South Korean oil refiner HD Hyundai Oilbank will supply 7.2m barrels of ultra-low sulphur diesel for electricity production in Guam over the next three years.
The company said it had struck a deal with Guam Power Authority to provide fuel through trading affiliate Hyundai Corp.
This will mark a transition away from heavy fuel oil for power generation in Guam.
HD Hyundai Oilbank priced the contract as worth KRW 857.8bn ($618.9m) based on international prices on the Singapore market.
Platts reported the deal signals the South Korean refining sector’s increasing attempts to find new markets.
Sales to China have fallen in recent months.
HD Hyundai Oilbank will also export 3.6m barrels of gasoline and diesel to the US this year, having extended a term contract with US petroleum product distributor Sunoco.
The company has not provided details of monthly volumes and tanker freight costs.
HD Hyundai Oilbank shipped 3.6m barrels of products to Hawaii for Sunoco in 2023, but this is its first deal for the mainland US.
The company has two plants with a combined crude processing capacity of 520,000 barrels per day.
Last month, it moved into biofuel by starting up a 130,000-tonne-per-year biodiesel refinery.
Hyundai Oilbank’s biggest shareholder is HD Hyundai Co Ltd at nearly 74%, with Saudi Aramco having 17%.
