Kuala lumpur: Hengyuan Refining Company Bhd (HRC) has reached a binding term sheet agreement with Shell Malaysia Trading Sdn Bhd (SMT) and Shell Timur Sdn Bhd (STSB) to renew their long-standing product offtake agreement for an additional 10 years.

According to BERNAMA News Agency, the renewal of the agreement is set to commence on January 1, 2027, and continue until December 31, 2036. The agreement will initially cover a term of five years, with the possibility of an additional five-year renewal, contingent on mutual agreement between the parties involved.

HRC stated that the term sheet outlines the principal commercial terms and establishes a framework for the negotiation and execution of the definitive product offtake agreement. The arrangement aims to ensure the continued placement of HRC's refinery products and the stability of its refinery operations, as mentioned in their stock exchange filing.