| Renewable energy interest in FPS EXPO 2012 | 26 January 2012 |
The organisers of FPS EXPO, the oil distribution industry exhibition, are reporting a strong level of inquiries regarding the renewable energy sector.
FPS Marketing and Events Manager Vanessa Cook comments: "More of our members are looking at what alternative energy is available to offer their customers most of whom are off-gas customers and we are finding that FPS EXPO is becoming the stage for many renewable energy suppliers, associated component manufacturers and equipment suppliers to meet a new market of customers."
"There is a real buzz about the show already and with the added interest from the renewable energy sector it is going to make for a very exciting show this year."
FPS EXPO is staged on 18 and 19 April 2012 at Harrogate International Centre. The organisers have sold 89% of available space. Anyone requiring information on exhibiting at this industry-led event or attending the FPS EXPO 2012, Dinner and Golf Day, can contact Vanessa Cook on +44 (0) 1565 631313 or e-mail vc@fpsonline.co.uk or visit the exhibition website www.fpsshow.co.uk
| FPS and Petroplus | 25 January 2012 |
Commenting on the news that Coryton refiner Petroplus has filed for insolvency, Mark Askew Chief Executive of the Federation of Petroleum Suppliers, which represents the majority of oil distribution companies in Britain, said:
"The news is a disaster both for the distributors in the area, and by extension their customers. We are pleased that the administrators PwC have said that 'their immediate priority is to continue to operate the Coryton refinery and the Teesside storage business without disruption while the financial position is clarified and restructuring options are explored.' Our members who used Coryton are now putting alternative options in place whilst the situation is clarified by the administrators to use alternative terminals to collect fuel. Those FPS members who are affected are doing their utmost to help ensure customers are not affected but there is a potential that this situation will put pressure on other terminals including an extension in loading times and hence delivery times."
The FPS and its members who are affected in the area surrounding Coryton are monitoring the situation and the FPS would if deemed necessary call on the Government to intervene in an attempt to keep this strategic facility open and viable in order to secure both local jobs and prevent a significant impact on the local economy.
| Kill the planned fuel duty rise, says FPS | 16 November 2011 |
The Federation of Petroleum Suppliers is calling on the Government to scrap the fuel duty increase planned for January 2012.
FPS says that, going by the Government 's own statistics, increasing numbers of people served by FPS fuel oil distributor members are falling into fuel poverty, so any road fuel duty increase will worsen their situation.
FPS Chief Executive Mark Askew says: "Given the relatively small size of our market, the income would not be significant and the lowering of the end users' quality of life would not be worth the extra revenues raised. "
Mr Askew also points out that the increase could put yet more rural filling stations out of business. Some FPS members operate independent filling stations and provide a valuable service to country areas.
"These sites are already struggling to make ends meet and are no longer able to keep their storage tanks full. A further hike in the duty rate will undoubtedly result in further forecourt closures. In recent years, these closures have been running at almost 600 a year and there are now only around 8500 left open. The total number of forecourts now stands at less than there were in 1912 ! " says Mr Askew.
| Buy a poppy for your tanker | 25 October 2011 |
Fuel oil distributors can show company support for the Royal British Legion through buying poppies for tankers to mark a very special Remembrance Day: this year it will be observed at 11am on 11-11-11.
Minimum donation for a lorry poppy is £5, while an adhesive lorry poppy decal is £10 for a 23cm diameter and £15 for a 91cm diameter. These are easily peeled from coachwork after the day.
The Royal British Legion is the nation's leading Armed Forces charity, providing care and support to all members of the British Armed Forces past and present and their families. It is also the national Custodian of Remembrance.
“We are very happy for our members to show support for this very worthwhile cause,” said Vanessa Cook of FPS. Lorry poppies and decals can be can be bought through Colin Drew on 01622 795813 or email cdrew@britishlegion.org.uk
| FPS welcomes OFT findings on oil distribution industry | 18 October 2011 |
FPS (the Federation of Petroleum Suppliers) has given a broad welcome to the Office of Fair Trade study which found that the oil distribution industry does not need price regulation and that competition in the industry works well.
FPS Chief Executive Mark Askew said FPS had worked – and will continue to work – closely with OFT.
He said: “Already the FPS has launched a new Code of Conduct which aims to raise standards in the industry and encourage the implementation of best practice. The new code of conduct will ensure member companies make a commitment to maintain and improve the professionalism of the industry by adhering to the new FPS Code of Conduct.
“FPS believes its members compete fairly and have co-operated fully with the OFT throughout its study and will continue to work with the OFT on any further recommendations or enquiries they wish to undertake.”
The OFT study concluded that customer satisfaction with oil distributors was as high as 94 per cent and Mr Askew added: “The FPS and its members will work with the OFT to deal with the relatively small number of complaints around the difference on prices quoted and prices charged on delivery and will be ensuring that our members are complying with consumer law.”
The OFT welcomed the FPS initiative to encourage consumers to buy well ahead of delivery and price pressure points like bad weather and Christmas.
| NWF acquires Swan Petroleum, DCC finalises Pace deal | 5 October 2011 |
NWF Group plc, the agricultural and distribution specialist, is to buy Swan Petroleum. Swan’s 42 million litre business will increase NWF Fuels division’s volume by 10% and increase its penetration across the North West and North Wales.
Swan has traded for 30 years and operates from a storage depot at Babbinswood near Oswestry, and depots at Byley near Middlewich and Irlam with a fleet of 13 tankers. NWF says it will integrate the business into its existing 17 depot structure, delivering improvements in operating efficiency and will retain the Swan brand. For the year ended March 2011, Swan delivered revenue of £28.5 million and operating profits of £0.2 million. The £2.75 million sale is subject to final agreement.
Meanwhile, DCC Group’s acquisition of Pace Fuelcare has been completed for 23 million euros.
| Essar announces its UK top man | 29 September 2011 |
Essar Energy, which bought the Stanlow refinery from Shell in July, has named Volker Schultz as Chief Executive of Essar Oil UK.
Mr Schultz will join Essar from BP, where he has worked for 23 years, most recently as Head of Refining and Marketing Strategy.
Essar is currently analysing investments and improvements required at Stanlow over the short and medium term and Mr Schultz should join the company at the end of October. He said: “I am very much looking forward to joining Essar Energy and taking on a new challenge. There are many changes currently taking place in the global refining industry which are opening up exciting new opportunities.”
| Your chance to comment on health and safety regs | 28 June |
From 30 June, fuel oil distributors and others in the oil industries can contribute their views on how health and safety regulation affects their business.
The invitation to comment runs until 21 July and is part of the Red Tape Challenge, a Government drive to collect the views of businesses and people who have to deal with regulation every day.
Comments will provide the Government with a picture of how regulations are perceived and will help them decide which regulations should stay, which change, and which go entirely.
Geoffrey Podger, HSE Chief Executive, said: ”This is a genuine consultation which will capture the views of people who are affected by health and safety regulations. We want to hear from all those with an interest with the aim of simplifying health and safety and making it more effective and proportionate for the benefit of business and the workforce of Britain.”
To make your views known, go to http://www.redtapechallenge.cabinetoffice.gov.uk/home/index
| Total UK network sold | 27 Jun |
Total’s UK retail and fuel distribution business has been provisionally sold to Rontec Investments, a consortium comprising Snax 24, Investec and Grovepoint Capital. The sale should be finalized later this year.
The deal transfers ownership of 810 service stations to Rontec, but 254 will be simultaneously sold to Shell and operated under licence by Snax 24.
The Butler heating oil business – and its employees – will also transfer to Rontec.
Gerald Ronson, chairman of Snax 24, said: “This transaction marks Snax 24’s return to the fuel business in scale. We are delighted to be acquiring this already well-run business and believe that our independence will enable us to create further opportunities and drive innovation. We look forward to working with our new colleagues to deliver the best customer experience in the sector.”
Bernard Kantor, managing director of Investec, said: “We believe there is an excellent growth opportunity in UK service stations for an established independent operator such as Snax 24 and look forward to supporting our consortium partners in building a major new force in the industry.”
| RECORD-BREAKING FPS EXPO | 21 April 2011 |
FPS EXPO 2011 visitor numbers were up 17 per cent on the 2010 event and also beat the record numbers through the doors of the 2009 show. Visitors also saw a bumper crop of new products and services from the 115 exhibitors at the show. The EXPO covered 8,000 square metres and three halls of the Harrogate International Centre.
Among the 26 first-time exhibitors were Alpha Environmental, Dixon Group Europe, Varol Lubricants and Terence Barker Tanks.
Vanessa Cook, FPS EXPO 2011 Event Manager comments: “Visitors numbers were up on our 2010 and 2009 exhibition which shows confidence in the industry and in FPS EXPO 2011. It was also great to see so many new products and services on show for the first time. We are back in Harrogate in 2012 and we hope to make that an even better show, already we have sold over 50% of the exhibition space.”
Companies looking to exhibit at FPS EXPO 2012 on 18 and 19 April 2012 should contact the FPS EXPO team on Tel: +44 (0) 1565 631313 or e-mail: vc@fpsonline.co.uk
| FPS EXPO VISITOR NUMBERS UP | 14 April 2011 |
Almost 200 more people visited Day One of FPS EXPO 2011 in Harrogate yesterday than came to the 2010 event.
"We're delighted with the attendance and the mid-day figure for Day 2 is also showing a significant increase over the 2010 event," said an FPS spokesman. "Both visitors and exhibitors are very happy with the EXPO and all the indications are that very good business is being done."
FPS EXPO is the leading annual trade event and is organised by the Federation of Petroleum Suppliers.
| Shell and Essar in $1.3billion deal | 30 March 2011 |
Shell has agreed to sell its Stanlow refinery to Essar Oil UK in a deal Shell says is worth $1.3billion. The Shell announcement follows the initial Essar offer for Stanlow of USD350million, first reported on the Downstream website on 18 February.
The proposed sales covers oil products, chemicals manufacturing and access to what Shell describes as 'distribution terminal assets '. The deal also includes the commercial fuels, bulk fuels and local marine fuels businesses associated with the 270000 barrel per day refinery near Ellesmere Port. It does not include any of Shell’s UK retail sites, the Shell higher olefins plant and alcohols units, the lubricant oils blending plant, lubricants marketing business, Shell aviation operations at airports, non-local marine business, marine lubricants, commercial road transport marketing businesses, bitumen marketing business or the Shell technology centre at Thornton. The transaction should be completed later this year.
Shell Downstream Director, Mark Williams, said "The decision to sell Stanlow is part of our drive to concentrate our global manufacturing portfolio on larger assets and, on completion, means we will have reduced our global refining exposure through a combination of asset sales and closures by a total of 1.6 million barrels since 2002."
" This deal serves Stanlow's future well given Essar's commitment to investment and intent to increase site throughputs, " said Frank Willsdon, Stanlow General Manager. " It can only benefit staff, business partners and the local community and region. After our many years with Shell, we now look forward to a smooth transition and moving forward with Essar. "
In addition to the sale of the assets, the two companies will enter into an exclusive five year crude supply contract by Shell to Essar and into long-term agreements for the supply of products in the UK by Essar to Shell.
The Stanlow deal increases Essar refining capacity by two thirds.
lion in the first half of 2010.
| Valero to buy Chevron's Wales refinery and Texaco fuel stations | 8 March 2011 |
US oil group Valero Energy will buy Chevron’s chain of Texaco stations in Ireland and Britain and its Pembroke refinery for USD1.73 billion (1.25 billion euros).
Valero, the third-largest refiner in the US behind Exxon Mobil and ConocoPhillips, has long sought to buy a plant in Europe. In 2009, Lukoil of Russia beat it to the Total stake in a Dutch refinery.
The Texaco-branded 270-outlet network is the largest motor fuel dealer in Britain and the second-largest in Ireland, Valero said.
Pembroke can process up to 270,000 barrels per day and Chevron put it up for sale last year.
Valero hasn’t bought a refinery since its 2005 acquisition of Premcor, and has sold four refineries in that time, two on the US east coast. Pembroke exports half its gasoline output to New York and Florida, Valero said.
“After exiting refining in the US east coast last year, this acquisition provides an opportunity for our company to supply that market more competitively, when it’s economic to do so,” Valero Chief Executive Bill Klesse said.
Valero will pay $480 million for the plant and $250 million for the marketing and logistics assets in the region, including more than 1,000 Texaco-branded wholesale sites, stakes in four major product pipelines, and 11 terminals. It will also pay $1 billion for inventory.
Valero said the price for the plant was $185 per barrel, a discount of 60 per cent to Valero’s refining value.
The deal also includes a commercial and industrial fluids business, seven fuel terminals, stakes in four pipelines and eight aviation fuelling operations.
The deal is unlikely to go through before the third quarter of the year.
| Stanlow: Essar agrees UKP219million deal with Shell UK | 18 February 2011 |
Essar Energy has entered into an exclusivity agreement to buy the Shell UK refinery at Stanlow, Ellesmere Port for around UKP219million (USD350million). The deal should be signed by early April.
Naresh Nayyar, Essar Energy chief executive, said: We are very pleased to have reached an agreement regarding Stanlow, which is a high quality refinery in terms of its employees, its assets, its location and its customer base. Stanlow also fits very well with our strategy of providing options for the export of high quality products from our Vadinar refinery in India. After completion, we look forward to working closely with the refinery management and employees to develop the business and we will be investing in operational improvements to optimise the facility and enhance production.
Essar views Stanlow as a good buy on a number of fronts
- it produces clean bio petrol demanded by the UK and Europe
- there is scope to improve performance through investment. Stanlow is outputting only 75% of its capacity of 296,000 bpd.
- it has a skilled loyal workforce of around 960
- the agreed price is far lower that other recent refinery transactions on a per barrel basis. Stanlow equates to USD 1,182 per barrel compared to the BP Coryton sale to Petrolus at USD 8,140 and Milford Haven to Murco for USD 3,307, both in 2007.
Stanlow is more profitable than most refineries. Gross refining margins are USD2-3 per barrel higher than benchmark European margins, and gross profits were USD63million in the first half of 2010. The Stanlow deal increases Essar refining capacity by two thirds.
| DCC to buy Pace Fuelcare | 17 February 2011 |
DCC plc has announced it is to buy the British oil distribution business of Pace Fuelcare Ltd for 23.4million Sterling (27.7million euros). The acquisition is subject to clearance from the UK Office of Fair Trading.
In its financial year ended 26 September 2010 Pace sold 515 million litres of fuel to independent retail petrol stations and a broad range of commercial, industrial, agricultural and domestic customers. With approximately 240 employees, Pace operates from 20 locations across southern England and has a fleet of 86 road tankers.
| New FPS Chief Executive appointed | 8 February 2011 |
A new FPS Chief Executive has been appointed to take over when Susan Hancock retires in the summer. Mark Askew will start with FPS in April and so will be at the Exhibition in Harrogate to meet members. There will be a handover period to ensure that affairs run smoothly whilst Mark is getting up to speed with FPS activities.
Mark joins from the Nuclear Institute, where he is Executive Secretary. Prior to that, he was Technical Director of the Aluminium Federation so he brings a wealth of experience of trade associations and a technical background with him.
More details in the next issue of Downstream.
| After Shell and Essar, Valero and Chevron look set to do a deal | 28 January 2011 |
Speculation is growing that Chevron is in advanced talks to sell its 210,000 bpd refinery in Pembroke to Valero Energy.
Chevron has had the refinery up for sale for months after announcing it wanted to focus its downstream efforts on North America and Asian-Pacific markets. Valero said last autumn that it was looking to buy European plants.
The Chevron refinery runs mostly Russian and African heavy, lower-quality
crudes and it has plenty of catalytic cracking so that it can make about
100,000 bpd of gasoline, which could then be shipped to the American East coast, where demand for petrol is still high compared to our diesel-favouring market.
The Murphy refinery in nearby Milford Haven is also up for grabs and bids are due to be tendered in February. The Chevron Pembroke refinery supplies some 30 fuel distributors and 1100 independently-owned branded Texaco stations.
| Shell and Essar agree Stanlow deal | 20 January 2011 |
Reports are surfacing that Shell’s Stanlow refinery in Ellesmere Port is being sold to Essar Oil, owned by the billionaire Indian Ruia brothers, for around $350 million.
The deal between Shell and Mumbai-based Essar Oil is likely to be completed and announced next month.
Stanlow can produce up to 270,000 barrels per day and Essar will be able to ship crude oil refined at Vadinar, Gujarat to Stanlow and also process additional crude from the North Sea and West Africa.
Shell and Essar had been talking for some time but had failed to agree a price for the sale. Shell has been looking to sell around 15% of its refinery capacity in Europe and the Americas to save around $3 billion.
| FPS ISSUES DELIVERIES ADVICE TO PUBLIC | 7 December 2010 |
The Federation of Petroleum Suppliers has issued advice to people anxious about obtaining deliveries of heating oil during the cold weather crisis.
The advice comes in the wake of FPS success in securing a relaxation of drivers' working hours, enabling them to put in more time to reduce a deliveries backlog caused by the prolonged bad weather.
FPS advice is:
• Be patient – trust your regular supplier. Tell them when you will run out so that they can prioritise.
• Explain your circumstances honestly. Last winter, a number of customers who told their supplier they had run out actually had plenty of oil when the delivery tanker arrived. This makes things worse for those who have genuinely run out.
• Don’t try to bully or be rude to your supplier’s telesales staff. They are doing their best to help everyone get the oil they need.
FPS Chief Executive, Susan Hancock said: “The tanker drivers are really putting themselves out to supply as many people as possible in the difficult conditions, but we must be mindful of their safety. They deserve praise for their efforts that often go above the call of duty.”
She added that FPS had been campaigning to persuade people to order in good time for the winter bad weather and she issued a plea to those with a good supply in their tanks to hold off ordering more until the current situation eased.
FPS has set up a special area on its website www.fpsonline.co.uk for consumers wanting to locate their nearest heating oil suppliers.
| New rail supply line to Cardiff | 2 December 2010 |
Fuel wholesaler Mabanaft has modernised and re-opened the rail heads at HCB Cardiff Oil Storage terminal, enabling fuel to be rail fed directly from Immingham to Cardiff. More details in Downstream ebook.
| GREENERGY NON-COMMITTAL ON TOTAL UK NETWORK TAKEOVER | 24 September 2010 |
Reports suggest that Greenergy is eyeing up a buyout of the Total UK forecourt network, but Greenergy itself is non-committal.
Its spokeswoman, Alex Lewis, said: "We have made a number of significant infrastructure investments in the UK over the past few years with the construction of our biodiesel plant and our investments in fuel storage terminals at Plymouth, Thames, Teesside and now Cardiff. We will consider the opportunities arising from the sale of oil industry assets to further our expansion. We cannot comment on our position regarding specific assets."
The solid infrastructure behind the Total network could be one of the attractions for Greenergy. It includes tankers, terminals and the pipeline feed from the Total refinery at Lindsey, Lincolnshire to Buncefield storage and distribution centre in Hertfordshire.
| Greenergy name new CEO | 21 September 2010 |
Paul Lester is to become the new Chief Executive of Greenergy International on 1 October 2010. Current Chief Executive Andrew Owens will become Chairman with responsibility for business development.
Prior to joining Greenergy, Paul Lester was Chief Executive of support services company VT Group which was recently acquired by Babcock International Group. He has served as the Group Managing Director at Balfour Beatty and held a number of board or senior management positions at engineering and support services companies in both the UK and the US.
Greenergy's turnover has risen from UKP60 million in 2001 to UKP2.8 billion in 2010, supplying 7.9 billion litres of fuel annually.
| DRIVER CPC COURSES WIN AUDIT ACCOLADE | 17 August 2010 |
The Driver Certificate of Professional Competence (CPC) training courses, specifically run for oil distribution tanker drivers by the Federation of Petroleum Suppliers, have been handed glowing praise by auditors from the Joint Approvals Unit for Periodic Training.
More than 1,000 tanker drivers have undertaken CPC modules since the FPS launched the courses in 2009.
| MURCO TO EXIT REFINING | 28 July 2010 |
Murphy Oil Corporation has announced that its Board approved plans for exiting the company’s refining businesses. The refineries at Milford Haven, Wales; Superior, Wisconsin; and Meraux, Louisiana, along with the retail system in the United Kingdom will be placed for sale. Murco anticipates a transaction being completed in the first quarter of 2011.
Murco entered the UK market with enthusiasm, buying up 100+ Jet sites, around 60 Petrol Express sites and Total's 70% share in the jointly owned Milford refinery.
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