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Vitol Group Brochure 2011

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Pound for pound the best physical oil and gas trader in the world.

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Vitol Group Brochure 2011

  1. 1. ENERGYENERGY 2011
  2. 2. Group performance TOTAL ENERGY VOLUMES GROUP TURNOVER BREAKDOWN OF GROUP TURNOVER 2010 SPOT CRUDE PRICES VITOL GROUP 2009 EMISSIONS (equity basis) millions of metric tonnes 400 billion US dollars 200 billion US dollars US dollars per barrel (Dated Brent) 100 Tonnes CO2 e 97.25 3814 180 *394 *195 350 191 2208 103785 160 80 300 316 *79.50 20.8 140 291 72.39 145 143 250 120 60 65.14 266 74.8 195 271425 61.67 4.3 200 100 13.8 229 54.52 116 201 200 150 80 14.9 40 160558 1060 82.4 38.27 60 29.2 37.2 100 61.9 40 20 50 20 Crude Oil 74.8 tCO2e EFFICIENCY Gasoline & Naphtha 37.2 00 00 Gas Oil & Jet 29.2 00 E&P 160558 0.0284 tC02e/bbl Fuel Oil 14.9 VTTI 103785 0.0029 tC02e/m^3 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 Natural Gas 13.8 Travel 3814 n/a n/a LPG 4.3 Coal 2208 0.2558 tC02e/te coal Other trading 20.8 Offices 1060 0.0093 tC02e/ft^2 *As at 10 January 2011 Total 195.0 Total 271425
  3. 3. ENERGY 01CONTENTSViTol Trading Terminals, refining and shipping02 Welcome 16 Introduction 44 Introduction04 A physical trader 18 Crude Oil 46 Terminals06 Global reach 19 Natural Gas 48 Case study08 Local understanding 20 LPG – A major new terminal for Florida10 Speed & flexibility 21 LNG 50 Refining12 Partnership 22 Case study 52 Shipping14 People, systems & liquidity – Pre-financing of crude oil 24 Naphtha UpsTream 25 Gasoline 54 Introduction 26 Gas Oil & Jet 56 Upstream 27 Vitol Aviation 58 Case study 28 Fuel Oil – Marketing a new crude oil 29 Coal 30 Power index 31 Carbon 32 Case study 60 Network Locations – Utility energy supply 34 Ethanol 35 Methanol 36 Chemicals 37 Non-Ferrous Metals 38 Case study – Securing the future of a coal mine 40 Sugar 41 Risk Management 42 Case study – Risk Management
  4. 4. 02 VITOL ENERGY 03A WARM WELCOMEThe Vitol Group exists to help meet the energy needs of Our trading is, first and foremost, physical. We charter tankers and move crude oil of experience in the business of oil transportation, market intelligence, refining, a rapidly changing world. and oil products. Products such as gasoline, diesel and heating oil, fuel oil, jet distribution, marketing, trading and finance. fuel, naphtha and non-ferrous metals, as Our shareholders are our employees, and well as ethanol and chemicals: all over the this fosters a true spirit of partnership world, every day. And we pipe gas, fill and internally: every facet of the business andOne of the world’s largest independent energy trading operate terminals, ship coal and sugar. its well-being is of fundamental importance to us all. We attract talented entrepreneurs companies, we find, extract, refine, trade, store and transport The breadth and reach of our global who respond to the exciting opportunities network gives us a profound understanding that an independent company gives them. materials and resources from where supply is abundant of the intricate interdependencies of the world’s energy markets. Our status as a We’re resourceful and adept at understanding and managing risk. We trust to where demand is great. We forge connections; we trade private company and non-hierarchical our people, and give them considerable partnership structure gives us a unique ability responsibility. We make decisions quickly, physical commodities; we help make things happen and to act swiftly, innovatively and decisively. with short chains of command.markets work. We are, by any standards, a major participant in world energy trading. In 2010 This solid platform allows us to build long-standing partnerships with our we shipped nearly 400m tonnes of crude customers, who look to and rely upon oil and product; we had revenues of $195 bn Vitol for nimble thinking, creative and we offer 24-hour coverage of world solutions - and an unwavering There, any apparent similarities with other oil and gas markets. We also couple physical resources commitment to reliability. with in depth expertise in risk management.conglomerates end. We do things differently, and the Founded in 1966 with the focused aim ofdifference lies less in what we do than how we do it. This trading crude oil and oil products, Vitol is still resolutely an independent group of brochure is designed to take you inside the world of Vitol separate companies, each staffed by energy professionals with a true depthand show you how our 360° expertise and unique culturecombine to make us one of the energy sector’s businesspartners of choice.
  5. 5. 04 VITOL ENERGY 05A PHYSICAL TRADEROurs is primarily a physical distributionbusiness and one that operates on atruly global scale. We identify imbalancesbetween supply and demand and we ...to where it is neededact quickly and safely to restore the When massive Mediterranean swells caused Algeria’s Arzew-Bethioua port to close down, supplies of LPG to Western Europe were threatened. Our ability to take on tough physical equilibrium. We move energy from trading challenges meant that we were able to supply a region extending from southern France to eastern Poland by transporting LPG in rail cars over the Alps. where it is sourced and stored…We are not speculators on absolute pricemovements. Nor do we expose ourselves Our principal responsibility is to our customers; we are able to think fast and 134m Tonnes of CrUde oil sales in 2010or our customers to unnecessary risks. act decisively. Vitol is a broadly based group VersUs 110m Tonnes in 2009Rather, we use our worldwide reach, of complementary businesses and welocal understanding and experience to have the systems, people and flexibility to anticipate change, marshal resources and deliver innovative, effective and reliable make intelligent connections, optimise economies of scale and create external 5m+ oVer 5m Barrels of CrUde oil andlogistics solutions. partnerships every bit as enduring and prodUCTs Traded eVerY daY BY ViTol open as their internal counterparts.
  6. 6. 06 VITOL ENERGY 07GLOBAL REACHVitol’s global reach means we have apresence and local expertise whereverin the world energy is sourced, stored,transported, traded or needed. The sizeand diversity of our complementaryworldwide interests means that wetruly understand the markets in whichwe operate…There’s more to running an international network than simply having offices around As one of the world’s largest oil and gas traders, we understand the nature of the 6 regional CenTres ...and we understand the relationships between themthe world. We forge partnerships with local relationship between energy demand businesses and hire the best people to help and fuel supply. Our information systems There’s more to global reach than having a presence all over the world. Global reach is the ability to see the us work with, not against, the prevailing business culture. Indeed, we are often told enable us to see opportunities across oceans and geo-political boundaries, 21 addiTional offiCes WorldWide bigger picture, gain local insights and anticipate how changes in demand in one part of the world will affect supply to another.by customers that we’ve won a contract and we have the shipping and storage A particularly cold winter in Asia means that demand for kerosene – jet fuel – escalates as people turn to 3,150because we’ve clearly tried harder to gain resources to rapidly adapt to changing an understanding of how local practices, circumstances and consistently try to it for domestic heating. Because we know when, where and how this happens, we’re able to source, trade regulations and cultural differences make the right trades at the right time. emploYees in Trading & UpsTream, VTTi and deliver alternative supplies of jet fuel for the US and European markets which otherwise would havecharacterise their local markets. and araWaK WiThin The ViTol groUp been supplied from Asia.
  7. 7. 08 VITOL ENERGY 09LOCAL UNDERSTANDINGWe pride ourselves on our commitmentto embracing the nuances, dynamics andunique sensitivities of local markets. Vitol isa partnership, and one that looks to formexternal partnerships based on fair andmutually agreed objectives wherever in theworld we are doing business. We listen… We employ the best local people and use their expertise and experience to 250 CarBon proJeCTs WorldWide ensure that wherever we are doing business, we are sensitive and alert to the cultural, economic, political and environmental concerns of the community. There is no imposition of ‘one size fits all’ solutions dreamed up ...and we learn in a distant Head Office. Rather, we form Ghana’s offshore fishermen told us that our seismic surveying ship was a problem for them, partnerships born of common interest particularly at night, when their small wooden boats were effectively undetectable by Vitol’s and long term sustainability. seismic vessel. We commissioned local people to help us make simple metal radar reflectors for the fishing boats so that they could be seen and avoided at all times, letting them carry on with their business, while we carried on with ours.
  8. 8. 10 VITOL ENERGY 11SPEED & FLEXIBILITYEnergy markets are volatile. They changewith the political climate, with shifts insupply and demand, and with currencyfluctuations. They change with theweather, with elections, with technologicalbreakthroughs and with economicbreakdowns. We anticipate… ...and we act fast Our strength lies in being able to anticipate and react to change faster and more 5,291 ship VoYages in 2010 With existing shipping unable to convey the required tonnage through the inland waterways of the Amazon river, we spoke to ship owners and marine architects and commissioned vessels of wider beam and shallower draft. effectively than our competitors. It is a strength that gives us the time and space to innovate, to think laterally and to make the most of the opportunities presented to us 200+ ships on The sea aT anY one Time by a unique, comprehensive and balanced portfolio of energy sector interests.
  9. 9. 12 VITOL ENERGY 13PARTNERSHIPVitol is a very different kind of business.It is a privately owned company andone in which the focus is always, withoutexception, on our customers. And whenwe say customers…Our partnership model is at the heartof the way we do business and gives us This is a confederation of entrepreneurs in which everyone works together for the 330 aCTiVe emploYee shareholdersa very real advantage as compared with greater good of both the business and competitors who are required to consider our customers.the needs of external shareholders as well as customers. The partnership model is not confined to inward-facing expressions. Far from it. Vitol is owned by its employees. That Our customers are partners, too, andmeans that every business decision our relationships with them are born ofhas the potential to affect – positively equality, mutual respect and the desireor negatively – every employee. Vitol people have a very real interest in seeing to build and sustain lasting value for both parties. ...we mean partnerssuccess across every part of the business. At the end of 2003, Iraq was on the brink of a major humanitarian crisis. Bombed refineries and wrecked infrastructure meant that the country had effectively run out of gasoline. Vitol’s partnerships with customers on the ground allowed us to act quickly. We shipped gasoline to the only available port – a military container dock in Umm Qasr – and off loaded into fleets of specially adapted trucks. We also provided the Iraqi Oil Ministry with an extended line of credit and so helped avert a potential disaster.
  10. 10. 14 VITOL ENERGY 15PEOPLE, SYSTEMS & LIQUIDITYVitol’s unique combination of talent, ...and we have the human, information technology and financial resources to make the most of themtechnology and resource management Local knowledge, experienced traders and fully integrated data management systems allowed us to understand the underlying reason for a big surge in demand gives us the ability to turn ideas for propane in the Bordeaux region. The region’s plum brandy producers were rushing to dry the plums after a particularly wet harvest. If you know why demand increases, you know how and when to meet it.into reality – quickly and securely.We see opportunities…Vitol people stay with Vitol. We aim to hire the best people in the marketplace and we We have the right people and the right information. Finance is the facilitator $195bn of reVenUe in 2010make sure that they share our professional that allows us to complete the circle andvalues. We hire on merit and experience, take decisive action – even in volatilenot just potential, while our partnershipstructure fosters a culture of conservative or high priced markets – secure in the knowledge that we have both proven risk 44 ConseCUTiVe Years ofrisk management. management tools and robust liquidity profiTaBle operaTion metrics. Whether we are structuring a Our people have the best information at pre-finance deal or working with any their fingertips, thanks to our proprietary of our 50 or more worldwide banking ‘Vista’ system. Unequalled in the industry, partners, we are known and trusted as athe system – designed by Vitol for Vitol – business with firm and carefully managed allows users to view the progress of each financial foundations.transaction from all angles, connecting everyone involved to a ‘big picture’ of real time data.
  11. 11. 16 VITOL ENERGY 17 TRADING Trading is the engine of our business, and energy – in many different physical forms – is the resource we trade the most. In fact, almost all of the Vitol Group’s activities are driven by trading – from exploration, to shipping, to storage. More than simply a thread linking every aspect of what we do, trading is the conduit through which we receive and share vital market information, maintain the balance and flow of our liquidity, and forge lasting, rewarding relationships with customers all over the world. We take pride in our ability to take can see the real relationship between on difficult, complex projects and cause and effect. We don’t make decisions deliver effective solutions quickly and based on theoretical modeling or transparently. Because our partnership mathematical abstractions. With 5,291 model is based on collective responsibility, ship voyages in 2010 and over 200 we are careful to assess risk exposure on ships at sea at any given time, Vitol is – the ground, in local markets – where we by any definition – a very physical trader.
  12. 12. 18 VITOL ENERGY 19 01 gas drying unit at BeB’s underground gas storage site in harsefeld, near hamburg 02 Vitol has long term pipeline contracts extending up to two decades aheadCRUDE OIL NATURAL GAS 01 02What we do how we do it What we do how we do itVitol is a significant participant in global crude oil markets and crude oil is the largest part of Vitol’s total energy portfolio. In 2010 we sold around 130m We believe that we offer a competitive advantage because we have the flexibility, speed and logistics expertise that our customers need and expect. 134m Tonnes of CrUde oil sales in 2010 Our gas teams operate across three continents – Europe, Asia and the Americas – in both pipeline product and LNG, and we follow the business model The scale of our operations and extent of our geographical coverage allow us to take an holistic view of market changes, leverage economies of 20 bcm ViTol moVes 20 BCm of phYsiCaltonnes of crude oil which amounts to more than More than 44 years experience of turning market that characterises every part of the Vitol Group: scale and match supply to demand wherever and gas per Year in eUrope 44 Years2.5m barrels per day. This compares with crude oil intelligence into market advantage as well as our physical trading based on transportation and whenever the need arises. We have built on the 30 mcmsales of 110m tonnes in 2009. extensive links with all the major crude producers logistics, storage and arbitrage. relationships in place with our energy industry and refiners means that we are able to work with of experienCe in TUrning partners, and invested in new relationships andWhere we do it existing and new crude streams in any part of the inTelligenCe inTo marKeT adVanTage With over 15 years’ experience in the gas business, innovative contractual arrangements with suppliers, ViTol’s sTorage faCiliTies in eUrope deliVerVitol trades crude oil globally. We have a presence world. This will help the producer to understand the Vitol has grown it’s physical supply to more than pipeline and storage operators in the gas sector, Up To 30 mCm per daY of phYsiCal gasand on the ground expertise wherever crude is real value of the crude oil. 20 BCM per annum in Europe alone, supported and with commitments reaching out nearly two produced, traded, stored and supplied to customersfor refining. This means that we operate in Africa, the We also help our customers manage their risk on 394m Tonnes of ToTal CrUde and enabled by storage capacity across the key countries. We work with producers, wholesalers, distributors decades ahead. 1.5mMiddle East and the Far East, as well as in Russia, the margins and prices, all within an overall commitment and industrials on a global basis – our unique In addition to being one of the main liquidity prodUCT sales in 2010 Tonnes of lng sales in 2010Caspian, and North and South America. to the development of long term relationships that independence combined with innovative solutions providers at trading hubs and cross border points, benefit all parties. Our long established ventures for has made us the partner of choice for our significant and flexible portfolio makes us an We have local offices in countries around the example with the state oil companies of Nigeria and a number of important industry participants. ideal trading partner for tailor-made, structured world covering everywhere from Buenos Aires to Oman are clear demonstrations of our commitment products. We are able to offer our clients a wide Beijing, and Luanda to Latvia. Having a presence on to long term relationships. Where we do it range of both physical and virtual services – helping the ground is key to our approach to getting first We deliver gas to customers in virtually every country them to expand across markets and borders. They hand information as it happens and sharing that Overall, we lift crude oil from all the key producers across Europe – from Slovakia in the East to Ireland can benefit from Vitol’s core strengths in risk and information, quickly and efficiently. and sell to every refining company in the world, in the West, and from the North Sea to Italy and Spain portfolio management, where we are able to help wherever they are located. in the South. them to maximise the profitability of their portfolio with a range of sophisticated solutions. Across the Atlantic we source and trade Canadian gas, and facilitate the growing LNG trade around the US Gulf region, where we have invested heavily in storage.
  13. 13. 20 VITOL ENERGY 2101 The Charlton forms part of a 40+ LPG tanker fleet built to 02 Oman LNG’s tanker, Sohar LNG, was one of Vitol’s first Vitol’s specifications within the last ten years to enable us lng charters to meet increasing demand with flexibility and speed 01 02LPG LNGWhat we do Where we do it What we do Where we do it ToTal indUsTrY lng VolUmesVitol is one of the largest international LPG traders. Our fleet ships considerable volumes to countries 40+ Vitol moved into the LNG marketplace because We have developed existing relationships and World gas intelligence, may 2009 300 mTWe have the world’s largest pressurised vessels and, where bottled gas is popular – such as Portugal, it is a logical progression for our business and has quickly established new supply partnerships in Asia, mT = m tonnesindeed, the largest fleet. France, Germany, Poland, Morocco and Turkey – fleeT of lpg TanKers BUilT clear synergies with our other trading, shipping Europe, the Middle East and the Americas. Through as well as supplying cargoes to the US, China, To ViTol’s speCifiCaTions and storage activities as well as with the interests our network of regional offices and locally in country At the core of our operation is a fleet of more than West Africa, East Africa and the Caribbean. of our customers. we are able to work with our customers on their 200 mT40 LPG tankers. These vessels, built primarily within short and longer term requirements.the last ten years to Vitol’s specifications, enable us Vitol also has access to LPG storage in Europe, We started by focusing on the pure spot market, 185 mT 172 mTto offer excellent flexibility and, importantly, speed as well as West Africa, through a joint venture cargoes not sold under long term contracts. While how we do itand reliability. Refiners tend to have limited LPG that will see significant reductions in flaring in this important sector of the industry is continuing Vitol’s independence is important to our LNG 158 mTstorage on site, and with increasingly stringent Nigeria by providing infrastructure for the gas to grow, it will remain a small proportion of the total customers. Unlike many of the largest operators, 140 mTflaring regulations they need to be able to ship to be marketed inland. trade annually. Increasingly, Vitol is moving more we are impartial and uncompromised, with no jointthe gas to market quickly. towards long term contracts to support our natural ventures or upstream/downstream obligations. 2005 how we do it gas business and provide broader services to our Our business is based on the market fundamentals, 2006By collecting, shipping, storing and trading gas that Our size is not and never has been an end in itself: customers. We continue to apply our core energy and our customers gain by our ability to respond 2007would otherwise be flared, we are meeting the needs it is simply a consequence of our success and the trading skills to bring opportunities and new risk with speed and flexibility. 2008of both the petrochemical industry and domestic strength of our customer relationships. The Vitol management solutions to the sector. By taking LNG users, as well as supplying the growing demand for LPG team is truly multinational, and we use local from areas of surplus, we are actively contributing to 2009 (forecast)autogas. We are also making the best economic use knowledge and insights to anticipate demand and the growth in the market. 2012 (forecast)of a resource that otherwise would do no more than react swiftly and efficiently. Increasingly, we work contribute to climate change. with oil and gas companies as a logistics and risk management solutions provider, and we are known In addition, Vitol is highly active in the refrigerated for our ability to bring innovative thinking to life long-haul arbitrage business, ready to move cargoes through decisive action. wherever global market conditions dictate.
  14. 14. 22 VITOL ENERGY 23CASE STUDYPRE-FINANCING OF CRUDE OILWhen a small producer discovered a crudeoil field in Kazakhstan, they wanted torelease cash from future exports to assistin the development of their business.Vitol was invited to participate in Vitol’s presence in this three-waya pre-financing venture: agreement was the key to its success.• itol entered into an offtake agreement V with the producer.• he bank agreed to loan funds to the T producer based on the security of the offtake agreement.• tri-partite agreement was signed A between the producer, the bank and Vitol.• itol pays part of the value of each V cargo directly to the bank, repaying the producer’s loan.
  15. 15. 24 VITOL ENERGY 2501 Vitol trades and operates in every naphtha producing 02 The truck loading rack at our amsterdam Terminal has country in the world the capacity to fill between four and six trucks per hourNAPHTHA GASOLINE 02 01What we do What we do how we do itVitol trades and moves approximately 14m tonnes of naphtha globally per year. The volume bought and sold has grown steadily over the last five years. We have a growing number of partnerships in Russia – where we have an exclusive naphtha terminal in Kaliningrad – and the former Soviet states, Asia and Every day, Vitol moves over 850,000 barrels of gasoline – more than twice the UK’s entire daily demand. At any given time, Vitol will have between In a non-commoditised market, where gasoline specifications differ according to state and country regulations and where change is increasingly driven 22.4m Barrels per daY of gasoline 6.4mWe source, trade and move naphtha feedstock and North Africa.   50 and 100 gasoline tankers on the world’s oceans, by environmental concerns and a growing demand ConsUmed gloBallY in 2010clean condensate for petrochemical customers, and is a significant supplier of gasoline to the USA. for low sulphur products, market intelligence 850,000refineries and large industrial concerns, leveraging We have a truly global presence and principal We are experts in identifying added value and really matters. Our experience, combined with our the logistics advantages available to us through the offices in Houston, Geneva, Singapore and London. arbitrage opportunities and we aim to develop long understanding of worldwide energy markets, gives scale and flexibility of our global shipping, strategic Consequently, we are able to optimise our arbitrage term strategic relationships, either by supplying or us an in depth, real time awareness of the specific ViTol Trades approx. 850,000 Barrelsstorage and arbitrage operations. We strive to be activity through 24 hour coverage of world markets. by offtaking and often adapting to changing local needs of end users. Our logistics reach and ability of gasoline per daY WorldWidethe leader in both supply and delivery contracts to Barrels per daY of naphTha specifications to ensure security of supply. to act decisively wherever demand occurs meansensure the best value for our customers. how we do it ConsUmed gloBallY in 2010 we’re able consistently to understand and We bring all our core oil trading values, skills and Where we do it meet those needs.Where we do it services to the naphtha market: clients rely on us for We operate, trade and participate in tenders inWe operate and trade with every producing country our physical expertise, our professional operations every producing country in the world. We own in the world. We lift from Saudi Arabia, the Emirates, staff as well as our absolute commitment to deliver and lease extensive storage in Singapore, Fujairah the Russian Federation, South America and North products that are on specification and on time. (UAE), Houston, California, the Netherlands, Latvia,and West Africa to name a few. We facilitate the Our ability to always deliver is a reflection of our Argentina and Canada. We serve the requirements of requirements of refiners, state-owned oil companies commitment to building long term relationships, refiners, state-owned oil companies and marketers and marketers in North America, Europe, Russia, the the flexibility afforded by our shipping and storage in North and South America, Europe, the Middle East,Middle East, Africa and the Far East – and are working resources, our financial security and our complete Africa and the Far East – and are working hard to hard to meet the growing needs of refineries and range of risk management skills and tools. meet the growing needs of refineries and ethylene ethylene plants in China and India. plants in China and India. We have a growing number We have the skills and track record to respond of partnerships in Russia and the former Soviet to opportunities swiftly, reliably and, whenever states. Our markets are global and include California, necessary, innovatively. one of the most highly regulated gasoline markets in the world.
  16. 16. 26 VITOL ENERGY 2701 Vitol supplies jet fuel to airlines throughout the world 03 our storage capability extends to strategic locations in 1102 Vitol’s experience and expertise in handling physical product countries across 5 continents. We have capacity of 6m cubic plays an essential role in our success within this sector metres, and new projects that will grow the capacity to 8m cubic metres by 2013, with terminals at the worlds key trading hubs.GAS OIL & JET VITOL AVIATIONWhat we do how we do it What we do how we do itVitol is the world’s leading trader in middle distillates and has a real depth and reach of expertise in global arbitrage business. We are one of the largest users of Excellent market intelligence underpins each and every trade we make. We are keen observers of economic, political and consumer trends on both Vitol Aviation was established in 2010 for the specific purpose of providing both bulk and into wing jet fuel supply to a broad inland customer base, sharing the As one of the world’s largest bulk traders of jet fuel, Vitol has always been a major participant in trading markets, with significant supply contracts with all Over 1m Tonnes of JeT fUel sold inTo 25monshore tank storage, with 70% of product stored in macro and micro levels; we understand how cold benefits of Vitol’s global supply chain efficiencies and the major export refiners, including in the Middle plane in Usa and oVer 1 mVitol-owned tanks. weather in Asia affects supply to Europe; we try expertise. A long term value offering of both physical East, Europe and the Far East. Underpinned by this Tonnes of JeT fUel sold to predict, anticipate and react to international, jet fuel, risk management and carbon reduction security of supply, we have an understanding of the inland aT airporTs in BUlKVitol already supplies jet fuel to many of the world’s national and regional imbalances wherever in instruments. dynamics that influence jet fuel prices and linkage and inTo plane in eUropeairlines. We are rapidly expanding our business in this the world they occur. with our trading and risk management business. 1marea, adding value through our wealth of experience Where we do it This is supported by an unwavering commitment to in handling physical products. Drawing on our global trading, shipping and Barrels per daY of gas oil PTFC, now Vitol Aviation Company, has been becoming a significant participant in the wholesale storage resources and expertise in the US, South ConsUmed gloBallY in 2010 supplying aviation fuel to the US West Coast since and retail jet markets. A firm base on which to build Tonnes of JeT fUel aVailaBleWith our strong storage position and market America, Europe and Asia, we are ideally placed to 2007 and now supplies more than 1m tonnes this new enterprise. in The ara Basin and 70%expertise we are one of the key global suppliers of move cargoes and realise the opportunities arising per year into plane at Los Angeles, San Francisco, assoCiaTed sUpplY Chains,gas oil and ultra low sulphur diesel (ULSD). As the from regional and global imbalances. Our detailed Honolulu, Las Vegas, San Diego and Ontario proViding seCUriTY of sUpplYworld moves towards ever cleaner sources of energy, knowledge of specifications – particularly important of ViTol’s onshore gas oil and airports. Since then Vitol Aviation has expanded it’s and flexiBiliTY.Vitol is also emerging as one of the significant players in jet fuel – gives us a real advantage in achieving JeT sTored in ViTol-oWned TanKs airport network to include Orlando (MCO and SFB), in biodiesel, offering a full range of fuels from B5 to better trading performance. Melbourne, Gainesville, Jacksonville and Daytona B100 based on sustainable oils. Beach in the US, Frankfurt, Brussels, Luxembourg, Global arbitrage has long been a core Vitol strength. Liege, Stansted and Manchester in Europe and Hong Where we do it Today, it is a structural feature of the middle distillates Kong in Asia. Further plans are in place to expand this We have offices in Houston, Geneva, London, market and, as such, Vitol is fully qualified and network to include all major global hub airports.Singapore, Bahrain, Dubai and Moscow and we equipped to optimise trading opportunities – serve the key distillates markets in Asia, Europe, both now and in the future.the Middle East, South America and the US. We are actively expanding our business in Africa and China. flexiBle gloBal sUpplY Chain generaTing BUlK effiCienCes for The end UserOur middle distillates trading is supported by Vitol’s expertise and scope of resources in storage, based in Singapore, the Middle East, the US and a network of locations throughout Europe. 02 03 01
  17. 17. 28 VITOL ENERGY 2901 euro Tank rotterdam is equipped with jetties capable of 02 Capesize mV xin fa hai, loading at Bayan’s newly accommodating vessels ranging between bunker barges built 60kt capacity Kalimantan floating anchorage and VlCCs. The second phase of the expansion was completed off East Kalimantan, Indonesia at the end of 2008 and has increased capacity to 642,000m3. phase three will be completed by the end of 2011FUEL OIL COALWhat we do how we do it What we do Where we do itVitol is one of the most long established and active independent physical traders in the global fuel oil market. Every month, we ship more than 1m tonnes We have the flexibility, speed and logistics expertise that our customers need and expect. Our longevity and success stems from our ability to add value Around 30% of The World’s fUel oil is Having entered the coal market in 2006, Vitol has grown rapidly to become one of the world’s top 5 coal traders. Vitol partners, finances and owns mines in Indonesia, Canada, South Africa, Columbia and Russia. We supply across the Asia Pacific region and into all Vitol is also focused on other areas central to the sector. In dry freight Vitol adds real value to their coal presence by taking longer term positions in cape, of fuel oil. Approximately 50% of our fuel oil business beyond simply moving physical product. Vitol is ConsUmed BY ships major European power utilities. Vitol is one of panamax, and handy sized vessels and compliment is based on trading feedstocks, bought by refiners for resolutely customer focused, providing fuel oil In recent years, the coal market has become the largest suppliers to the Comision Federal de this by being an active player in the shipping futures 50%further upgrading. solutions, stocks and risk management solutions increasingly liberalised, with new grades of coal Electricidad, Mexico’s state power utility. market. Additionally Vitol also now has a presence in all over the world. We also have the experience and and pre-financing instruments creating a more the biomass market and is involved in shipping and We have a large and increasing share of the bunker in-house blending expertise to meet refiners’ widely sophisticated environment and one that is ideally how we do it marketing of wood pellets of oUr fUel oil is BoUghTmarket, driven by the establishment of strong varying demands for different blends of feedstock. suited to Vitol’s experience and expertise. We cover Our flexibility, liquidity and risk management BY refiners for fUrTher Upgradinglong term relationships with fleet owners. We have a wide range of specific origins for both steam coal expertise allow us to work in more challenging Our approach is personal and trusted. We build long also built an extensive and expanding network of We are able to optimise the value of a seller’s stream and anthracite, have a presence in every major environments, both as a producer and a buyer, and term relationships with local partners and we investstorage terminals – both owned and leased – in key and to meet and exceed the demands of refinery, mining region and are successfully meeting the to trade in forward markets up to five years ahead. in a shared future.strategic locations. bunker and vessel owners. We succeed by being diverse needs of customers around the world. We are also applying models employed in oil and consistently dynamic, innovative and well-informed. natural gas; by focusing on the physical aspects, Where we do it gloBal fUel oil moVemenTs As well as investing significantly in production we can add significant value in areas such as coal Vitol trades fuel oil globally. We have extensive output, we have signed long term contracts with finance and logistics. storage facilities including Rotterdam, Fujairah producers in both the Far East and Europe andand Singapore. We source high sulphur fuel oil are now a major trading presence in steam coal. from markets such as Mexico, the Middle East Similarly, we are finding long term outletsand the former Soviet Union, to ship to Asia and with utilities. CANADA RUSSIAtake low sulphur fuel oil from the USA and Europe,often to Asia. Feedstocks are frequently sourced Anthracite is another significant strength, withfrom Europe, North and West Africa and shipped long term contracts in Russia, Ukraine and South to refiners in the US Gulf Coast. Africa, and we support this with a full break-bulk operation (for storage, handling and wholesale) in Ghent, Belgium. COLOMBIA INDONESIA hsfo ViTol’s gloBal mining operaTions lsfo SOUTH AFRICA Vgo/lssr 01 02

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