Guam – The fuel oil contract between the Guam Power Authority and Hyundai will be signed tomorrow, Friday August 9th.
The 2-year Residual Fuel Oil (RFO) contract is worth approximately $360M annually. Based on historical consumption, GPA’s base load power plants will burn up approximately 3,000,000 barrels of oil a year.
The contract signing ceremony will be held at 10:30am in the GPA Board Conference Room at GPA’s Harmon Main Office.
“Our two-year contract is to commence on September 1, 2013 and to expire on August 31, 2015 with options to extend for an additional 3 years renewable annually with the mutual consent of both parties,” stated Joaquin C. Flores, P.E., GPA General Manager, “There are potential annual savings of approximately $20M with this new contract due to reduced premium fees. These savings are passed straight to our customers.”
According to their website Hyundai Corporation is a company based out of Korea with a global business network presence in over 40 countries and is traded on major stock exchanges in the world. Hyundai Corp. has been in the energy industry for over 30 years.
GPA expects its first shipment of RFO from Hyundai this September amounting to approximately 230,000 barrels of oil.
“As GPA is currently 100% reliable on imported fuel oil, GPA will continue to reinvest into our baseloads to deliver the most economical power possible to our customers,” remarked Flores, “Our new partnership with Hyundai Corp. and their history of quality performance fit well with the forward momentum of GPA to deliver quality power at an affordable price.”