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News

Hertel helps Phillips 66 refinery in Humberside

Hertel staff celebrate six years of safety Six years of safe working have been achieved by maintenance and services provider, Hertel, at the Phillips 66 oil refinery in Humberside.  The period spans a total of 823,857 hours without an Occupational Safety and Health Association (OSHA) recordable incident. A ceremony was held onsite to mark the occasion. The company’s UK operations director, Nick Henderson, was joined by Phillips 66 senior management to present the team with certificates of achievement and a commemorative jacket. Nick commented: “Six years without a lost-time incident is a significant landmark both for Hertel and the client. It’s a demonstration of the commitment of staff to achieving a world-class performance through safe working practices.”www.hertel.com

News

New petroleum safety course

The National Skills Academy has launched a one day Petroleum Safety Training course. Aimed at contractors working at top tier COMAH petroleum sites, the course has been designed to supplement existing safety passport schemes such as Client Contractor National Safety Group (CCNSG). The first train the trainer event is being held on 3rd October. To book a place email industry@process.nsacademy.co.uk

News

Lewis Tankers ahead of business plan

Latest figures released by Lewis Tankers show a much improved financial performance for 2011. Revenues grew 53% over the previous year to £11 million, and there was a 90% improvement in gross margin, which resulted in a break even at operating profit (after interest) – a turnaround of £450,000 from 2010. Performance is now ahead of the original five year business plan prepared by directors in 2009. New business with Kuwait, World Fuel Services, Univar, and Brenntag, contributed to revenue growth, while the company has implemented a new operational control system, which has led to significant efficiencies. During the year the company restructured its management team to improve market focus by bringing together operational and commercial responsibilities. As with the previous two years, business started poorly in 2012 due to unseasonal good weather, which affected volumes in fuel distribution, especially in Scotland. However, trading in other sectors has remained strong and the company expects to hit its financial targets. Managing director Stewart MacDonald commented: “We’re pleased with our 2011 performance and are confident that we can continue to successfully develop the company. We continue to sign new business and our pipeline remains very strong for the balance of the year and beyond. With that in mind we are continuing to invest in new people and new vehicles. Staff numbers have grown from 108 to 120 and our tanker fleet has increased from 71 to 85. “Probably the biggest challenge now facing us is to determine our geographical strategy. Increasingly, we’re producing new business opportunities outside our traditional operating locations in the north of England and Scotland, and we need to find sensible solutions – probably by small-scale acquisitions.” http://www.lewistankers.co.uk/

News

Agency drivers – new guidance

The Fleet Safety Forum, a division of Brake, has published new guidance for fleet managers on managing agency drivers. The guidance, sponsored by Pertemps, provides advice on how to minimise the risks posed by using agency drivers. Research has shown that agency drivers are more prone to be involved in collisions, and with 42% of UK companies using temporary staff as drivers, it is a key safety issue. The new guidance covers effective partnership working with the driver agency, rigorous inductions on company safe driving policy and vehicle checks and subjecting agency drivers to the same spot checks, e.g. for drug and alcohol use, as company employed drivers. The guidance features a best practice case study of a fleet operator that has successfully mitigated the risks associated with agency drivers. The guidance is free to Fleet Safety Forum subscribers or £5 for non-subscribers. Email admin@brake.org.uk.

News

Fairbanks wins Shell tender

Fairbanks has been awarded a three-year wetstock management contract by Shell.Fairbankswill partner Tokheim as part of the contract, to deliver its services to more than 3,000 petrol stations, in 25 countries, across three continents.  A combination of hardware and software applications will provide automatic, real-time data to a team ofFairbanksanalysts. This will enable the delivery of detailed statistical inventory reconciliation (SIR) analysis of wetstock data to Shell. It will also help the company to benefit from improved wetstock protection and reduce the potential for fuel loss incidents. Fairbanks director, Steve Jones, commented: “We’re delighted that Shell has chosenFairbanks. We feel we provide something truly unique and valuable to the marketplace; a suite of remote wetstock management services combined with a dedicated team of analysts that add value and insight to our client’s data. “Shell employs a number of systems across its global networks and Fairbanksis well equipped to provide a service that works to meet Shell’s current and future business development ambitions. www.fairbanks.co.uk  

News

Back to basics – M2environmental rebranded as Malary

The company’s new flash evaporation plant is helping it to exceed stringent PFO legislation M2environmental has recently re-branded, reverting back to its original name of Malary. Alongside its core business of manufacturing M2 processed fuel oil, Malary also produces cost effective solutions for hazardous waste streams which historically have been sent to land fill or incineration. To accommodate an anticipated increase in chemists, business and equipment, a new laboratory is currently being built, which will more than double the existing work area. The laboratory was initially installed to provide seven day support to the company’s processed fuel oil production, but in the last six months it has branched out to provide external services. This includes the analysis of processed fuel oil, waste water, used oils, contaminated soils and hazardous waste. Following a £300,000 investment the company commissioned a new PFO evaporation plant earlier this year. By introducing an additional process, Malary can reduce water content in PFO to as little as 0.1%, whilst also improving fuel quality and increasing production capacity. The investment also included the building of a new control room and the commencement of an automation project. Operations director, Peter Oxley, commented: “We’re really pleased with the results which show that the time spent on R&D during 2011 has really paid off. This is a major step for the company, increasing production capacity by more than 25%, and moving us one step closer towards full automation.”

News

Alpeco updates Caldo Oils’ main depot

Recently installed – Caldo’s new Alpeco skid Alpeco has recently installed a new bottom loading skid at Caldo Oils’ St Helen’s depot. The company’s main depot was originally fitted with a top loading facility, which although was regularly serviced and maintained, was deemed too old. Managing director, Mike Scott was keen to replace the unit with an analogue installation: “I specifically elected to use an analogue system as I’m a traditionalist. I very much liked the cogs and wheels of our previous system, which lasted more than 30 years, so we’ve no reason to expect any less from the new installation.” Alpeco was awarded the contract to supply and install a brand new bottom-loading skid, equipped with four loading arms and mechanical meters configured for 900 lpm loading rates. Alpeco also provided a finance package through its business finance partner, CBF.  “Although we have a number of depots, we provide all our fuel supplies from the St Helens facility as this is our only wet depot. Alpeco came up with a very good deal through CBF and we believe that it’s much easier to use one source to design, manufacture, install and even finance the whole project,” Mike explained. “Alpeco also offers a very good back up service. This means a lot, as I can pick up the phone certain in the knowledge that they won’t present us with an invoice for something that should have been provided in the first place. Also you can actually speak to someone, which is always a great help.”

News

Hytek offers out of hours service

The convenient but safe and secure lock box Hytek is now offering out-of-hours collections. Simply let the company know that you’d like to pick up your order after hours and it will be stored in an outdoor lock box. The steel box is equipped with a high security combination padlock. The combination will be sent by the Hytek team, once it has received confirmation that the order will be picked up. The company’s new 2012/2013 catalogue is to be its biggest yet. The catalogue, which has an extra 14 pages and over 100 new products, boasts more than 12 different product sections. Grouping similar products together in these sections means that the new catalogue is an easy to navigate tool. Many products have remained the same price as last year and in some cases prices have fallen.www.hytekgb.com

Opinion

The Distributor Debate

Fuel Oil News Invites you to THE DISTRIBUTOR DEBATE On Wednesday 17th October at Manchester Central  This exciting event gives you the opportunity to:       – Take part in a frank and open discussion about the challenges and opportunities facing those operating in downstream fuel distribution – Listen to short factual presentations from leading industry speakers on the issues that concern every distributor every day, prices, supply, refining, logistics – Question Robin Lloyd, Mabanaft’s operations and biofuels manager on the gas oil changes in 2013 -With increasing pressure to adopt renewables and numbers of community buying schemes climbing – join in the debate on the future of oil heating. Many industry experts have committed to attending, while others have already started preparing their presentations.

News

A good infrastructure?

50 distribution terminals currently serve the UK inland market. An updated wall map will be sent to Fuel Oil News subscribers in early 2013 A dislocation of fuel product supply – affecting around 20% of regional requirements – followed the explosion at the Hertfordshire Oil Storage terminal at Buncefield in December 2005. Coming just a few years after fuel supplies were almost totally paralysed during fuel price protests in September 2000, these events prompted a heightened awareness of the importance of an infrastructure that is essential to the wider economy and, indeed, everyone’s daily life.    In government circles, this heightened awareness resulted in the setting up of the Downstream Oil Industry Forum. A forum charged with addressing the diverse challenges faced by the downstream sector, and, in particular, improving the resilience of both the physical infrastructure and the security and continuity of supply. Commissioned by the Department for Energy and Climate Change (DECC), three separate reports on the subject have been undertaken by WoodMackenzie, Deloitte, and Purvin & Gertz.  v    UKdownstream oil infrastructure v     Downstream oil – short term resilience and longer term security of supply v     Developments in the international downstream oil markets and their drivers: Implications for theUKrefining sector The above reports can be downloaded at www.decc.gov.ukThe refinery network Following the closures of Petroplus’ Teesside facility in 2009 and Coryton in June this year, the UK now has 7 operating refineries.  From the start of 2005 only the twoHumberrefineries and Fawley are under their original ownership. Since the last refinery – Murco’s Milford Haven – was commissioned in 1973, refinery numbers have progressively declined – from 18 with a total distillation capacity of 132 million metric tonnes (mt) to 7 with a total capacity of 77 million mt. In the 1970s/80s refineries invested in fluid catalytic cracking capacity to upgrade surplus fuel oil into petrol; then the chosen motoring fuel*.  The next two decades saw the introduction of more stringent specifications for clean fuels and a need for refineries to invest to ensure compliance. Prior to the recent Coryton shut-down, around two thirds of refinery production was delivered to the inland market with approximately 80 % of the crude oil feedstock being sourced from theUKand Norwegian sectors of theNorth Sea.Refinery challenges Poor profitability conditions in refining have been evident since 2008 and will continue, with no prospect of improvement expected, for another two to three years. *UK refineries now have excess petrol production capacity and a shortfall for middle distillate grades. Finding outlets for this petrol surplus will become an increasing challenge. UK and European refiners face increased competition from Asian and Middle Eastern export refineries.  From January 2013, they will also face additional costs associated with the requirement to comply with the EU Emissions Trading Scheme; additional costs not being borne by Asian and Middle Eastern competition.Bulk product movements – by pipeline Over half of all bulk movements are made on the oil company owned pipeline network.UKOP links the Thames and Mersey refineries, serving theMidlands (Kingsbury) and BuncefieldEsso Pipeline System serves West London (Heathrow), Purfleet (Gatwick), Avonmouth and theMidlands (Bromford) from FawleyMainline serves the Midlands (Kingsbury) andNorth West (Manchester) from Pembroke and Milford HavenFinaline services Buncefield (Heathrow) from Lindsey; currently restricted to Jet A-1 Two aviation systems feed Heathrow and Gatwick airports from Buncefield and Walton terminals Originally commissioned before World War II, the government pipeline system is primarily a strategic defence facility used to supply military JetA-1; it also supplies Heathrow (from Avonmouth by Q8 Petroleum) and Stansted airports. Third party commercial use is limited to Killingholme to Bramhall in south Manchester. Former road loading terminals at Blackmoor, Hallen and Aldermaston are no longer in third party commercial use.– by rail Rail movements account for 15% of bulk movements. 

News

Adler & Allan – Getting down to business

Adler & Allan is among Britain’s 100 fastest growing private equity backed companies. Henry Simpson and Mark Calvert receive their award. The company achieved 67th place The need to diversify is certainly a topic of conversation among fuel distributors – some have already ventured into third party haulage, whilst for others renewables are adding a new dimension.  When it comes to diversification and keeping one step ahead of the market, Adler & Allan (A&A) is a shining example. Starting out as a London-based coal and coke merchant in 1926, A&A became a fuel distributor over 40 years ago.  Aided by a series of strategic acquisitions, the company has spread its wings to encompass a range of associated activities including tank and forecourt services, spill response, mechanical and electrical maintenance, waste management, fuel polishing and testing. In the midst of developing further new services, Fuel Oil News editor, Jane Hughes spoke to group sales & marketing manager, Alan Scrafton, to learn more.  “Fuel polishing, vapour recovery refining, forecourt security products, Sockit filters, oxygen depletion in waterways and spray coat bund lining – these are just some of the most recent services added as a natural progression, and ensure that A&A continues to grow,” Alan explained.  Bolstered by acquisitions and some major contract wins A&A has consolidated its UK-wide presence.  Cross selling its new services to existing customers is further aiding the business’ organic growth.New appointments aid expansion Heading up the marine sales drive is Glyn Humphries.  Formerly with Briggs, Glyn is chairman of the UK Spill Association.  “Glyn’s brought a new impetus and vast experience to A&A, particularly in this sector,” said Alan.  “Working alongside a larger client base and the Maritime & Coastguard Agency, we also have a busy training schedule running tier 1 and 2 level exercises.”  Richard Tindell’s appointment as marine operations manager has bolstered A&A’s capability in the field. Richard has already been on active duty with recent spills and oxygen depletion incidents in lakes around the UK. Looking after the industrial and tank services section is general manager, Gary Wilson.  Ex Veolia,Garyhas particular expertise in managing large scale contracts in refineries and power stations.  New projects for this division include a trackside refuelling facility for locomotives carrying cargo at Doncaster, with prefabricated underground storage tanks linked to high speed refuelling pumps, and a petrol refuelling facility for marine craft with above ground tank storage. The acquisition of E&S Environmental in 2009 brought Nobby and Andrew Clarke into the team together with Dr Philip Nathan who runs A&A’s fuel laboratory.  “E&S has invested in the latest equipment to provide the same analysis results as a UKAS-accredited laboratory, which enables us to offer a very competitively priced and fast turnaround service,” Alan reported. As group safety systems advisor, Tony Gallagher has a customer-facing approach on HSE matters. Good at presenting to customers, he is upgrading policy across the business.  “Working with A&A’s forecourt businesses, E&S and AJ Bayliss, Tony is currently arranging customer H&S days;  being such a critical part of the business, we’re looking to fine tune this all the time,” explained Alan. “With SHEQ manager, Carol McCalla spearheading ISO accreditation across the Group, these appointments are enabling us to better fulfill critical contractual obligations.”A greater geographical spread A&A’s strength lies in being able to offer customers a significant breadth of capability across a wide geographical area.  A&A now has two bases in Scotland and recently appointed John Gilmour as operations manager working alongside, Amanda Merchant, area manager Scotland. Earlier this year A&A Scotland were highly commended by all stakeholders following response to an emergency callout when a tanker carrying 20,000 litres of aviation fuel crashed causing a large oil spill.  Local residents were evacuated and pollution control was carried out over four months under the watchful eye of the Scottish Environmental Protection Agency (SEPA). Selected from an initial field of 212 potential contractors, A&A has a 4-year contract as emergency environmental response contractor for Scottish Power – covering the Scottish Lowlands, North Wales and Lancashire. “Having secured a contract with Scottish Power, other new business has followed in Scotland,” said Alan.  A&A also has contracts with E.ON and Western Power Distribution and aims to win further energy utilities contracts. A&A has increased its presence around the country to deal with the growth of contracted business.  Most recent new depots include Droitwich, Doncaster and Tunbridge Wells. Depot manager at the company’s Manchester-based waste division is Peter Lohan.  “The north-west is a growth area and with a strong emphasis on sales, Peter has turned this business around; the base now employs 20 staff,” said Alan. The aforementioned staff are just a handful of A&A’s 320-strong team, which is headed up by managing director, Mark Calvert.  Mark, who joined the business 20 years ago, has alongside him commercial director, Henry Simpson, who leads the business development drive and operations director, Dave Whiskerd, both of whom joined in the late 90s.  Keith Potts joined the board in 2010 as compliance director to manage the group’s wide scope of SHEQ requirements.From coal to fuel distribution and a network of specialist services A&A still distributes fuel primarily from its new national operations centre at Barking (the company moved from Stratford in 2009 to make way for the Olympic redevelopment).  A&A offers a 24/7 emergency fuel service, particularly appreciated by the south east’s banking and data centres.  Located in eastLondon, A&A knows the area and can react quickly. Aiming towards a national network of specialist services, consistency of approach across an ever expanding range of services and geographical areas is increasingly vital.  “We have a major project underway to integrate internal systems using Goldmine Enterprise.  This will process all enquiries, quotes, invoices and sales reports; it’s a big investment that will take us to a higher level operationally,” explained Alan.  “It will enable us to be more precise in the way we handle contracts and, for me as a marketeer, it will give access to customer information ensuring better promotion of related services. Excellent communication and customer relationship management is important as the business continues to grow.” Much of A&A’s growth can be attributed to the exposure it received cleaning up the Buncefield oil terminal following the explosion in December 2005 which led to 20 tanks catching fire.  Appointed as principal contractor, A&A managed the uplift and disposal of over 27 million litres of contaminated waste and the safe cleaning of damaged infrastructure for demolition.  Working in a very hazardous and tightly monitored environment, the project took 28 months and 80,000 man hours to complete without sustaining a single lost time incident. With waste permits for oily waste, A&A is very active in fuel tank  decommissioning at facilities such as power stations, distilleries and defence sites.  Also working with emerging technologies, A&A provides spill prevention services to off and onshore wind farms.  “With hydraulic oil needed to power a wind turbine, there is a risk of contamination on land and at sea,” explained Alan.   Also offshore, A&A undertakes industrial cleaning on oil rigs. The vision of A&A’s board, coupled with the appointment of experienced and dynamic managers, has fuelled this UK-wide diversification and expansion.  “We’re getting lots of enquiries from overseas and we will go anywhere in the world (the company undertook projects in Sierra Leone, Nigeria, the Falklands and Norway in 2011),” said Alan.  Always one step ahead, it’s worth watching this space for A&A’s next move.

News

People are the passion at Craggs Energy

A family affair – Craggs Energy directors (l-r) June and Ralph Thornber and Chris and Heidi Bingham Individuals and personalities have been the driving force for Craggs Energy in carving out a space for themselves in the oil distribution business, writes Alex Porter Only in operation since October 2011, the company has focused on the individual and a new approach to serving customers from its picturesque base, sitting comfortably in the Yorkshire hills near Halifax. “We saw an opportunity to bring a different way of thinking to the industry,” said managing director Chris Bingham, who admits the business started without much market research, but instead relied on a gut instinct. Chris had no personal experience in oil, but set up Craggs Energy with his father-in-law, Ralph Thornber, who sold his own fuel distribution business to Shell in the late 1980s. The two saw a gap for a small company with a high quality of customer service. “A significant number of locals kept asking if we would launch a small family run distribution business as many such businesses had been absorbed into larger fuel concerns. By focusing on servicing the local communities, the business has been able to provide higher levels of service.” He added: “A major focus for the business is building a level of trust with its customers, which means always delivering a good service at a fair price whatever the weather. Someone is on the phone 24 hours a day – it’s occasionally even me! We employ good people with enthusiasm and passion. We give customers guarantees and then we deliver on them.”Quality promise There is a strong local focus. The three tankers and Land Rover, supplied by Tasca, have been likened to milk floats by customers thanks to the unique white design with a large image of the local area on the side. The name Craggs was also chosen to reflect their local surroundings. The company sponsors the local Young Farmers’ club rugby shirts, and Chris has been actively involved in fundraising for local causes. He recently completed three marathons in three days for charity, and in September has challenged himself to run ten marathons in ten days in aid of a local child. “I don’t want people to think of me, or the company, as bland and corporate,” he explained.

News

RNLI picks GB Oils

RNLI has an active fleet of 344 lifeboats operating around the UK The Royal National Lifeboat Institution (RNLI) has awarded a five-year national contract to GB Oils. For the next five years, GB Oils will be supplying the RNLI with both ultra low sulphur gas oil and marine gas oil to 61 of its sites, located across the UK. As part of the contract, the company’s marine team will handle RNLI fuel enquiries, orders and deliveries, and will provide one central point of contact for the designated sites 24/7. Andrew Woods, hovercraft operations manager at the RNLI, said: “The charity has an active fleet of 344 lifeboats that are used to provide 24 hour search and rescue services, so it’s really important that we have access to a reliable supply of fuel. Having experienced working with GB Oils previously, we were impressed with the company’s fast, efficient and dependable delivery service, and wide choice of quality marine fuels available.” Gary Byres, national sales manager at GB Oils, said: “Over the years, we’ve built up a wealth of knowledge and expertise in the marine industry, to complement our large range of quality marine fuels and exceptional standards of customer service. “We’re proud of the high quality services offered through our depots and no doubt this played a great part in us being awarded the national contract.”

News

Lewis Tankers wins new biofuels contract

PetroIneos Fuels has awarded a two-year contract to Lewis Tankers to transport biofuel from its bulk storage tanks in Grangemouth Docks to its fuel terminal at the Grangemouth refinery. The Yorkshire-based haulier has an operating base in Grangemouth and will be utilising dedicated tanks for the contract. PetroIneos imports bulk quantities of bioethanol into Grangemouth in its natural form and denatures it by mixing it with 1% gasoline. As part of the contract, Lewis Tankers will also transfer the gasoline used in the denaturing process from PetroIneos’ terminal to the storage tanks at the docks. See the September issue of Fuel Oil News for more news from the Grangemouth refinery. http://www.lewistankers.co.uk/

News

Stolt-Nielsen acquires Dagenham storage terminal

Stolt-Nielsen has announced the acquisition of a storage terminal at Dagenham from Norbert Dentressangle. Completion is subject to the transfer of licences and permits, and the receipt of necessary approvals to operate the facility.  The transaction is expected to close during the company’s fourth quarter of 2012.  The terminal consists of 195 tanks with a total of 134,000cbm. Walter Wattenbergh, president of Stolthaven Terminals, said: “This terminal, our first in the UK, joins Stolthaven’s growing global network of bulk-liquid storage facilities.  The Dagenham terminal gives us a foothold in the UK market and will provide added support to the Stolt Tankers’ inter-European coastal fleet.  Our initial plans include an immediate upgrade programme, with the decommissioning of several old tanks and the construction of new tanks.” http://www.stolt-nielsen.com/

News

Brobot’s new look in Corby

The new site in Corby’s Southern Gateway is the company’s largest ever development The retail arm of Brobot Petroleum has built a striking new development on a greenfield site in Corby’s Southern Gateway. The site, which opened in May, represents the company’s move from a forecourt business to convenience retailing.  It is two decades since Brobot built a site from scratch. Brobot’s biggest development to date includes a large Londis convenience store with a Costa express machine, a Bake & Bite food-to-go, and seating. The company is also in talks to fill the currently empty unit next door with a branded food retailer. Director Eddie Bright said: “Corby Southern Gateway is a big step forward in terms of concept. It’s a leap of faith into a different trading format – from a more traditional forecourt business to a full-on convenience business.” Brobot has enjoyed a successful partnership with Londis since June 2009. Eddie added: “The industry was changing so much and we needed more expertise in shops because the shop is now the driving force behind the business.”http://www.brobot.co.uk/

News

The RAC goes with Keyfuels

Keyfuels is working in partnership with the RAC to help manage its fleet more efficiently.  The RAC serves more than seven million customers nationwide.  With a large mixed fleet of more than 1600 vans and 45 10-tonne recovery trucks, it’s imperative to the profitability of the RAC that the fleet operates at maximum efficiency. Dave Matthews, Keyfuels account manager said: ”Thanks to the flexibility of Keyfuels’ solutions, we were able to provide additional services to meet with the requirements of the RAC delivering a comprehensive and robust fuel management package for all its vehicles.”   Gary Wrightson-Heyworth, operation service manager at RAC said: “Fuel represents one of our biggest expenditures. Keyfuels’ cards and services give us the ability to accurately control and monitor the cost of fuel and our fleet’s expenditure, helping us to plan our fuel needs and purchase at the right time to save money. “By utilising the Keyfuels network we are able to accurately distribute bunkered fuel nationwide and the extensive coverage provided by Keyfuels ensures that our drivers are never far from a participating site.”    www.keyfuels.co.uk