Hyundai Corp., Signed a contract for supplying US$310 million heavy oil to the Guam Electric Power Authority
― Won a supply contract for total 850,000 ton heavy oil for 3 years, through fierce international bidding competition with multinational major oil companies in the midst of global energy demand downturn by Coronavirus outbreak ―
▲ For this contract, there was no signing ceremony separately due to COVID 19 but instead each party signed a contract in Guam and in Korea, respectively. The photo shows the signing ceremony for extension contract on Aug. 20, 2015 where Mong-Hyuk Jeong, chairman of Hyundai Corp. (right) and Joshep Duenas, chairman of Guam Public Fare Committee (center) are taking a commemorative photo after signing a contract at Guam Electric Power Authority, USA.
Hyundai Corporation won the order again for the project to supply US$310 million (KRW 360 billion) heavy oil for power generation fuel in Guam, USA.
Hyundai Corp. signed a contract for supplying total 850,000 ton heavy oil for power generation fuel to the Guam Power Authority for 3 years from September 2020 to August 2023, on the 21st Sep. (Mon). This contract did not have a signing ceremony separately where both business parties attend due to COVID 19 pandemic but instead, the signing ceremony was conducted in a non-face-to-face manner, in which each party signed a contract in Guam and in Korea and exchanged it, respectively.
The amount to be supplied this time corresponds to the total amount of heavy oil for power generation fuels, which accounts for about 70% of Guam’s total electricity production and the supply period is expected to extend up to 5 years as there is an option to extend it for an additional 2 years through an agreement in the future.
Hyundai Corp., since it won the first order for the project to supply the heavy oil for power generation placed by Guam Electricity Authority in August 2013, has succeeded in extending the contract once in 2015 and stably supplied 1,77 million tons of heavy oil (worth KRW 870 billion) for 5 years until 2018.
This time, Hyundai Corp. was selected again as final supplier after fierce bidding competition with multinational large oil companies including US major oil companies, which is evaluated as being highly recognized by the Guam Electric Power Authority for its price and quality competitiveness as well as the stable long-term supply capability of Hyundai Corporation.
In particular, it is evaluated more meaningful in the point that Hyundai Corp. secured a stable long-term supply customer in the difficult situation of global energy demand downturn due to COVID 19 pandemic recently.
Hyundai Corp. by consolidating the stable long-term cooperation partnership with the existing clients of heavy oil for power generation and ship, has a plan to expand the supply of clean fuel oil products such as ultra-low sulfur diesel in line with the tightening environmental regulations around the world by strengthening sales power in the future.