Supply deal struck. File Image / Pixabay
A United States-based firm which invests in the production and transport of oil products has signed a deal for its future IMO2020-compliant marine fuel output.
MMEX Resources, which is to build a refining plant in the Permain Basin in southest Texas, has made agreements with two partners, according to a report by Hydrocarbon Engineering.
"One is with a super-major international energy and trading company to purchase our IMO 2020 compliant marine fuel and the other is with an international company to provide logistics to move our future products from West Texas Permian Basin to Texas Gulf Coast markets by rail," CEO and company president Jack W Hanks is quoted as saying.
Although the executive doesn't name the fuel oil trading company, he said that it has a "call on any expansion and future production, which gives us the incentive to start planning expansion".
From the start of next global shipping must use 0.5% sulfur bunker fuel or face penalities for not doing so.
The refining base in the US Gulf is expected to do well from the increased demand for 0.5% sulfur marine fuel expected from the start of next year.