Petroleum Oils Supply: LIQUEFIELD NATURAL GAS (LNG) CIF ONLY

SOFT CORPORATE OFFER (SCO)

Gngroup Supplies Sdn. Bhd. in collaboration with our refinery, manufactory, factory, supplier or seller, with full legal responsibility, hereby issue this Soft corporate Offer with given terms and conditions as stated in this offer to confirm our readiness to execute a sales and purchase agreement with the ability to supply the following commodity according to the terms and conditions stipulated in this soft corporate offer.

Commodity: LIQUEFIELD NATURAL GAS 5542-87 (LNG)
Loading Port: Rotterdam or Seller Option
Incoterms: CIF ASWP Only
Packing: Bulk Tanker / Seller’s Option
Minimum Order: 50,000 MT
Maximum Order: 500,000 MT
Commission: USD$ 10.00 Per MT
Shipment Guaranteed: 2% PB (Performance Bond)
Cargo Insurance: 110% by seller

INSPECTION:
For CIF
a) Inspection at loading port (seller port) by SGS for quality, quantity, fully at seller’s expense.
b) Final inspection at port of discharge (buyer port) by SGS for quality, quantity, fully at buyer’s expense.

BUYER’S COMMITMENT:
a) CIS (Customer Sheet Information)
b) ICPO + Scan Passport + Company Profile + BCL or POF

{BANKING PROCEDURES FOR CIF AWSP}
GUARANTEE PAYMENT IS REQUIRED FROM BUYERS:
MODE OF PAYMENMTS: SWIFT MT760 VIA SBLC FOR CIF

STEP 1
GNGROUP PROVIDES TO BUYERS:
a) Full / Soft Corporate Offer (FCO / SCO)
b) Template ICPO Format
c) Template CIS

STEP 2
BUYER PROVIDES TO GNGROUP:
a) Official ICPO, Address ICPO to: GNGROUP SUPPLIES SDN BHD, Attn to: MR. SYAPOL MA’AROF MOHD.
b) Copy of Buyer Scan Passport
c) Buyer’s Company Profile in PDF file
d) Latest BCL to GNGROUP SUPPLIES SDN BHD

STEP 3
GNGROUP PROVIDES TO BUYERS:
Draft SPA (Sales Purchases Agreement) For review, completion, or any correction.

STEP 4
The buyer sends the Draft SPA (Sales Purchases Agreement) back to Gngroup via Email

STEP 5
Gngroup provides to buyer “Proforma Invoice” and Buyer sign Proforma Invoice and email back to Gngroup.

STEP 6
BANK TO BANK PROCESS:
Buyer bank within 10 days issues SWIFT MT760 via SBLC to Seller Fiduciary Company nominated bank and sends SWIFT copy to seller. Final Payment, buyer release payment to seller bank after inspection at port / the coordinate point ship to ship, 100% payable for each shipment within 2 banking days upon the cargo passed SGS and receipt of all the relevant payment documents.

STEP 7
Seller issue Full POP and Shipping Documents, 2% PB Including:
a) Copy of Commercial Invoice.
b) Copy of Approval to License certificate.
c) Copy of Statement of Availability of the Product.
d) Copy of the Refinery Commitment to Produce the Product.
e) Copy of the Transnet Contract to Transport the Product to the Port.
f) Copy of the Port Storage Agreement.
g) Copy of the Charter Party Agreement(S) To Transport the Product to Discharge Port.
h) Dip test Authorization, Tank receipt and SGS report.
i) Copy of Vessel Questionnaire 88
j) Copy of Bill of Lading.
k) Certificate of Origin.
l) Allocation Transaction Passport Code Certificate [ATPCC]
m) The customs formalities, and test report to buyer/Bank.

STEP 8
The seller loads and inspects the product on board the vessel, delivering it to an agreed safe port. Upon arrival at the delivery port, the buyer conducts their own inspection to verify the quantity and quality of the product.

Subsequently, at the destination port, an inspection of the goods is carried out, and the buyer releases payment to the seller's bank within 2 banking days after inspection. This payment is 100% payable for each shipment once the cargo passes SGS and upon receipt of all necessary payment documents.

STEP 9
Product is transferred to buyer’s vessel / tank with All Shipping Documentation and Title is transferred to buyer.

STEP 10
Seller pays commissions to both the Seller Side and Buyer Side as follows:
a) 50% goes to the Seller Side (50% allocated to the Seller Side)
b) 50% goes to the Buyer Side (50% shared between the Buyer Mandate and Intermediaries)

The commission agreement will be incorporated into an Irrevocable Master Fee Protection Agreement (IMFPA), which must be signed by both the buyer and seller parties before issuing the Sales and Purchase Agreement (SPA).

STEP 11
The buyer's bank issues an SBLC or BG for a 12-month valid period for the upcoming shipment. GNGROUP provides a 2% PB to the buyer's bank to cover one month's shipment, held throughout the contract and debited during the final shipment. The seller delivers the product to the buyer's port according to the contract schedule, providing the DTA/ATV/Fresh SGS, maintaining this process until the completion of the 12-month shipment.

ABOUT LIQUEFIELD NATURAL GAS (LNG)

WHAT IS LNG:

LNG is Liquefied Natural Gas, methane (CH4). It is produced by cooling the usual commercial gas to the condensation temperature (-161.5 ° C), as a result of which it turns into a liquid. The volume of gas is reduced by a factor of 600 without the use of compression, only due to exposure to low temperatures, while at the same time purifying impurities, which makes it even cleaner and more efficient as a fuel for all types of applications.

LNG is produced in so-called liquefaction plants (plants). After that, in special cryogenic tanks capable of maintaining a low temperature inside the vessel for a long time (up to 70 days), it is transported to a storage station (for long-term storage) or to a local or system liquefied natural gas regasification station, where it turns into the usual commercial gas before being delivered to the consumer.

Liquefied natural gas, therefore, is not a separate type of fuel. Rather, it is a type of aggregate state of all the usual natural gas, the technology of its storage and transportation, which makes it possible to implement the so-called pipeless gasification, which has undeniable advantages over other types of fuel for both suppliers and consumers.

WHAT IS THE DIFFERENCE BETWEEN LNG AND LPG?

LNG – liquefied natural gas methane CH4, which is in a liquid state at a very low temperature of -161.5 ° C without compression. When released into a normal atmosphere, it quickly returns to its usual gaseous state, increasing in volume by 600 times and releasing cold. High density and low volume make it possible to profitably store and transport LNG over long distances in cryotanks, as well as use it as a fuel for high-power engines of continuous operation or long-distance logistics.

LPG – liquefied petroleum gas (C3N8With4N10 – propane-butane mixtures, SPBT), are a product of associated petroleum gas with a boiling point from 0 to -40 ° C, depending on the composition of the mixture, which makes it vulnerable to low winter temperatures. SPBT is stored in gas tanks or special containers under pressure up to 1.6 MPa and is widely used as fuel for transport and very rarely for individual farms (due to expensive infrastructure). LPG is heavier than air, spreads on the ground and is a highly flammable and explosive substance. It is ahead of diesel fuel and fuel oil, but inferior to natural gas in terms of efficiency and environmental friendliness as a fuel for boiler houses and transport.