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Brake’s Giant Walk

National road safety charity Brake is calling on drivers to slow down and watch out for children on foot or bike.

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Total – adaptation plan to secure LOR’s future

“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

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Level of illicit fuel is ‘alarming’

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  

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Inver Energy – syndicated bank deal

Inver Energy has negotiated major new funding facilities to fund the growth of its fuel import and marketing business in Ireland and the UK. The financing facilities include a €100m asset based lending facility and term debt and ancillary facilities of €15m. The asset based lending facility is the first of its kind in the Irish fuel sector and will fund Inver’s working capital requirements through the provision of a multi-currency revolving credit facility comprising letters of credit, inventory and receivables finance. The asset based lending syndicate comprises of Barclays, Bank of Ireland, BNP Paribas and Credit Suisse. Barclays and Bank of Ireland are mandated lead arrangers of the receivables and BNP Paribas is the mandated lead arranger for the inventory. The term debt and ancillary facilities are provided by the Bank of Ireland. Inver CEO Chris O’Callaghan said: “These new facilities will provide a robust, flexible and cost effective financing platform for Inver’s future development. We are very pleased with the support of a banking syndicate that combines the strength and expertise of major international banks with Bank of Ireland’s know how in the market.” FOR MORE NEWS FROM INVER ENERGY – SEE THE MARCH 2015 ISSUE – OUT SOON!

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Diesel fraud uncovered in Sunderland

A diesel laundering plant, capable of evading £1.4 million in duty, has been dismantled by HM Revenue and Customs (HMRC) in a commercial premises in Sunderland city-centre. The laundering plant, with the potential to produce 2.5 million litres of illicit fuel a year, and an illegal filling station were uncovered earlier this month.  HMRC officers, accompanied by Northumbria police, searched the city-centre property and discovered the filling station, where it is suspected fuel was being laundered and sold to the public as legitimate road fuel. Forecourt pumps, 3,200 litres of suspected laundered fuel, tanks and equipment were seized during the operation. Investigations are continuing. Pat Curtis, National Oils Co-ordinator, HMRC, said:  “We believe that fuel was stored, laundered and sold from this property, without any safety precautions, endangering any motorist buying fuel there. “Motorists may think buying illicit fuel is a bargain, but you have no idea what you’re getting, and you can be sure that you are lining the pockets of criminals. We ask anyone with information about this type of activity to contact us on the Customs’ Hotline on 0800 59 5000.” Follow HMRC on Twitter at @hmrcgovuk.

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Topaz Energy – €20m investment programme

Topaz has freed up resources to make a really substantial investment in the business says Emmet O’Neill The investment will transform the company’s retail network across the country says new CEO Emmet O’Neill. The company, which operates 330 forecourts with  around 40 in Northern Ireland, is hoping that  the agreed acquisition of the Esso business will be completed before the end of the year. In a further investment programme due next year the Topaz and ReStore brands across the Irish network of Esso forecourts will be extended. Topaz reported a pre-tax profit before exceptional items of €2.1m on a turnover of just less than €3bn. When exceptional items of €6.9m are taken into account (mostly associated with restructuring the group’s borrowings), pre-tax losses stood at €4.7m at the end of the period compared to losses of €13.6m for the equivalent period a year earlier.

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FPS EXPO – new products/services for the fuel oil distributor

Over half of the companies exhibiting at this year’s FPS EXPO in April will be introducing new products and services. Demand for space at FPS EXPO 2015, which takes place at the Harrogate International Centre on 22-23 April, has seen the event extend into another hall. FPS EXPO 2015 is the 35th year of the exhibition and the last event in Harrogate before the show moves to the new Liverpool Exhibition Centre next year.. Bulk fuel logistics companies, Brit European and Norbert Dentressangle Tankers are the latest companies to reserve a place and the event has secured its first tyre wholesaler, Treadsetters.  Other companies exhibiting for the first time include Applied Pumps, Cleansing Services, Paul Read Print, European Automation Projects, Samoa and KDC Contractors. Dawn Shakespeare, FPS marketing and events manager comments: “FPS EXPO is always extremely popular but 2015 looks set to be even more successful than our record-breaking 2014 event. “Having a first night exhibitor and visitor drinks reception on the opening night of FPS EXPO 2015 means that exhibitors and visitors can stay longer on the first day of the show and make the most of this fantastic opportunity, and individuals will now have a chance to network on an informal basis. “Visitors will benefit from exploring the extensive array of new and innovative products on display including tankers, testing and safety equipment, computer software and oil storage equipment plus all the necessary ancillary equipment – there’s much for visitors to the show to see,” added Dawn. “Visitors can compare the latest developments in tankers and oil distribution industry equipment, explore new technology, learn from industry experts, and talk with manufacturers — and each other — face to face.” For more information and to book your exhibition space or visitor ticket for FPS EXPO 2015, please view www.fpsshow.co.uk or contact Dawn Shakespeare on Tel: +44 (0) 1565 631 313 or Fax +44 (0) 1565 631 314 or email ds@fpsonline.co.uk  

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Oil heating cheaper than mains gas

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

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Burning oil? Call to make CO alarms law

Campaigners led by Plumb Center, Honeywell and the Katie Haines Memorial Trust, want to see carbon monoxide alarms in every home in England and Wales when using any carbon burning fuel.

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StocExpo 2015 Set to Break Records

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.

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A good Standard of tanker

Very impressed with the performance of its newest tanker, Knowsley-based Standard Fuel Oils has ordered two more.

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Which? reports on heating oil prices

With the price of heating oil at a four-year low, Which? has taken another look at the heating oil market; a market that has seen a 23% fall in price between December 2013 and December 2014. Fuel Oil News provided Price Totem information for the article in which OFTEC ‘suspects that prices will remain low at least until March, and may indeed continue to fall.’ The article also contains a table of comparative costs of different energies including renewables being used to heat a three-bedroom home. Getting the best heating oil price Figures from Fuel Oil News Price Totem (based on ordering 1,000 litres of kerosene heating oil) showed a drop from an average of 56p per litre in December 2013 to 43p in December 2014. Looking more closely at heating oil prices, Which? got a small sample of quotes in January from online heating oil companies delivering to a postcode in the north and the south of England. On average, the price quoted was 39p per litre when ordering 1,000 litres of standard kerosene with standard delivery and a regular tanker. Aimed at heating oil users, the guide highlights a number of ways to keep the costs of heating oil down. The Which? news story and heating oil guide can be found at http://www.which.co.uk/energy/creating-an-energy-saving-home/guides/heating-oil/

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Fuel poverty – distributors get together

Helping vulnerable heating oil users – Steve Davis, Midland Fuel Oils and Mark Askew with Tina Costello of Heart of England With the help of the Surviving Winter campaign, the Federation of Petroleum Suppliers (FPS) is assisting people in fuel poverty who use heating oil. Several donations have already been received from oil distributors across the Midlands where an agreement has been signed with the Heart of England Community Foundation to administer the fund, allocating awards to those most in need. “There are many older vulnerable people now living in fuel poverty across the country,” said the Heart of England Community Foundation.  “We’re delighted to work with the FPS to help support those pensioners in need as the temperature drops.” The fund’s current balance has around £12k available for grants, which includes £3k raised at last year’s FPS EXPO awards dinner. The FPS also gratefully acknowledge donations made by OFTEC in support of this initiative. There are 2.28m households in the UK living in fuel poverty.  The scheme is being trialled in the Midlands area which has fuel poverty rates of 15%.  Midlands oil distributors who have supported the fund, and whose customers will benefit, include Midland Fuel Oils, AID Fuels and Nolan Fuel Oils. Before undertaking a national roll out, the FPS felt it was vital to pilot the scheme across the West Midlands first.  It is hoped that as more oil distributors decide to support the scheme it can be spread across the whole country. FPS chief executive Mark Askew said: It’s impossible to help everyone, so initially funds will be made available to participating companies’ customers that are pensioners in receipt of pension credit, living in their own property and using fuel oil as their main source of heating. “Once a payment has been agreed to a household, the distributor that supplies that customer will be informed and receive a subsidy towards the next oil consignment. “It is expected that payments will be in the region of £100-150 per household and this will be deducted from the total bill for fuel and delivery. After that, the fuel is delivered in the normal manner and the remainder of the bill is paid by the householder. “Those companies who are participating in the scheme will also provide the entire charitable delivery at below the cost price meaning that the fuel is even less expensive.”www.oilsave.org.uk

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Greenergy – additional biodiesel production

Last week Greenergy acquired Harvest Biofuels’ biodiesel manufacturing facility at Seal Sands on Teesside. The acquisition of Harvest’s manufacturing assets gives Greenergy additional biodiesel production capacity with which to meet its own biofuel blending obligations under the UK’s Renewable Transport Fuel Obligation. Greenergy already owns and operates a waste based biodiesel facility on the east coast at Immingham.  Production from the Immingham facility is insufficient to meet the company’s growing biodiesel blending requirements in the UK and therefore these have been met partially through imported biodiesel. The addition of the Seal Sands facility, which also produces biodiesel from waste oils, will reduce reliance on these imports and allow Greenergy to meet more of its biodiesel blending obligations through its own production. As part of the agreement reached with Harvest: • Greenergy has taken on Harvest Biofuels’ biodiesel storage contract at Dordrecht in the Netherlands. • Harvest Energy will become an ex-rack customer of Greenergy for petrol and diesel for its customers in the south east of England, Teesside and in Scotland. “The acquisition of the Harvest biodiesel plant will help bring our own production and blend requirements into balance,” said Andrew Owens, Greenergy chief executive. “Most of the biodiesel that we blend into diesel in the UK will now be manufactured and quality assured in our own facilities. “There are great opportunities to improve further the performance of both manufacturing sites by making best use of feedstock, through technology transfer and the sharing of best practice.” www.greenergy.com

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Adler and Allan’s regional acquisition

Adler and Allan has acquired MTB Environmental Limited at Hamble-le-Rice, Southampton. The acquisition enables the environmental services provider to strengthen its regional presence on the south coast whilst allowing MTB – now known as Adler and Allan Hamble – to offer the full range of the Group’s services to its customer base. MTB has built an excellent reputation for tank cleaning, tankering and industrial services which complements that of Adler and Allan. In addition to this acquisition, Adler and Allan’s Glasgow department has moved to a new, larger facility in Uddington. The site’s location provides better access to local highways, helping Adler and Allan reduce its response time to incidents throughout the region. www.adlerandallan.co.uk

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FPS appoints new regional representative

Having been appointed  as the new FPS regional representative for Yorkshire and the North East of England, Janet Kettlewell has joined the FPS Council. Janet Kettlewell, who is operations manager at Ripon-based Kettlewell Fuels, a small independent family distributor formed in 1987, said:“  To be appointed as a regional representative is fantastic news. “Success in this industry is based on strong relationships with customers and colleagues, and I am keen to build great relationships with every oil distributor in Yorkshire and the North East.  I have a wealth of industry knowledge and experience as well as an understanding of this region. “Kettlewell Fuels is proud that it is one of the last remaining independent oil distributors in the area – we attribute this to the fact that we always go the extra mile for customers. “This commitment is something I will bring to my new role on the FPS Council. I will be helping and supporting all FPS members across the region, both on a personal and national level, ensuring they have an industry voice by representing their views and concerns at the quarterly Council meetings.  I look forward to making a big difference to the working lives of FPS members in this region.” To get in touch with Janet please email Janet.Kettlewell@kettlewellfuels.co.uk.