Aramco Trading Company (ATC) has signed an agreement with Australian retailer United Petroleum for potential long-term fuel supply, product storage and other business opportunities, Trend reports with reference to Reuters.
Australia, which is already the largest fuel importer in the Asia Pacific, is a hot target market for fuel exporters as its domestic refining capacity has dwindled over the years.
The companies signed a non-binding memorandum of understanding (MOU) under which ATC intends to explore refined fuel sales to United Petroleum to meet fast-growing demand in Australia.
"Through this MOU, we hope to advance the vast opportunity for growth in United Petroleum's distribution networks across Australia and elsewhere," ATC President and Chief Executive Officer Ibrahim Al Buainain said in a statement.
The companies plan to explore product storage and logistics collaboration, while also assessing areas of potential cooperation both within and beyond the energy sector, ATC said.
Both ATC and United Petroleum did not comment on the volumes and duration of fuel supplies being discussed under the agreement.