Diesel fuel is a type of fuel derived from the distillation of oil that is heavier than gasoline but lighter than engine oil and heavy oil. Diesel fuel is generally separated into two fuels: diesel number 1 (D1) and diesel number 2 (D2). D1 is similar to kerosene and is lighter than D2. While D2 is sold most of the time, D1 is sold during winter in very cold climates because it doesn cloud or gel as easily as diesel number 2.
Despite rising awareness of environmental protection, D2 remains to be a key type of fuel for use in vehicles in many countries. In particular, demand for D2 has risen significantly in China over the past years as a consequence of increasing number of cars. In view of the country旧 sustained economic growth, D2 will continue to be undersupply in the China market, and the problem is even deteriorating as oil prices go up drastically lately.
Poised to meet this demand, GKP has made substantial progress in interlinking the supply chain. Early this year, the company reached agreements with several Russian refineries and middleman firms to collaborate on D2 trading. GKP now acts as their agent in the Asia Pacific, marketing D2 diesel fuel to importers, buying agents and consumers in the region. In addition, GKP has lately spotted new sources in the Middle East that have made commitments to perpetual supply of D2. Trial orders have been placed, and we expect that the first shipment will be made by November 2007.
GKP is keen on exploring new suppliers. We welcome any refineries, agents and brokers to negotiate for business cooperation. We have created a pricing and commission system that will benefit all parties involved in our China petroleum trading.