Hyundai Oilbank Begins Gasoline Exports to Hawaii, USA

Expansion of Stable Supply Sources through Export Diversification and Long-term Direct Transactions
Located in the Pacific, Advantageous in Transportation Compared to Oil-producing Country US Petroleum Products
Direct Supply of 3.6 Million Barrels of Gasoline and Diesel

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Oilbank is supplying finished petroleum products to Hawaii, USA for the first time on a long-term basis.

Hyundai Oilbank announced on the 28th that it has signed a long-term export contract for finished petroleum products such as gasoline and diesel with Hawaii. It will directly supply 3.6 million barrels annually through local retail distribution channels.

Hyundai Oilbank first supplied petroleum products to Hawaii in July. Based on stable supply and partnership, it decided to switch to a long-term contract starting next year. Unlike transactions through traders, long-term direct deals have the advantage of selling a fixed quantity under stable conditions.

The export volume contracted with Hawaii accounts for only 3.7% of the total petroleum product exports (as of 2020), but it is significant in that it created a new channel for export diversification. Hyundai Oilbank expects this contract to serve as a foothold for securing a stable domestic market in Hawaii and expanding its business area in the US mainland. Although the US is an oil-producing country, Hawaii is geographically located in the Pacific Ocean, making it advantageous in terms of supply stability and economic efficiency to import petroleum products from the Asia region.

Meanwhile, Hyundai Oilbank plans to actively pursue export diversification to offshore regions in response to changes in the market environment, such as China, which was South Korea's largest importer of petroleum products, expanding its refining facilities and starting exports, and Australia, where the self-sufficiency rate of petroleum products is expected to decline due to aging facilities.

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