PETALING JAYA Hengyuan Refining
Co Bhd (HRC) has agreed to renew its product supply deal with Shell Malaysia for another 10 years, from Jan 1, 2027 to Dec 31, 2036.
In a filing with Bursa Malaysia, HRC said it had signed a binding term sheet with Shell Malaysia Trading Sdn Bhd and Shell Timur Sdn Bhd.
The company said the agreement will run for an initial five years (2027–2031), with the option to extend for another five years (2032–2036).
HRC said the term sheet establishes the commercial framework from which a definitive agreement will be negotiated and executed.
“The arrangement is expected to support the continued placement of HRC's refinery products and the stability of its refinery operations, it said.
HRC is principally engaged in the refining and manufacturing of petroleum products to meet required quality specifications, including gasoil, mogas (petrol U95/U97), jet A1 (jet fuel), liquefied petroleum gas, fuel oil components, sulphur and chemical feedstocks (such as light naphtha and propylene).
