From Refinery to Terminal: How Global Fuel Supply Chains Work

When you purchase petroleum products like EN590 diesel, Jet Fuel A1, or LPG, the supply chain may seem complex. Where does the fuel come from? How does it get stored? What happens before you lift it?

This guide explains the end-to-end journey of fuel from refinery production to bonded terminal storage and finally to FOB or CIF delivery.

Step 1: Refinery Production

Petroleum refineries process crude oil into different refined products:

• Diesel (EN590, AGO, D6)
• Jet Fuel A1 / JP54
• Gasoline
• Base oils & lubricants

After refining, the products are allocated for different buyers, markets, and terminals.

Key refinery hubs:

• Europe → Shell, Total, BP refineries
• Middle East → ADNOC, Aramco refineries
• Asia → Singapore, South Korea, India
• Americas → Valero, ExxonMobil refineries

Step 2: Pipeline or Vessel Transport to Terminals

Once refined, products are transported to bonded storage terminals via:

• Pipelines (short distances)
• Barges or vessels (long distances)

These terminals act as logistics hubs where the product is stored before being sold or shipped further.

Major fuel terminals:

• Rotterdam, Netherlands – Europe’s main hub
• Fujairah, UAE – key Middle East & Africa hub
• Houston, USA – major export hub for Americas
• Jurong, Singapore – Southeast Asia’s gateway

Step 3: Bonded Terminal Storage

At the terminal, products are kept in bonded storage tanks. This is where:

• Tank Storage Receipt (TSR) is issued → proof product is physically available
• SGS Q&Q inspection is conducted → confirms quality & quantity
• POP (Proof of Product) can be verified → including refinery allocation letter, injection report

Without terminal storage, there is no real product to sell.

Step 4: Transaction Structuring

When a buyer wants to purchase:

1. Seller issues a Soft Corporate Offer (SCO)
2. Buyer responds with ICPO + Proof of Funds (SBLC/LC)
3. Seller issues draft SPA (Sales & Purchase Agreement)
4. After POF verification, POP documents are released
5. Buyer arranges FOB lifting or CIF delivery

Step 5: Delivery – FOB or CIF

• FOB (Free on Board)
  • Buyer sends a vessel to the terminal and takes responsibility after loading
• CIF (Cost, Insurance, Freight)
  • Seller arranges shipping to buyer’s destination port

Once SGS inspection confirms product quality, title transfer happens and final payment is made.

Why Understanding the Supply Chain Matters

✔ Helps buyers spot fake offers (no refinery → no terminal → no product)
✔ Ensures you know where the product physically exists
✔ Gives clarity on logistics timing and costs
✔ Helps structure deals correctly with clear terminal references

How Saurin Inc Simplifies the Supply Chain

We work only with refinery-backed allocations and bonded storage terminals. That means:

• ✅ Verified product availability at Rotterdam, Fujairah, Houston, and Jurong
• ✅ POP & SGS issued before title transfer
• ✅ Clean SPA process – no speculative brokers
• ✅ FOB or CIF structured to your needs

Need Verified Terminal Supply?

📧 sam@saurininc.com
📱 +1 706 587 6182 (WhatsApp)