“LOR will be a smaller, but a higher converting and more profitable refinery,” says general manager Jacques Beuckelaers The Lindsey Oil Refinery (LOR) will be adapted, along with its logistics activities, to improve its efficiency and enhance its competitiveness by reducing its costs and cash breakeven. After having studied several options for the refinery in the past years, including a divestment, and encouraged by strong motivation of a competent management and workforce, Total has now defined an adaptation plan that will ensure a sustainable future for Lindsey Oil Refinery’s industrial and business activities within the Total European refining system. Up to 180 jobs are under threat; the government has said it ‘stands ready’  to work with Total to support those affected.“Total has developed a viable plan for the future of Lindsey Oil Refinery,” states general manager Jacques Beuckelaers. “The refinery operates in the most competitive market in Europe, which itself is facing strong international competition, rising costs, falling petrol and diesel consumption, and continued overcapacity. Modernisation programmes at Lindsey have yielded encouraging results over the last years. These efforts will be further consolidated by streamlining the refinery’s production capacity and organisation. With our solid industrial capabilities and our professional and dedicated teams, we will adapt the refinery to ensure its future: LOR will be a smaller, but a higher converting and more profitable refinery.” Throughout Europe, petrol and diesel consumption has continually decreased over the last decade. Although more than 10% of the European refining capacity has been closed in the same period, overcapacity remains and competition from overseas is growing. In this context, Lindsey Oil Refinery is facing lower domestic sales and lower utilisation rates which dangerously threaten its profitability.  www.total.uk

Only strong disciplinary action by the courts will act as a serious deterrent to those involved in the fuel laundering trade says the Freight Transport Association (FTA). The FTA has called for law enforcement authorities to make every effort in their attempts to shut down illegal fuel laundering operations following a report by the British-Irish Parliamentary Assembly (BIPA) that the number of border area fuel laundering plants and filling stations selling illicit fuel is ‘alarming’. Seamus Leheny, FTA’s policy & membership relations manager for Northern Ireland, said: “Every effort must be made to prosecute the owners of these fuel laundering sites who supply a minority of commercial goods vehicle operators in Northern Ireland, enabling them to use this saving to undercut the overwhelmingly compliant and legitimate operators across Northern Ireland.” In the Irish Republic the Irish Petrol Retailers Association (IPRA) has extended its quality assurance scheme for petrol retailers in counties Galway, Mayo and Roscommon. Designed to combat adulteration, David Blevings, IPRA spokesperson said:  “While the Irish authorities have had some success in curbing laundered fuel where agricultural fuel is illegally processed so it appears to be legitimate for consumer use, a new threat has appeared in the form of ‘petrol stretching’ where substances such as kerosene are used.  This has seen many motorists with damage to car engines.” FTA supports any joint enforcement by the authorities on either side of the border and suggests that additional means of prosecution should also be considered against fuel launderers or the owners of sites where this activity occurs such as environmental legislation enforced by the Northern Ireland Environment Fuel represents approximately 40% of operating costs for a haulage company, therefore the illegal fuel trade makes it harder for compliant operators, who purchase their fuel from legitimate sources, to make a sustainable profit, costing the Northern Ireland economy jobs and limiting investment and growth in the local logistics industry. The authorities must also pursue the consumers of laundered fuel, thus reducing demand for it and depriving the fuel launderers of their target market. www.ipra.ie www.fta.co.uk www.britishirish.org  

Jeremy Hawksley – welcome news for the industry and the 1.5 million UK households who use oil for heating Oil is now the cheapest of all the major heating fuels, costing £119 less per year to heat an average three-bedroom home than mains gas, the second cheapest option. According to the Sutherland Tables, a recognised independent source of data on comparative UK domestic heating prices, the price of kerosene has fallen by nearly 30% over the past two years and it is the first time the price has fallen lower than mains gas since 2010. Cost comparisons and projections Comparing the cost of heating the same average home with either LPG or electric storage heaters – the other main heating methods used by off gas grid households – and oil remains considerably cheaper, currently coming in at 47% less expensive than LPG and 37% cheaper than electricity. Most analysts agree that the price of oil is set to stay low for the foreseeable future and this is supported by DECC’s most recent Fossil Fuel Price Projections Report which even forecasts the potential for further falls over the next three years. Jeremy Hawksley, director general of OFTEC, said: “This is welcome news for the industry and the 1.5 million UK households who use oil for heating. With sustained low prices forecast, we envisage many households currently using LPG and electricity will look to switching to oil. We may even see some mains gas households changing to oil, particularly if they need to replace their boiler.” Pie in the sky The reduced price of oil is also expected to further dampen demand for the Government’s domestic RHI scheme. The Sutherland Tables show that the running cost of electricity driven Air Source Heat Pumps are significantly greater than those of a condensing oil boiler. Even after taking into account RHI payments, running costs are likely to remain considerably higher. Ofgem’s Domestic Renewable Heat Incentive Quarterly Report published in November 2014 shows that in the first nine months of operation, the domestic RHI scheme has only attracted 2,402 new (non-legacy) accredited installations and, when launched, DECC’s initial impact assessment stated that the RHI aimed to support around 750,000 renewable heat installations by 2020. This equates to approximately 10,800 new installations per month so, with the current rate of take up, this target is clearly ‘pie in the sky.’ A more pragmatic approach In light of this, OFTEC has again been calling for more pragmatic approaches to be taken to reduce heating costs and CO2 emissions. The trade body has written to all the major political parties proposing the introduction of a simple boiler scrappage and energy efficiency scheme which gives financial incentives to all oil and gas homes so they can upgrade to a condensing boiler and full home insulation.www.oftec.org.uk

Last year’s StocExpo broke all records, attracting over 2,940 visitors, making it the most successful show in its history. StocExpo 2015 returns on 17-19 March at the Ahoy, Rotterdam, bigger still with an expanded show floor and its strongest ever conference programme and speaker line-up. Nick Powell, StocExpo & Tank Storage Portfolio Event Director commented on the show’s progress: “The momentum behind the show is absolutely fantastic. This is the 11th edition of StocExpo and in that time it has grown beyond all recognition, becoming the most important bulk storage event anywhere in the world and a must attend event for Europe’s terminal operators, oil companies, traders and regulators. We don’t take this position lightly. That’s why we have worked hard ensuring we’ve the best speaker line-up possible and a packed exhibition hall of top industry suppliers.” Over 200 major international exhibitors from right across the tank storage supply chain have already signed-up for the event and others are coming on board fast. The current exhibitors include A. Hak Beheer B.V, Kanon Loading Equipment, Emerson Process Management, Endress+Hauser, J. de Jonge Flowsystems, FOAMGLAS Industry, Lightning Master Corporation, CTS Netherlands BV, Dantec, Fabricom and Honeywell Enraf. With many exhibitors using StocExpo’s international reach to launch new technologies or make major announcements, visitors to the show will be able to see the absolute latest developments in tank design, construction & maintenance, metering & measuring, pumps & valves, automation & loading equipment and inspection & certification services. In addition to the exhibition, 150 senior decision-makers are expected to attend the paid for, three-day conference which runs throughout StocExpo. Last year 100% of delegates rated the content as excellent, and the organisers have worked hard to maintain this standard, with a line-up of 25 industry experts confirmed to speak. They include Erik Klooster, Head of Government Affairs Netherlands at BP, Urs Beckmann, COO at TanQuid GmbH & Co. KG, Didier de Beamont, Commercial Director at VTTI and Onur Capan, Manager at Wood Mackenzie. The speakers will be discussing the region’s critical issues – everything from market analysis, latest trends and developments, business opportunities and finance through to innovative new technologies, plus latest thinking on terminal efficiency, operational health & safety and cost reduction. For more information on visiting the exhibition, booking as a delegate for the conference or becoming a media partner, please call +44 (0)20 8843 8800 or visit the event website: www.stocexpo.com.