• Marine Fuel
• Sales & Marketing
• Customers & Brokers
• Sales Terms
• Other Fuels

Jet Fuel

We market jet fuel to U.S. and international commercial airlines at major airports in the United States through IPC (USA) Inc. ("IPC"), a company owned 50% each by us and Itochu Corporation. Our customers include PFTC, which is Japan Airlines' fuel marketing company, Hawaiian Airlines, Thai Airways, Lufthansa, Korean Airways and Southwest Airways. In 2005, IPC was the third largest supplier of jet fuel to commercial airlines at the Los Angeles International Airport, selling approximately 16.2% of the jet fuel supplied at the airport.

According to the Energy Information Administration, for the 6 months ended 31 May 2006, approximately 68 million gallons of jet fuel were sold in the United States each day. We currently supply an average of 700,000 gallons of jet fuel to our customers per day and we intend to expand our sales to commercial airlines in Phoenix, Miami, New York and Anchorage.

IPC (USA), Inc., or IPC, is a company owned 50.0% each by Chemoil and Itochu Corporation. In 2005, IPC was the third largest supplier of jet fuel to commercial airlines at the Los Angeles International Airport selling approximately 16.2% of the jet fuel supplied at the airport, and IPC intends to expand its sales to commercial airlines in Phoenix, Miami, New York and Anchorage.

IPC purchases jet fuel from refineries around the world as well as from local refineries and trading companies in the markets in which it operates. IPC manages the logistics of shipping jet fuel to airport facilities and the subsequent movement to either a commercial airline's local storage facility or directly to the airline's planes through third party tankers and pipelines.

Gasoline and Diesel Fuel

We market and sell unbranded gasoline and diesel fuel to independent retail stations and other customers, including delivery services and other industrial users through IPC (USA) Inc. ("IPC"), a company owned 50% each by us and Itochu Corporation. Based on information from the California Board of Equalization, we estimate that we currently supply 3% of the gasoline consumed in California.

According to the Energy Information Administration, for the 6 months ended 31 May 2006, approximately 67 million gallons of gasoline were sold each day in the Western United States, comprised of Alaska, Arizona, California, Hawaii, Nevada, Oregon and Washington. We currently supply an average of 750,000 gallons of gasoline to our customers per day and we intend to expand our operations to the Northeastern and Central United States.

IPC markets and sells unbranded gasoline and diesel fuel to independent retail stations and other customers, including delivery services and other industrial users. According to the Energy Information Administration, for the six months ended 31 May 2006, approximately 69 million gallons of gasoline were sold each day in the Western United States, comprised of Alaska, Arizona, California, Hawaii, Nevada, Oregon and Washington. IPC currently supplies an average of 1,244,000 gallons of gasoline to customers each day.

Based on information from the California Board of Equalization, we estimate that IPC currently supplies 3.0% of the retail gasoline consumed in California. IPC purchases gasoline and diesel fuel for delivery to its leased storage facilities in Carson, California.

IPC sells to more than 600 customers in the western part of the United States. IPC schedules delivery to its customers through trucks operated by third parties. IPC intends to expand its operations to the Northeastern and Central United States.