Asia/Pacific News
Malaysia's Techfast Holdings Reports $535 Million Bunker Supply Deal
A subsidiary of Malaysian manufacturing firm Techfast Holdings has signed a bunker supply deal worth as much as 2.2 billion ringgit ($535 million).
Techfast subsidiary Fast Energy has agreed to provide marine fuels supplier Wise Marine with 10,000-30,000 mt/month of bunkers over the next three years, the company said in an exchange filing on Monday.
The fuels -- low sulfur fuel oil, low sulfur marine gasoil and high sulfur fuel oil -- will be priced at a premium to Singapore assessments from S&P Global Platts, and Techfast currently values the contract at about 2.2 billion ringgit based on current prices. Payment will be due 30 days after the bill of lading being issued for each shipment.
Wise Marine is a supplier in Port Klang, currently operating five vessels, and will take on a sixth as part of its agreement with Fast Energy.
The deal is "in line with Techfast Group's objectives to diversify its business into the large volume and potentially lucrative oil and gas sector," the company said in the filing.
"The oil and gas sector is expected to expand with surges of demand post pandemic.
"The current recovery trend of crude oil prices paints a bright prospect.
"The group will benefit from the current port congestion at Port Klang and other major ports in Malaysia and Singapore."
In January Techfast said it was seeking to diversify its business into the bunker industry and hire five employees into a new petroleum trading division.
