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Valero enhances supply position in the south east 

Commercial customers in the south east of England will soon be benefiting from an enhanced supply position thanks to Valero’s long-term agreement with NuStar to supply fuel from their Grays terminal on the Thames.  From February 2018, Valero will expand its range of products to include gasoline, thereby providing a full suite of products to its customers at the Nustar Grays terminal.   “By moving to NuStar we’re consolidating our position on the Thames into a single location,” said Mike Lewis, Valero’s vice president product supply.  “And by signing a long-term agreement we’re reinforcing our commitment to our customers and to delivering a reliable service.   “Since moving into the Thames market in 2014 we’ve seen considerable growth, and we’re now building on that position. We will continue to show our flexibility by offering fixed, floating, spot and term pricing. This will be backed up by our experienced and dedicated sales team who can respond quickly and professionally to meet our customers’ needs.   “For our existing customers, the changeover will be seamless, while new customers can be guaranteed to receive a reliable service and quality product, helping them remain competitive in a dynamic market.”  www.valero.com   

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Oil pipeline repair could take up to four weeks 

Having acquired the 450,000 barrels per day Forties Pipeline System (FPS) on 31st October, INEOS discovered a small hairline crack in the pipe at Red Moss near Netherley, just south of Aberdeen during a recent routine inspection.  On Monday (18th) INEOS said that the pipeline was still undergoing assessment with there being a possible two to four weeks before it will be operational again.  In addition to carrying crude oil, FPS is also carries around a third of the UK’s offshore natural gas output.  A repair and oil spill response team was mobilised in early December after a very small amount of oil seepage was reported.  Measures to contain the seepage were put in place, no oil has been detected entering the environment and the pipe has been continuously monitored.   A 300-metre cordon was set-up and a small number of local residents were placed in temporary accommodation as precautionary measure.  The pipeline pressure was reduced while a full assessment of the situation was made.   Despite reducing the pressure, the crack extended, and as a consequence the Incident Management Team decided that a controlled shutdown of the pipeline was the safest way to proceed.  This will allow for a suitable repair method to be worked up based on the latest inspection data, while reducing the risk of injury to staff and the environment.  As always, safety remains our top priority and local residents, FPS users and other stakeholders are all being kept fully informed of the situation as it develops.   www.ineos.com          

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The young people behind the UK’s downstream sector 

A group of young oil industry ambassadors met with the All Party Parliamentary Group on the UK Oil Refining Sector to discuss the future of the industry In partnership with UKPIA, the All Party Parliamentary Group on the UK Oil Refining Sector welcomed a group of young oil industry ambassadors from across the country earlier this month.  The ambassadors were there to discuss the future of industry within the wider context of a new industrial strategy for the UK.   Looking ahead, the downstream oil sector is expected to continue powering the UK’s energy needs and mobility for many more years to come and will require the ingenuity, innovation and interest of the next generation of talent.  This event was a unique opportunity to hear from the young people behind the UK’s downstream oil sector and to increase awareness of future career opportunities to encourage more young talent to choose science, technology, engineering and maths (STEM) subjects to drive innovation and energise the UK’s future.   The event was chaired by the Martin Vickers MP, chair of the All Party Parliamentary Group on the UK Oil Refining Sector, and led by an expert panel made up of professor Isobel Pollock-Hulf OBE, visiting professor, engineering and design, University of Leeds and Tony Burke, assistant general secretary, Unite the Union.   “This Future of the Industry event represented an important opportunity to highlight the use of science, technology and innovation in our business and to explore the exciting careers that are on offer for young people in the UK’s downstream oil sector,” said Stephen Marcos Jones, UKPIA’s director-general.  “I would like to thank the Group and all parliamentarians in attendance for giving us this platform to discuss the talent and skills necessary to fulfil tomorrow’s needs.”   “This event presented an ideal and timely opportunity to hear from the young people behind the downstream oil industry,” added Martin Vickers.  “Equipping our young talent with the right skills for the future will be essential to meet current and future skills shortages in this important sector.”   www.ukpia.com    

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National Grid targets off-grid fuel poverty  

Last week National Grid announced that over 9,000 homes ranging from island cottages on Orkney to terraced houses in London are set to benefit from the first payments from its new £150m Warm Homes Fund.  The fund was set up using part of the proceeds from the sale of the company’s majority stake in its gas distribution business. It will fund the installation of affordable heating solutions in fuel poor households which don’t use mains gas as their primary source of heat.  The £150m from National Grid comes on top of the £589m already being returned to consumers on a voluntary basis by the company, bringing the total announced this year to £739m.  Following the first round of bidding, a total of £33m is now being awarded to 35 local authorities and social landlords representing partnerships across England, Scotland and Wales.  The money will be used to provide new heating systems for homes and will also fund programmes to help people with health conditions living in fuel poor households.  “Around 4.5 million households across the country are in fuel poverty,” said John Pettigrew, chief executive of National Grid.  “The aim of our new fund is threefold; to help to reduce bills, make fuel poor households warmer, and improve the health of people suffering the most severe levels of fuel poverty.  “The Warm Homes Fund was launched in late spring 2017 and provides financial support for the installation of affordable heating solutions in many thousands of fuel poor households which don’t use mains gas as their primary source of energy.”  The £150m is being awarded through three rounds of funding. Bids are now being invited for the second round of funding from local authorities and registered social landlords.    For more details and a list of the successful first round bidders go to www.affordablewarmthsolutions.org.uk   

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Holiday of a lifetime for Gulf winners 

Winners Ashleigh and Karl are congratulated by Mark Richardson of the Gulf Bolden Lane service station at South Shields When Karl Esther and his fiancée Ashleigh Riddell stopped to fill up at Gulf’s Boldon Lane Service Station in South Shields, little did they know that they were also driving into the holiday of a lifetime.  The happy couple will now embark on a Los Angeles Car-Crazy Adventure as the winners of Gulf’s Cars 3 forecourt promotion, which was launched nationwide over the summer in conjunction with Disney Pixar and its animated sequel film, Cars3. The competition ran in tandem with the theatrical opening of Cars 3, which follows the ongoing adventures of the legendary Lightning McQueen.  The prize includes flights, transfers, four nights at the 4-star Loews Santa Monica Beach Hotel, Cadillac car tour, LA go pass, speedway go-kart racing, a trip on the iconic Santa Monica ferris wheel, free entry to the Petersen Car Museum and spending money. Cars 3 banners featured on participating Gulf service stations across the UK throughout the promotion, with runners up prizes including 5 Disney Store VIP experiences with £200 to spend, plus hundreds of items of Cars 3 merchandise as spot prizes.   

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Joining in the festive fun 

Adrian Hill with Eric the Turkey and Erica Morris Lubricants is once again entertaining the ‘growing army of Eric the Turkey fans’ with an annual festive episode about the adventurous bird – and this year there’s another beak to feed….  Eric is the creation of automotive products manager Adrian Hill, who has composed catchy Christmas songs and videos about the escapee turkey for the past five festive seasons. His mission is to add some much-needed humour to the Christmas celebrations.  Eric’s latest adventure, Eric the Turkey’s Christmas Nativity, has caused a few feathers to flutter and already has a good following on YouTube – https://youtu.be/qPYgFRR6Jls – and Adrian’s family, friends and workmates love the video.  This year, Eric and his partner, Erica, go to the city to visit friends and get snowed in. They are forced to look for somewhere to stay and find a Premier Inn where a precious parcel – an egg – hatches on Christmas Eve. Baby Eric is born.  Adrian hit on the idea of an avian-themed nativity story soon after completing last year’s video and is already thinking about Eric’s next adventure.   “People like this year’s video because it’s a proper Christmas theme with a happy ending,” explained Adrian.  “It’s a joyous occasion because there is a new member of Eric’s family.  “What I am going to do after Christmas is run a competition to name the baby turkey and the prize will be a specially designed Eric the Turkey T-shirt.  In a break with tradition, Eric even went on a summer holiday with Adrian and his family this year, which was the theme of another video. Taking Eric abroad together with inflatable pink flamingos to make the ‘Eric’s Summer Party’ video caused more than a few strange looks at the beach.    

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Happy 40th anniversary

Fuel Oil News celebrated its 40th anniversary at the Chris Beetles Gallery at St James’s in London on Thursday 16th November.We were delighted to welcome readers and advertisers to the event, which also saw the launch of the new Fuel Oil News interactive storage & terminals map.

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The ‘perfect fit for Rix’

Now part of the Rix Petroleum Group, managing director Duncan Lambert beside a Stones Fuel Oils tanker A ‘much-loved family fuel company’ at Malton in North Yorkshire has been sold to Rix Petroleum.  Started by his father, Stones Fuel Oils has been owned and run by Geoff Stones for more than 50 years.  Now aged 74, Geoff has decided to retire. Geoff agreed to sell the business to Rix Petroleum because, as another local, family company, he was confident they would uphold the values which Stones Fuel Oils was built on. “I have run Stones Fuel Oils – initially with my father – for about fifty years now, and it seems the right time to step back and take life a little more steadily,” said Geoff. “After much thought, I have decided to sell the fuel oil side of the operation to Rix Petroleum, another family-owned and locally-based business. I am confident that they will maintain the high standard of customer service that we have aimed to give, and will offer competitive prices.” The move extends Rix Petroleum’s coverage further into North Yorkshire, enabling the company to service not just Malton and surrounding areas, but as far north as Whitby and west to Northallerton and Ripon. All Stones Fuel Oils staff, including tanker drivers and office workers, have been retained by Rix Petroleum, and another tanker is to be stationed at the depot, bringing the fleet to three. Duncan Lambert, managing director of Rix Petroleum, described Stones Fuel Oils as the ‘perfect fit’ for Rix as both businesses had much in common. “Stones Fuel Oils is a fantastic and well-run family business that has a very loyal customer base. It is a credit to Geoff and his father that it is held in such high regard. “Like Rix, Stones Fuel Oils has built its reputation on true family values of fairness and offering a quality, personal service. Those values form the core of Rix Petroleum too and we fully intend to honour them at our new Malton depot.”www.rix.co.uk

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Lobbying for a better off-grid deal

In the run-up to last month’s Budget, the Federation of Petroleum Suppliers (FPS) had been lobbying the government on various fronts for the off-grid heating oil industry.  Writing to Mr Hammond to better recognise the fuel and oil distribution sector, the FPS asked the chancellor to do more to assist both homeowners and members. “Although the Budget did produce some good news for households, it was not very exciting and it didn’t deliver any great help for many small business owners many of whom are our members,” said FPS president Jodie Allan. “The FPS represents 80% of heating oil distributors across the UK and our members operate at very low margins and so not raising fuel duty or vehicle excise duty rates for hauliers will assist our members,” added Jodie. “However, reducing fuel duty would have helped members further, and we also wanted to see additional measures to help the customers of our members – the 1.25 million mainly rural homeowners who are off grid. “Nothing was mentioned in the budget about a boiler scrappage scheme or help for off-grid homeowners. “We would like to see a boiler scrappage scheme for off-grid homes as there are efficient condensing boilers which can be installed either as a replacement or as first-time central heating for customers – and both options would reduce the carbon footprint of the home. “We’re disappointed that the BEIS has not included a strategy for oil boilers within the Clean Growth Strategy’s Boiler Plus; it deems the level of replacement oil boilers too low compared to that of gas. “On behalf of members, we will continue to lobby government to introduce a nationwide boiler replacement programme.  In comparison to decarbonising the gas network, decarbonising the oil heating sector should be relatively easy as it’s far smaller. “As a sign of how seriously we take this matter, the industry is already looking at the type of fuel that may replace oil one day as a low carbon option. www.fpsonline.co.uk

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Premier Group works with Shell on EV charging

Shell Recharge enables most electric vehicles to be charged in approximately 30 minutes.Credit: Ed Robinson/Shell In October, Shell announced the launch of its first electric vehicle charging points at three UK forecourts based in London, Surrey and Derby. The Shell Recharge service enables most electric vehicles to be charged in approximately 30 minutes. By the end of the year, the service will be offered to a further seven locations within Greater London and Reading with the construction division of the Premier Group being responsible for the enabling works for the installation of Shell’s electrical vehicle (EV) charging service in the UK. The Swansea-based Premier Group has been appointed as civils contractor for eight of the 10 trial sites. The company will co-ordinate all of the enabling works from pre-start meetings to final sign off for the installation of new e-charger units at these sites. The scope of works for the sites includes trenching and ducting to enable the units to be powered, tarmac services, as well as decorative and white lining works. In addition to Shell, Premier Group’s construction division works with many other major national brands including Esso, Rontec, BP, MRH, Asda and Tesco. “This is an extremely exciting project to be a part of as we see electrical vehicle charging really take off thanks to the Shell Recharge service, said Steve Evans, managing director of the construction division of The Premier Group, “The UK has ambitions to develop one of the best electric vehicle charging networks in the world and our work with Shell is helping to contribute to this.”www.premiergroup.org.ukwww.shell.co.uk

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Gulf Retail wins global award

Launched this week via Facebook – Gulf’s Big Christmas Giveaway has 100 items of Gulf branded merchandise on offer to lucky winners nationwide.  The initiative runs until the end of December Last month Certas Energy received the accolade of Gulf Oil Best Fuel Partner of the Year from Gulf Oil International at its annual conference in Dubai. The award recognises the work undertaken by Certas Energy to develop and grow its Gulf forecourt network in the UK. “I’m absolutely delighted that Gulf Retail has been recognised in this way,” said Certas Energy’s retail director, Ramsay MacDonald. “We continue to work hard to develop the Gulf brand in the UK and ensure that the Gulf proposition appeals to dealers of all sizes. The retail supply market is as competitive and challenging as we’ve ever seen it, with the oil majors now signing sites they would never have previously looked at and the super group dealers squeezing their own margins to drive volumes. “We’re working hard to differentiate our offer with the support of Gulf Oil International and build brand presence across the UK. Our most recent successes, three flagship sites in the north of England with a combined volume of 13 million litres, are now on stream and in full Gulf imagery. They demonstrate in no uncertain terms the strength of this historic forecourt brand, today and for the future.” “This award is so well deserved,” said Frank Rutten, vice president international of Gulf Oil International. “Certas Energy is achieving such great results in spite of the toughness and complexities of the market place. The UK team continues to invest in the Gulf brand and works tirelessly to provide UK dealers with a strong alternative to the traditional forecourt majors.” Gulf Oil International has fuel station representation in 25 countries across the world and sells lubricants in over 100 countries. Its ongoing investment to support the Gulf brand includes a global partnership with Manchester United.www.retail.gulfoil.co.uk

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Another first for INEOS

INEOS is to deliver the first ever US ethane from shale gas to China in 2019, using the world’s largest ethane carrier as part of a long-term supply agreement with China’s SP Chemicals.  The agreement includes construction of a new carrier ship, the largest ethane carrier ever built. “This is another world first for INEOS after importing shale gas to Europe in 2015,” said David Thompson, CEO of INEOS trading and shipping. “By bringing in US ethane from shale gas to China for the first time we are leading the way in shipping ethane worldwide to meet the demands of an expanding chemicals sector. “We’re excited to work with a client such as SP Chemicals and we look forward to delivering this historic project,” added David. In a £110 million investment project, INEOS now has two state of the art vessels to support its North Sea operations. “As natural gas continues to provide 84% of UK household heating, operations in the North Sea are of paramount importance and these two new vessels will provide essential operations support in the field,” said Mervyn Williams, supply chain manager INEOS Breagh. The ships, officially named Forties Sentinel and Sentinel Ranger, were built by Sentinel Marine. Among other news, last month INEOS acquired Lausanne-Sport, one of Switzerland’s most established football clubs, which is currently 6th in the Swiss super league. www.ineos.com

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INEOS completes Forties Pipeline acquisition from BP 

The Kinneil oil terminal and gas processing plant which is part of the acquisition from BP The completion of the deal, which also includes the Kinneil terminal, consolidates INEOS’ position as a top ten company in the North Sea and the largest privately– owned exploration and production business operating in the energy basin.   The FPS business is a natural fit for INEOS. Now with the responsibility for a strategic UK asset that delivers almost 40% of the UK’s North Sea oil and gas output, INEOS has further strengthened its long-term oil and gas activity.  The takeover was welcomed by Deirdre Michie, chief executive of Oil & Gas UK, who said:  “The Forties Pipeline, which transported 40% of the North Sea’s production last year, is a critical UKCS asset and its integration with Ineos’ assets at Grangemouth is an efficient solution that will help unlock new investment opportunities upstream.”   “This represents another very significant deal for INEOS,” said FPS CEO Andrew Gardner. The acquisition reunites North Sea and Grangemouth assets under INEOS ownership.  INEOS is now the only UK company with refinery and petrochemical assets directly integrated into the North Sea and this deal provides the platform to potential future offshore INEOS investments.”     The 235-mile pipeline system links 85 North Sea oil and gas assets to the UK mainland and the INEOS site in Grangemouth.  Ownership and operation of FPS, the Kinneil gas processing plant and oil terminal, the Dalmeny storage and export facility, sites at Aberdeen, the Forties Unity Platform and associated infrastructure has now transferred to INEOS FPS, together with approximately 300 personnel.  

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OHES acquired by Adler & Allan 

A&A is ‘a natural home for the business’ says OHES operations director, Dan Jones Adler & Allan (A&A) has acquired the specialist environmental consultancy, OHES Environmental (OHES).  OHES, which covers a broad range of specialist and technical areas, including environmental pollution claims, will continue to be led by its current management team as an autonomous business within the A&A Group and operate from its existing locations across the UK.   “OHES is a highly respected environmental consultancy that has built a fantastic breadth of client-focused services over the past 15 years,” said Henry Simpson, commercial director of A&A Group.  “Many of its consultants and specialist teams are already well known to us and we’re delighted to welcome them into the A&A Group, where together we can offer clients a greater range and depth of resources than ever before.”  “We’re delighted to have secured a new home for OHES, as part of a specialist environmental services group,” added Adam Shefras, managing director of hazardous goods and environmental industries at Pen Underwriting.   “We look forward to working with the team which will continue to provide a fully embedded spill response and environmental claims management service as part of Pen Underwriting’s bespoke high hazard insurance scheme, on an exclusive basis.”  “Having known and worked with the team at A&A Group for many years, as both supplier and customer, we’re excited by the great fit our businesses represent,” explained Dan Jones, operations director at OHES.   “OHES has a plan for strategic growth that will be well supported by being part of a wider environmental services group. A&A is a natural home for our business and we look forward to building on our success as part of the Group.”  “Pen Underwriting’s strategic ambition has always been to become a true virtual insurer,” said chief underwriting office, Tom Downey.  “This requires us to focus on, and invest heavily in, enhancing our core services and skills such as technical underwriting expertise, product governance, pricing and analytics.”  

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Tankers migrate south 

On their way south – the two new tankers When Simplytrac, a Kenya-based company, was looking for two new fuel bowsers they selected equipment from Tankquip and MechTronic.  Simplytrac, which is part of Jupiter Electrical and General Contractors of Nairobi, required the bowsers for the provision of fuel at the expanding port in Mombassa.  The vehicles not only incorporate all aspects of UK ADR and SLP best practice, they are also fitted with Mechtronic’s Visilevel and Stocksmart systems to help to combat issues of theft and tampering.   In addition to knowing where the vehicle is and how much fuel it contains, the company can ensure that product matches the required SG.   Simplytrac already manages fuel at the port and supplies to a number of larger road transport operators.   “We look forward to supplying further equipment to Simplytrac,” said Dave Stanley.  “Especially from our new partner Soteinpe, enabling them to expand their growing fuel management and wholesale fuel sales into the retail sector through Soteinpe’s Compact CIS system.”  www.tankquip.co.uk www.gruposoteinpe.es/en www.mechtronic.ltd.uk   

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Oiling longevity at Morris Lubricants 

Pentons’ directors Stephen (centre) and Gary Penton (right) with Morris Lubricants’ managing director Andrew Goddard and the Volvo truck which will soon be starting a new life in Africa A Volvo truck bought 16 years ago by an Oswestry-based haulage company is still going strong after clocking up 1.5 million miles 

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FTA at the Skills Show

Addressing the question, how can businesses attract new talent into the freight and logistics sector?, this week (16-18 November) the Freight Transport Association (FTA) will have ‘a significant presence’ at the Skills Show at Birmingham’s NEC. More than 70,000 young people are expected to attend this free to attend event – the UK’s largest skills and careers event for young people. “For many young people, logistics is an unknown topic, and they are unfamiliar with the scope and scale of the careers opportunities which the sector provides,” says Sally Gilson, head of skills campaigning. “By attending The Skills Show, and demonstrating the breadth of roles which young people can aspire to in freight and logistics, we are confident that we will encourage the next generation of skilled workers to keep our industry buoyant in years to come.” Currently (Nov 2017), the sector needs 52,000 LGV drivers across the country and FTA members report difficulties in recruiting skilled technicians. FTA will be working in partnership with Think Logistics, CILT, Novus Trust, Manpower, Volvo and DHL. “Logistics is changing, technology is now at the forefront of the sector,” continued Ms Gilson. “There are jobs to be investigated across all modes of FTA’s membership, ranging from drivers and engineers through to warehouse designers, project management and operations directors – and many more besides. Logistics is the sector keeping Britain trading.” www.theskillsshow.com