

- Authorization to Sell and Collect (ATSC)

- Authorization to Verify (ATV)

- Fresh SGS report confirming product quality in seller’s tank

Step 5: Sign NCNDA/IMFPA Agreements

• Seller issues Non-Circumvention, Non-Disclosure Agreement (NCNDA) and International Master Fee Protection Agreement (IMFPA).

• These agreements protect all intermediaries and the buyer during the transaction.

  
  

Step 6: Buyer Inspection and Dip Test

• Buyer arranges an SGS inspection at their expense.

• Buyer sends the Tank Storage Receipt (TSR) after inspection.

• Upon successful dip test in tanks, the transaction moves forward.

  
  

Step 7: Product Delivery

• The buyer receives the product within 3 to 4 days after completing the above steps.

• The refinery guarantees timely delivery once all paperwork and inspections are complete.

  
  

SGS inspector testing fuel quality at storage tank

Why Work with a Single Attorney for Multiple Refineries?

One attorney represents all 30 refineries involved in this process. This arrangement offers several advantages:

• Consistency: Buyers deal with one legal representative, simplifying communication.

• Speed: The attorney is ready to process paperwork quickly once buyer documents are submitted.

• Trust: Having a single point of contact reduces the risk of fraud or miscommunication.

• Efficiency: The attorney coordinates between refineries and buyers to ensure smooth transactions.

  
  

This setup benefits buyers by reducing delays and providing a clear legal framework for the purchase.

Tips for Buyers to Ensure a Smooth Transaction

• Prepare your LOI and KYC documents carefully and submit them promptly.

• Review the SCO thoroughly before proceeding.

• Choose the purchase procedure that best fits your logistics and financial capabilities.

• Work with trusted intermediaries and ensure all agreements (NCNDA/IMFPA) are signed.

• Arrange for SGS inspection quickly to avoid delays.

• Keep communication clear and timely with the refinery’s attorney and seller.

  
  

Cargo ship loading fuel at port terminal

Final Thoughts on Purchasing EN590 from Refineries

Purchasing EN590 directly from refineries is straightforward when following the outlined steps. Buyers who submit proper documentation and select the right procedure can complete deals in less than three days and receive product delivery within four days. The involvement of a dedicated attorney representing multiple refineries adds security and speed to the process.

If you have a real buyer with paperwork ready, this process offers a reliable way to source quality EN590 fuel at competitive prices. Start by preparing your LOI and KYC documents and reach out to the refinery’s attorney to begin the transaction.