Hyundai General Trading Signs 360 Billion KRW Contract to Supply Heavy Fuel Oil for Power Generation with Guam Power Authority

[Asia Economy Reporter Suyeon Woo] Hyundai Corporation has once again secured a $310 million (approximately 360 billion KRW) project to supply heavy fuel oil for power generation to the Guam Power Authority in the United States.

On the 21st (local time), Hyundai Corporation signed a contract with the Guam Power Authority to supply 850,000 tons of heavy fuel oil for power generation over three years, from September this year to August 2023. Due to the impact of the novel coronavirus disease (COVID-19), the contract was finalized without a separate signing ceremony, with both parties exchanging signed documents.

The quantity supplied this time corresponds to the entire amount of heavy fuel oil used for power generation, which accounts for about 70% of Guam's total power production. There is an option to extend the contract for an additional two years through future agreement, potentially extending the supply period to a maximum of five years.

Hyundai Corporation first won the power generation heavy fuel oil supply project issued by the Guam Power Authority in August 2013, successfully extended the contract once in 2015, and stably supplied a total of 1.77 million tons (worth approximately 870 billion KRW) of heavy fuel oil over five years until 2018.

After fierce bidding competition with major multinational oil companies, including U.S. oil majors, Hyundai Corporation was once again selected as the final supplier. Hyundai Corporation was highly recognized not only for its price and quality competitiveness but also for its stable long-term supply capability. Furthermore, it is considered highly significant that the company secured a large-scale, stable, long-term supply client amid the challenging situation of a global energy demand slump caused by the recent COVID-19 pandemic.

Hyundai Corporation plans to strengthen its sales capabilities by solidifying stable long-term partnerships with existing heavy fuel oil clients for power generation and marine use, and to expand the supply ratio of clean fuel petroleum products such as ultra-low sulfur diesel in line with increasingly stringent environmental regulations worldwide.

Jung Mong-hyuk, Chairman of Hyundai Corporation Group

This content was produced with the assistance of AI translation services.