SINGAPORE: New Zealand fuel company Z Energy plans to buy about 600 million litres, or more than 3.7 million barrels, of gasoline and diesel through a term contract from a South Korean refiner, the company said on Friday.
The contract, which is expected to be formally signed next month, will come into effect on Jan. 1 and follows a 19-month relationship with the same refiner through an intermediary, Z Energy said in a statement on Friday.
Z Energy did not indicate the duration of the term, price details or name of the seller, but said the contract was on better commercial terms than current arrangements.
Fuel from the contract will be delivered on roughly a monthly basis into major import terminals around New Zealand, according to the statement.
Z Energy produces around 75 percent of its total fuel requirements through New Zealand's sole 135,000 barrels-per-day refinery at Marsden Point, and imports the rest as refined fuel, the company's Chief Executive Mike Bennetts said.
"This contract differs from the previous contract both on the commercial terms and in that Z is now contracting directly with the refiner rather than through a third party," he added.
Z Energy acquired Shell New Zealand's downstream business and owns a 17.1 percent stake in Refining NZ, operator of the Marsden refinery, according to the company website.
It also owns over 200 fuel stations, and pipelines, terminals and bulk storage terminal infrastructure around the country.
The company supplies fuel to retail customers and large commercial customers like airlines, trucking companies, mines, shipping companies and vehicle fleet operators, its website states.
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