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Tank-to-Vessel (TTV) in Oil & Gas Trading: How Terminal-Based Deliveries Work


Introduction

In international oil & gas shipping, not all deliveries involve direct loading from a refinery. Many legitimate transactions are executed through Tank-to-Vessel (TTV) operations, where petroleum products are loaded from a licensed storage terminal into a vessel.

This article explains what TTV means, how terminal-based oil deliveries work in practice, and why TTV is commonly used in compliant oil & gas transactions.

What Is Tank-to-Vessel (TTV)?

Tank-to-Vessel (TTV) refers to a delivery method where petroleum products are transferred directly from a storage tank at a licensed terminal into a vessel.

Under TTV:
  • The product is already stored at a recognized oil terminal or tank farm
  • Loading is conducted at the terminal’s jetty
  • Quantity and quality are verified during loading
TTV is widely used for refined products such as diesel, fuel oil, gasoline, and jet fuel.

Where Is TTV Commonly Used?

a) TTV transactions are typically executed at:
  • Independent oil terminals
  • Port storage facilities
  • Strategic petroleum hubs

b) These terminals operate under strict:
  • Port authority regulations
  • Safety and environmental standards
  • Documentation and audit requirements
This makes TTV a legitimate and efficient delivery method when properly structured.

How a TTV Transaction Works (Step by Step)
  1. A standard TTV oil transaction follows this flow:
  2. Buyer and seller sign the Sales & Purchase Agreement (SPA)
  3. Buyer issues LC (MT700) or SBLC/BG (MT760)
  4. Seller confirms terminal availability
  5. Authorization to Board (ATB) is issued for inspectors
  6. Product is loaded from terminal tank to vessel
  7. SGS (or equivalent) conducts inspection
  8. Marine and terminal documents are issued
  9. Payment is released according to SPA terms
This process ensures oil trade compliance and banking protection.
 
Key Documents in TTV Transactions
  • Typical documents involved in TTV include:
  • Sales & Purchase Agreement (SPA)
  • Tank Storage Receipt (TSR)
  • Tank Storage Agreement (TSA)
  • Authority to Board (ATB)
  • Certificate of Quality & Quantity (SGS)
  • Bill of Lading (B/L)
These documents confirm that the product is real, stored, inspected, and legally transferable.

Why Buyers Use TTV

1. Faster Execution
Products are already stored at terminals, reducing loading and logistics time.

2. Verified Storage
Terminal documentation provides assurance that the product exists.

3. Flexible Logistics
Buyers can nominate their own vessel once banking conditions are met.

4. Banking & Compliance Friendly
TTV transactions are acceptable to banks when documentation and procedures are followed.

Common Misunderstandings About TTV
  • ❌ TTV does not mean product is free for inspection without LC/SBLC
  • ❌ TTV does not eliminate banking compliance
  • ❌ TSR alone is not proof of ownership
  • ❌ Terminal access is never granted without authorization
Any TTV offer that bypasses these rules should be treated with caution.
 
TTV vs STS: A Quick Clarification
  • TTV: Tank → Vessel (terminal-based)
  • STS: Vessel → Vessel (offshore or port limits)
Both are legitimate, but each requires different approvals and documentation.

Conclusion

Tank-to-Vessel (TTV) is a standard and compliant delivery method in oil & gas trading when executed through licensed terminals and supported by proper banking instruments.

Understanding how TTV works helps buyers distinguish real terminal-based transactions from speculative or non-compliant offers.

👉 In the next article, we will explain Ship-to-Ship (STS) and Tank-to-Tank (TTT) transfers in oil trading.