Products and markets

The majority of Petroineos’ customers are based in Scotland, Northern Ireland and Northern England. BP, Grangemouth’s former owner, remains its biggest customer

Particularly strong in middle distillates, the refinery’s product range consists of petrol, diesel, aviation fuel, LPG, fuel oil, gas oil and heating oil. With the exception of fuel oil and LPG all products can be transported via the Grangemouth – Finnart Ocean Terminal pipeline.

Although very little fuel is now exported to the US, petrol continues to be supplied to markets in Europe, China and South Africa. With UK to UK refinery product transfers presently subject to uncompetitive additional tax measure, the company is asking the government to look at this as a matter of urgency.

Fostering good customer relationships

To better assist with product sales and marketing, Petroineos Fuels was established. “Customers like dealing direct with the refinery where manufacturing, sales, technical, quality and accounts operations are all together,” said Andrew Garner, commercial manager, PetroIneos refining.

Sales are based on Platts north west Europe prices plus or minus a premium. The company does not operate on the spot market with customers being on contract for a minimum four month term. Andrew explained: “I value longer term relationships to better serve my customers through thick and thin, so when it comes to allocation issues, all customers get a proportion of the cake.”

Positioned 110 miles from Grangemouth and 115 miles from Stanlow, the company’s rail fed Dalston terminal extends its inland reach. Supporting the Cumbrian community and the M6 supply corridor, the Dalston terminal offers an economical way of delivering fuel across thenorth westby both road and rail.

Grangemouth is the closest refinery to Northern Ireland and the province affords the company’s largest kerosene market; product is supplied into Belfast from the Finnart Ocean Terminal on Loch Long. In order to give Northern Ireland customers the same direct relationship that others enjoy in the UK, the company will be undertaking its own marketing in Northern Ireland from later this year.

FON asked if INEOS saw a future for kerosene as heating oil. “Absolutely!” said Andrew. “As one of the biggest suppliers of kerosene in the UK, we’re very committed to this excellent heating oil which is particularly suited for those off grid.”