About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the renewable fuels and petroleum refining and marketing businesses, as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP. CVR Energy subsidiaries serve as the general partner and own 37 percent of the common units of CVR Partners.

About Gunvor USA
Gunvor USA LLC is a wholly-owned indirect subsidiary of Gunvor Group Ltd, one of the world’s largest independent commodities trading houses by turnover. Gunvor Group creates logistics solutions that safely and efficiently move physical energy and bulk materials from where they are sourced to where they are demanded most. With strategic investments in industrial infrastructure—refineries, pipelines, storage, terminals, mining and upstream—Gunvor further generates sustainable value across the global supply chain for its customers. More information can be found at gunvor.group or @Gunvor

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This digitised transaction is a milestone for the oil trading industry. Due to the complexity of physical oil trades, the contracting process has traditionally been manual and intricate. The process is time consuming for both the issuing and receiving teams even when creating standard contracts directly from an energy trading risk management (ETRM) system. By moving to a fully digitalised process, VAKT customers gain the ability to confirm trades securely and easily, allowing them to focus on handling exceptions.

Due to the automated nature of the VAKT confirmation facility, the confirmations process can begin as soon as the trade is captured by both counterparties, ensuring that discrepancies between buyer and seller can be identified and resolved at T0, rather than days afterwards, thereby avoiding potentially costly errors down the processing chain. VAKT enhances security throughout the deal process.

Commenting on the development, VAKT CEO Etienne Amic said:

“Confirmations have been around for a long time in financial markets, in commodity derivatives and in simpler physical commodity markets such as Gas & Power. They require a careful articulation between a technology platform and a Master Trading Agreement. Being able to confirm waterborne oil trades on VAKT is a major milestone in the digitisation of physical commodity markets. Aside from their inherent efficiency, confirmations also create an incentive to normalise the reference data used by the industry, which is well underway at VAKT. We congratulate our clients for having the foresight to effect that change and we are confident that confirmations will become the dominant form of contracting in crude and refined products.”

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Energy Transfer LP (NYSE: ET) and Gunvor Group Ltd today announced that Gunvor Singapore Pte Ltd (Gunvor) has entered into an LNG Sale and Purchase Agreement with Energy Transfer LNG Export, LLC (Energy Transfer LNG), a subsidiary of Energy Transfer LP, related to its Lake Charles LNG project.

Under the SPA, Energy Transfer LNG will supply 2 million tonnes of LNG per annum to Gunvor on a free-on-board (FOB) basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge. The SPA is for a term of 20 years, and first deliveries are expected to commence as early as 2026. The SPAs will become fully effective upon the satisfaction of the conditions precedent, including Energy Transfer LNG taking final investment decision (FID).

“We are pleased to partner with Energy Transfer, which is a significant step in executing Gunvor’s overall strategy of uncovering and securing low-cost resources and implementing competitive and reliable deliveries to our LNG buyers. We look forward to a successful, long-term relationship with the Energy Transfer team as their project continues to progress,” said Kalpesh Patel, Co-Head of LNG Trading of Gunvor.

“Gunvor is a well-known participant in the LNG industry, and we are excited to have them as a customer,” said Tom Mason, President of Energy Transfer LNG. “Gunvor’s commitment to Lake Charles further evidences the progress we are making towards taking FID by year end.”

Energy Transfer is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint in all of the major U.S. production basins. Energy Transfer’s Lake Charles LNG export facility will be constructed on the existing brownfield regasification facility and will capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructure. Lake Charles LNG will also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus Shale.

About Gunvor

Gunvor is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. Gunvor has strategic investments in industrial infrastructure—refineries, pipelines, storage and terminals—that complement our core trading activity and generate sustainable value across the global supply chain for our customers. The company, which in 2021 generated US $135 billion in revenue on 240 million MT of volumes, is the leading independent global trader of liquefied natural gas (LNG).

About Energy Transfer

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in North America, with a strategic footprint in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 46.1 million common units of USA Compression Partners, LP (NYSE: USAC).

Forward Looking Statements

This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. In addition to the risks and uncertainties previously disclosed, the Partnership has also been, or may in the future be, impacted by new or heightened risks related to the COVID-19 pandemic, and we cannot predict the length and ultimate impact of those risks. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

The information contained in this press release is also available at energytransfer.com.

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Dow (NYSE: DOW) has finalized an agreement with Gunvor Petroleum Rotterdam, a wholly owned subsidiary of Gunvor Group Ltd (Gunvor) to purify pyrolysis oil feedstocks derived from plastic waste as part of last week’s announced actions to expand global capabilities for circular plastics. Gunvor will supply cracker-ready feedstock to Dow in Europe beginning in 2021, which will be used to produce circular plastics for customers. The purification process is necessary to ensure the pyrolysis oil feedstocks are of sufficient quality to produce new polymers.

“The agreement builds on Dow’s longstanding relationship with Gunvor and leverages the economies of scale needed to bring a circular economy for plastics another step closer,” said Diego Donoso, president of Dow’s Packaging and Specialty Plastics business. “In addition to our efforts to design for recyclability, we are adopting advanced recycling technologies that allow us to reclaim and reuse more waste plastics that would otherwise go to waste.”

Gunvor is an experienced processor of crude oils with a strong European presence, and brings expertise that can further improve the quality of pyrolysis oil feedstock. The agreement with Gunvor supports Dow’s advanced recycling agreements with Mura, Fuenix and New Hope and complements Dow’s intention to fast-track a market development scale purification unit in Terneuzen, the Netherlands, which will provide additional purification capacity. These collective efforts demonstrate continued progress toward meeting the Company’s announced sustainability targets to stop plastic waste, close the loop and protect the climate.

“By building on our longstanding relationship with Dow, Gunvor is implementing our near-term strategy to leverage the Group’s existing traditional asset base to advance Energy Transition objectives in a commercially viable manner,” said Gunvor Group CEO, Torbjörn Törnqvist. “Reducing waste and promoting sustainability is a priority.”

About Gunvor Group

Gunvor Group is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy and bulk materials from where they are sourced and stored to where they are demanded most. Gunvor has strategic investments in industrial infrastructure—refineries, pipelines, storage, and terminals—that complement core trading activities and generate sustainable value across the global supply chain for customers. In 2020, Gunvor reported turnover of US $50 billion on volumes of 191 million MT. Approximately 50% of the company’s trading consists of “transitional” commodities, including biofuels, natural gas and LNG. For more information, visit gunvor.group.

About Dow

Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

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Gunvor Group, one of the world’s largest physical energy commodities traders, has announced commitments in the areas of environment, social, and governance (ESG) targeting a 40% reduction in the company’s Scope 1 and 2 emissions by 2025. The commitments come as a part of Gunvor’s Sustainability Commitments 2021 document, which outlines how the company is navigating the Energy Transition.

For Gunvor, the two most significant activities that generate greenhouse gas emissions are the company’s industrial activities, specifically its European oil refineries, and its shipping fleet, both owned and chartered. Gunvor has committed to taking significant steps to reduce and/or compensate scope 1 and 2 emissions by 35% and 95%, respectively, by 2025.

Overall, Gunvor commits to both further improve the environmental impact of its current trading portfolio and invest in new sustainable commodities and businesses. The company determines that steps must be taken today to effectively manage, limit, and where possible eliminate emissions, given the role hydrocarbons play in the global energy mix today. At the same time, the commercial viability of sustainable sources of energy is being increasingly realized. As new commodities enter and grow, Gunvor will be a part of ensuring their safe and efficient movement to help balance markets.

Gunvor’s 2021 Sustainability Commitments charter lays out the details of the plan. Gunvor Group has already begun to undertake the following:

• Established dedicated vehicle, Nyera (Swedish: “New Era”), to formalize non-fossil fuel investments comprising a minimum of 10% of net equity that, with leverage, is expected to amount to a commitment of at least half-billion dollars (USD).
• Areas of Nyera’s focus include carbon capture and storage, renewable fuels, renewable power, and alternative fuels, including ammonia and hydrogen.
• Company’s major credit lines will continue to embed specific sustainability-linked goals with linked KPIs.
• For existing and new trading, dedicated programs will be established to reduce emissions and environmental impact, while taking into account human rights considerations, in line with our commitment to the UNGPs on Business & Human Rights.
• Emissions from refineries will continue to decrease compared to 2019, through efficiency projects and a switch to renewable and carbon neutral electricity.
• 100% of owned ships and 75% of time charter shipping fleet will be “eco-vessels” by 2022, with an overall 100% before 2027.
• Gunvor is in the process of finalizing its assessment of Scope 3 emissions, including those linked to the traded commodities and voyage charters; the company commits to follow the IMO improvement in efficiency targets of 40% by 2030, as per Gunvor’s membership in the Sea Cargo Charter.

Additional detail can be found in the four-page Sustainability Commitments 2021 document.

As a leading global physical commodities trading company, Gunvor Group is inherently equipped to be responsive to market changes, and the company’s success over the last 20 years is based on its ability to do so. While Gunvor has historically focused on the safe and efficient movement of crude oil and oil products, the company has been for more than a decade diversifying into new commodities and strategies in response to shifting markets and opportunities.

About 50 percent of Gunvor’s trading today consists of “transitional” commodities, based on the EU Taxonomy, which includes biofuels, natural gas, and liquefied natural gas (LNG). The company has also ceased physical coal trading and acquired biofuels plants. Gunvor was the first physical energy trader to launch a sustainability-linked financing, directly tying its performance in 15 different ESG criteria (including emissions reduction) to the interest rate of a facility.

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The proceeds of the Facility will refinance Gunvor USA’s existing borrowing base facility signed in October 2019, provide continued working capital financing for the Company’s merchant activities, and fund general corporate purposes.

“Gunvor USA continues to enjoy strong and steady support from our banking partners as we effectively navigate the challenging market environment,” said Chris Morran, CFO of Gunvor USA. “We are pleased to have attracted five new lenders to our facility, along with a substantial amount of oversubscription, which reflects the confidence in our business and strategy as Gunvor expands further into the North American market.”

The Facility is jointly lead arranged by Rabobank, which will also serve as Administrative Agent and Active Bookrunner, and ING Capital LLC, Natixis, New York Branch, and Société Générale as Joint Bookrunners and Joint Lead Arrangers in the transaction. The syndicate is further supported by a diverse group of 12 additional lenders, five of which are new to the Facility.

“Through the first nine months of 2020, the North American business has been a significant contributor to the Group,” said David Garza, Managing Director Gunvor USA. “The strong expansion of our banking partners emphasizes the company’s commitment to the Americas business.”

Zukerman Gore Brandeis & Grossman, LLP served as counsel to the lenders. McGuireWoods LLP served as counsel to the borrower.

About Gunvor USA LLC
Gunvor USA LLC is a wholly-owned indirect subsidiary of Gunvor Group Ltd, one of the world’s largest independent energy commodity traders in the world. Gunvor USA is a North American energy commodity merchant focused on the marketing and trading of physical refined products, crude oil, renewables, natural gas, and power. Gunvor USA is headquartered in Houston, Texas, with trading offices in Stamford, Connecticut and Calgary, Canada.

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For the interview at Energy Intelligence

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“We’re pleased to be working closely with our banking partners to find new areas of our business for sustainability-linked opportunities,” said Muriel Schwab, Chief Financial Officer, Gunvor Group. “And despite the recent market volatility and uncertainty, it is very promising to see such strong lender support for this approach, as the Ingolstadt facility was heavily over-subscribed.”

In 2018, Gunvor was the first energy commodities trading company to close a financing in which the interest rate was dependent on the company’s ability to meet sustainability criteria. Per the deal, Gunvor received a discount on its interest rate as sustainability targets were met; had Gunvor underperformed on the sustainability targets, a premium would have been added to the interest rate. That original facility has been renewed under the same terms.

Gunvor continues to view the long-term challenge for companies in the physical energy commodities trading sector to be effectively positioning themselves within the “energy transition.” In 2019, “transitional” commodities (i.e., natural gas, LNG and biofuels) comprised 45% of total trading activity (compared with “traditional” crude oil and oil products), an increase from 28% the year prior. Gunvor also acquired two biofuel plants, and committed to no longer physically trading coal, activities which ceased in 2018. The company is now actively measuring its CO2 footprint while devising a sustainability plan, of which financing is an important aspect. Gunvor is on target to substantially reduce its CO2 footprint in 2020, and will continue to work toward continuous reductions year-over-year.

Banks participating in the Ingolstadt Facility included:

Bookrunner, Mandated Lead Arranger and Sustainability Coordinator

• UniCredit Bank AG

Mandated Lead Arranger

• CA Indosuez (Switzerland) S.A
• DZ Bank AG Deutsche Zentralgenossenschaftsbank
• KfW IPEWX-Bank GmbH

Lead Arranger

• Industrial and Commercial Bank of China Ltd., London Branch

Arranger

• Bank of China Ltd, London Branch
• Commerzbank AG
• Erste Group Bank AG
• First Abu Dhabi Bank (PJSC)
• Raiffeisen Bank International AG

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“Gunvor’s North America operations have received strong, steady support from our banking partners, which continue to grow in number,” said Gunvor USA’s CFO Chris Morran. “We’re pleased with the continued confidence in Gunvor’s business and strategy as we expand further into the North American market.”

The Facility will support the company’s established operations in the United States as well as continued expansion into Canada. Gunvor USA LLC has two main offices, located in Houston (TX) and Stamford (CT), which are focused on trading refined products, crude oil and natural gas, as well as a rep office in Calgary, Canada.

The new Facility is jointly lead arranged by Rabobank, who will also serve as Administrative Agent and Active Bookrunner, and ABN Amro Capital USA LLC, ING Capital, LLC, Natixis, New York Branch, and Société Générale as Joint Bookrunners and Joint Lead Arrangers in the transaction. The syndicate also includes existing Lenders Credit Agricole Corporate and Investment Bank, Credit Suisse (Switzerland) Ltd., Industrial and Commercial Bank of China Limited, New York Branch, Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corporation and is complemented with three new Lenders: Bank of China, New York Branch, MUFG Bank, Ltd., and Oversea-Chinese Banking Corporation.

“Through the first nine months of 2019, the North American business has been a significant contributor to the Group,” said David Garza, Managing Director Gunvor USA. “An increase in our base and new banking partners are all part of our growing commitment to the Americas business.”

Gunvor USA LLC is a wholly-owned indirect subsidiary of Gunvor Group Ltd, one of the largest independent energy commodity traders in the world.

About Gunvor USA

Gunvor USA LLC is a wholly-owned indirect subsidiary of Gunvor Group Ltd, one of the world’s largest independent commodities trading houses by turnover. Gunvor Group creates logistics solutions that safely and efficiently move physical energy and bulk materials from where they are sourced to where they are demanded most. With strategic investments in industrial infrastructure—refineries, pipelines, storage, terminals, mining and upstream—Gunvor further generates sustainable value across the global supply chain for its customers. In 2018, Gunvor Group generated USD 87 billion in revenue on 185 million MT of turnover. The Group’s main trading offices are in Geneva, Singapore, Houston and London, with a network of more than 20 representative and other trading offices around the globe. More information can be found at gunvor.group or @Gunvor

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“Gunvor USA has added three new banking partners to the facility, further diversifying our support as we continue to grow throughout North America,” said Chris Morran, CFO and Treasurer of Gunvor USA. “We’re pleased to receive such strong support from the market to be significantly over-subscribed.”

The facility is the second renewal and expansion of Gunvor USA’s original borrowing base, which launched in 2016 at US $500 million. The 2018 facility launched at US $900 million and was scaled back from an oversubscription of US $1.1 billion.

The new facility is jointly lead arranged by Coöperatieve Rabobank U.A., New York Branch, who will also serve as Administrative Agent, ABN Amro Capital USA LLC, ING Capital LLC, Natixis, New York Branch, Société Générale and Credit Agricole Corporate and Investment Bank. The syndicate also includes Mizuho Bank, Ltd., Industrial and Commercial Bank of China Limited, New York Branch, Commonwealth Bank of Australia, Credit Suisse (Switzerland) Ltd. and Sumitomo Mitsui Banking Corporation.

“The growth of our North American financing mirrors the growth of our North American business and diversification of our trading across energy commodities,” said David Garza, President of Gunvor USA and Managing Director for its US operations. “Gunvor USA continues to execute its leg of Gunvor Group’s global strategy to fully realize a significant market presence in the Americas.”

Gunvor USA LLC is a wholly-owned indirect subsidiary of Gunvor Group Ltd., one of the largest independent energy commodity traders in the world.

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