21 January 2011
CGL’s existing diesel supply arrangement reached the end of its term in April 2011 and supply proposals were sought from a number of alternative providers.
Vitol Singapore’s proposal offered the most competitive rates and also offered the opportunity for CGL to source fuel FOB (Free on Board) which essentially means that CGL has the option to buy the fuel ex Singapore and arrange for our own freight. This option has the potential to offer significant pricing advantages in the event that deliveries of part cargoes into multi ports becomes an option or if CGL is able to arrange back freight of other products from the North of Australia into Asia.
Vitol are the largest independent oil traders in the world and have a structure similar to a law firm whereby around 350 of the 800 employees are partners who exclusively own the business they operate.