I am a Texas jobber and I have organized a colalition of several other Texas jobbers for the purpose of using our collective credit power to purchase motor fuels (D2, UnL 87, & 93) on the oversupply and / or international market.
I am looking for D2-UnDyed, US for on highway use, 15P / MM Sulphur content. I will welcome any offer of 10P / MM EN590 as well. After the D2 allocation is finalized I will be looking for a reliable supplier of UnLeaded 87 & 93 as well.
Since we are end users our requirements will be a little more challenging then just dumping the fuel into some storage facility. Because we are end users we do not have a large volume storage capability so we need to find someone who can inject the product into the pipeline (s) we currently lift product from.
The Pipeline we lift apx. 75% of our fuel from is Koch (Flint Hills) . This is problematic because Koch is a Texas origin product only pipeline. However Koch and Colonial are owned and operated by the same Corp. So an injection into Colonial should be able to be traded for Texas origin fuel in Koch.
Because we are end users we will have to grow our allocation over time as we have to work with the pipeline operator (s) in regards to pipeline space availability, line speed and storage capability at the terminals. We also have contracts that need to be honored but as they expire we intend to replace tha product with discounted product.
This is a schedule that is realistic for us to contract for.
25, 000MT x 1 Month = 25, 000MT
50, 000MT x 2 Months = 100, 000MT
75, 000MT x 1 Month = 75, 000MT
100, 000MT x 8 Months = 800, 000MT
This totals 1, 000, 000MT the first year. We desire a 100, 000MT / Month x 60 Month contract when we reach 100, 000MT / Month. It is possible that we can lift 200, 000MT / Month but several logistical issues will have to be addressed before I can commit to that volume.
We are looking for a price in the $400. 00 / Metric Ton area. We will consider a price tied to Houston Platt on a 90 day average.