By Kang Doo-soon and Lee Ha-yeon
South Korea’s major oil refiner Hyundai Oilbank Co. will supply 2.1 million barrels of gasoline to the crude oil trading arm of Mexico’s state-run Pemex next year, a move that is expected to pave the way for its inroads into Latin American countries.
The Korean refiner said Wednesday it has signed a deal with Mexico’s P.M.I. Comercio International to supply 2.1 million barrels of gasoline during the first half of next year. The company said it is the first Korean refiner to supply oil products to the country’s state-owned firm under a long-term direct supply contract.
A long-term direct supply deal allows a refiner to sell its products to its client under consistent conditions that would prevent volatility unlike deals in the spot market that require traders to clinch a deal. Hyundai Oilbank expects the latest direct contract would help it make inroads into other Latin American countries beyond its traditional export markets in Asia.
As part of efforts to diversify its markets, Hyundai Oilbank has supplied more than 5 million barrels of gasoline to New Zealand every year since 2013. It also signed a deal with the Republic of South Africa last year to supply a maximum of 1.2 million barrels of gasoline until the end of this year.