BDY Group signs 10-year LPG supply agreement with Vitol
Vitol to supply at least 400,000 tons of LPG annually to BDY Group
- News Service 13 JUNE 2022, 11:48AA
A 10-year liquefied petroleum gas (LPG) supply agreement was signed between Turkish investment company BDY Group and Vitol, one of the world's largest commodity trading companies.
According to information obtained by Anadolu Agency, Vitol will supply at least 400,000 tons of LPG annually to BDY Group under the agreement.
Vitol, which also owns Petrol Ofisi in Türkiye, uses Dortyol, a town in southeastern Türkiye, as a center for trade with neighboring countries.
On the other hand, besides the supply agreement, a storage agreement was also signed between the companies.
According to the agreement, Vitol will pay BDY Group on a ton basis for storage and export-based loading for 10 years. Thus, a net foreign currency inflow will be provided to Türkiye. The deal was signed on a "use or pay" condition.
Market experts consider LPG as an alternative fuel in case of possible interruptions in natural gas flow and supply problems.
LPG, which can be used in autogas and cooking as well as in heating in the world, also plays an important role in the Turkish energy market.
Consuming more than 4 million tons of LPG annually, Türkiye consumes the most autogas in the world.
- BDY Group
- supply agreement