Vopak To Vopak $620/600 On The Ground in Houston
- Jose Pagan
- 9 hours ago
- 3 min read
The energy market is constantly evolving, and securing reliable fuel supply at competitive prices remains a top priority for many businesses. Recently, a significant opportunity has emerged for buyers interested in US-origin fuel products available through Vopak terminals. This post breaks down the key details of the Vopak-to-Vopak transaction process, pricing, product availability, and delivery timelines for major fuel products on the ground in Houston, Rotterdam, and Fujairah.
Fuel Products and Pricing Overview
The current offer includes three main fuel products, each with trial and contract volumes available at competitive prices:
EN590 Diesel (10 PPM Sulfur)
- Price: $620 per metric ton (MT) for contract, $600 per MT for trial
- Trial volume: 200,000 MT
- Contract volume: 500,000 MT
Jet A1 Aviation Fuel
- Price: $88 per barrel for contract, $86 per barrel for trial
- Trial volume: 2 million barrels
- Contract volume: 10 million barrels
D6 Virgin Fuel Oil
- Price: $0.92 per gallon for contract, $0.86 per gallon for trial
- Trial volume: 400 to 500 million gallons
- Contract volume: 800 million gallons
These prices reflect US-origin products, ensuring quality and compliance with international standards. Buyers can choose between trial purchases to test the supply chain or enter into larger contracts for ongoing supply.
Ports of Delivery
The products are available at three strategic global ports:
Houston, USA
Rotterdam, Netherlands
Fujairah, United Arab Emirates
Houston serves as a key hub for North American buyers, offering easy access to US-origin fuel products. Rotterdam and Fujairah provide gateways for European, Middle Eastern, and Asian markets.
How the Vopak-to-Vopak Transaction Works
The transaction follows a clear, step-by-step process designed to ensure transparency and security for both buyers and sellers. The process takes place entirely between Vopak terminals, which are trusted fuel storage and handling facilities worldwide.
Buyer Issues ICPO
The buyer submits an Irrevocable Corporate Purchase Order (ICPO) including their Vopak account name.
Seller Reviews and Issues Commercial Invoice (CI)
The seller reviews the ICPO and issues a Commercial Invoice to the buyer.
Authorization for Vopak-to-Vopak Verification
The seller authorizes communication between the Vopak terminal managers to verify product availability.
Verification of Product Existence and Title
The buyer’s Vopak terminal manager confirms the product’s existence and title ownership.
Completion of Terminal Protocols and Documentation
The buyer completes all necessary terminal protocols and paperwork.
Seller Issues Full Proof of Product (POP)
The seller provides comprehensive proof of product to the buyer.
Injection and Release of Product
The product is injected or released at the terminal.
Buyer Makes Payment via MT103
The buyer transfers payment through an MT103 bank transfer, and title passes to the buyer.
Seller Settles Commissions
The seller pays commissions as agreed.
This procedure minimizes risk and ensures that both parties have verified the product and transaction details before payment and delivery.
Delivery Timing and Availability
Once the buyer’s ICPO is reviewed and accepted, the product will be available approximately 7 days later. This quick turnaround supports buyers who need prompt access to fuel supplies without long delays.
Trial volumes allow buyers to test the supply chain and product quality before committing to larger contracts. For example, a buyer interested in Jet A1 fuel can start with a 2 million barrel trial before moving to a 10 million barrel contract.
Why Choose Vopak-to-Vopak Transactions?
Trusted Terminals
Vopak terminals are globally recognized for secure fuel storage and handling.
Verified Product Ownership
The verification step between terminal managers ensures the product exists and the title is clear.
Streamlined Process
The stepwise transaction reduces uncertainty and speeds up delivery.
Flexible Volumes
Buyers can start with trial volumes and scale up to large contracts.
Multiple Port Options
Access to Houston, Rotterdam, and Fujairah allows buyers to choose the most convenient location.
Practical Considerations for Buyers
Prepare ICPO Carefully
Include your Vopak account name to avoid delays.
Understand Payment Terms
Payment is made via MT103 bank transfer after product release.
Plan for Terminal Protocols
Coordinate with your Vopak terminal manager to complete all required documentation.
Consider Trial Volumes
Use trial purchases to verify product quality and logistics before committing to contracts.
Monitor Market Prices
Prices may fluctuate; locking in contracts at current rates can provide cost certainty.
Summary
The Vopak-to-Vopak fuel supply opportunity offers buyers access to US-origin EN590 diesel, Jet A1 aviation fuel, and D6 virgin fuel oil at competitive prices. With products available in Houston, Rotterdam, and Fujairah, buyers can select the best port for their needs. The clear transaction process ensures product verification and secure payment, with delivery available about 7 days after ICPO acceptance.
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