In a statement issued on June 26, energy minister Charles Hendry said:  “Vopak, Greenergy and Shell have committed to investing a substantial amount in the site to develop it as a state-of-the-art import terminal. This includes paying for enhancements to the infrastructure that will keep the site viable for many years.   “As a result, the UK will have a new import terminal and its first deep water product jetty. This will allow low-cost high quality diesel to be imported, thereby enhancing  security of supply for London and the South East, and more affordable prices at the pumps.   “The construction and operation of the terminal should also create significant economic activity in the region over the next 2-3 years.  Vopak estimate that up to 50 direct jobs could be supported at the terminal. But, there will be much wider knock-on effects, with additional jobs available for contractors with skills in maintenance, security, engineering, truck driving and construction”.   “To continue operating as a refinery, some hundreds of millions would have needed to be invested in the plant, and unfortunately this has presented a huge barrier to potential new owners to invest because of the costs involved.   “The site is of exceptional value as an import terminal because of its location and amenities, so it is not surprising that it has had a higher sale value as an import terminal, which does not also require the extra investment a refinery would need”.  “ This is very sad news for the workers at Coryton, who will be extremely disappointed that PWC has been unable to find a buyer for the site as a refinery.      “We are doing everything we can to help these skilled people to find new posts, and are working with the Thurrock Council taskforce, local agencies and Jobcentre Plus to ensure they get the support they need at this difficult time”. Coryton assets to be sold to joint venture

Speaking yesterday, energy minister, Charles Hendry told representatives from Thurrock Council, Unite, local MPs and the administrator PWC that the government had “looked long and hard at whether or not state aid should be provided for Coryton” before concluding that “the existing overcapacity in the refining industry and declining demand for petrol means that it would not be sustainable.” Future options for the refinery were discussed along with the work the administrators are doing to secure a sustainable future for the plant. The minister reiterated government’s commitment to help those workers who are at risk of losing their jobs if the refinery closes. Charles Hendry said: “From the outset of this process, we have worked tirelessly with the administrator to find a way to secure a successful outcome for Coryton and to safeguard local jobs. “It is extremely disappointing that the administrators have not found a buyer for the refinery, despite their strong efforts.  Unfortunately considerable additional investment is needed to keep the refinery operating efficiently, and this has meant that potential bidders have been faced with high upfront investments to make in the order of some hundreds of millions. “UK refineries face tough competition from other refineries in Europe and increasingly in Asia, which means that profit margins are low and there is overcapacity in the sector.  If government did step in to help Coryton, this would be a short-term fix, and it could potentially lead to job losses at other refineries which would be at an unfair disadvantage.  “We realise this is a really worrying time for those who work at the refinery in Coryton, for their families and their communities more generally. We will be doing whatever we can to support people through this difficult period.” https://fuelondev.wpengine.com/2012/06/possible-buyer-for-coryton-says-unite/ https://fuelondev.wpengine.com/2012/05/no-deal-for-coryton/

Last week anti-trust regulators approved Mabanaft’s takeover of Bominflot.  The acquisition of this long established bunker trader makes Mabanaft one of the leading international bunker companies. The merger of Bominflot, which will now operate under the name Bomin, and Matrix Marine, Mabanaft’s subsidiary in the bunker business, is regarded by Mabanaft as an important step in an effort to combine the strengths of both companies on a sustainable and long-term basis. For Mabanaft, the acquisition is seen as a strategic step forward. As the bunker business deals with transactions involving physical oil, where logistics and customer loyalty play an important role, Mabanaft regards it as complementary to its strategic core competencies. Likewise, Bomin has now acquired critical mass on the ship bunker market, and, as a result, will now rank as one of the world’s largest bunker companies. The managing director of the Bomin Group is Peter Schreiber. Stefan Herde, managing director of Matrix Marine Holding, will also be a member of the management team of the Bomin Group. Bomin is an independent bunker trader and supplier, with more than 35 years of experience. Its business activities include the supply of bunker fuels and lubricants, cargo trading and ancillary services to the shipping industry. With a staff of more than 300 in 36 offices worldwide, Bomin is organised into three regions, The Americas, Europe/Africa and Far/Middle East. Meanwhile, Matrix Marine has been involved in the bunker business for almost 15 years. It has established itself as a leading independent supplier of bunker fuels and related services. Current locations include the US Gulf Coast, Singapore, Oman and India. www.mabanaft.com    www.matrixmarine.com    www.bomin.com Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Over the past three years, Scottish Fuels has increased its marine lubricants customer base by more than 600%. The increase is a result of re-introducing Castrol Marine Oil back into Scotland, says the company. Scottish Fuels became the sole distributor of Castrol Oil to the marine trade in Scotland, after the company was awarded the inshore marine contract in 2009. Since then, the company has seen the number of customers using Castrol Marine rise from 23 to 139. The steady customer growth has been attributed to Scottish Fuels’ 18-strong team which has been applauded in a recent Castrol report, for providing the highest standards of customer service compared to its other distributors. Andrew Salton, lubricants manager at Scottish Fuels, said: “At Scottish Fuels, we recognise that in the marine industry, the key to efficiency is reliability and ensuring we stock and effectively deliver the best products.”  www.scottishfuels.co.uk Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

GB Oils has completed a series of road shows for its Total dealer network where the challenges and opportunities for retailers were discussed and its commitment to supply dealers across the whole of the UK was welcomed. More than 110 retailers attended events in Birmingham, York and Windsor where Ramsay MacDonald, retail director for GB Oils, presented a case for the Gulf brand as part of the company’s growth strategy. Guest speaker, Brian Madderson, chairman of the Retail Motor Industry (RMI) Petrol, acknowledged the importance of working closely with an organisation that now accounts for around 25% of the dealer market’s 5500 sites. “The GB Oils strategy is good for the industry and good for the independent,” he said. “With further investment planned in products, infrastructure and growth, the Gulf brand has huge potential. Most importantly for dealers is a recognisable, reliable brand that provides an all-inclusive deal, offers a full range of products including premium grades, a convenience shops programme, and a comfort factor for the consumer. We face so many challenges, but now is the hour for the good dealer, backed by a supportive fuel supplier.” Mr MacDonald reported that 15 Total dealers had already agreed to convert to the Gulf brand and said that, following the road shows, the momentum was building and around 45 sites were expected to rebrand to Gulf by the end of the year. Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Petrol normally lost to delivery tankers equipped with stage 1B vapour recovery can now be retained says Petroman Environmental Services. “The Total Vapour Solutions system pays for itself, and begins to actually make money in a remarkably short time, simply by retaining petrol that would otherwise go back to the depot or refinery,” says Roger Bailey, sales manager of Petroman Environmental Services. “When a tank is ready to accept a new delivery, it is normally low on liquid and high on ullage filled with petrol vapour. When the tanker attaches its delivery hose to the fill pipe and beings delivery, that vapour is taken back into the tanker,” says Roger. By using the new system, a forecourt can recover up to four litres of petrol from this vapour for every 1000 litres sold. According to Petroman, this is equivalent to a saving of around £3.60.  www.petroman.ltd.uk Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Highlighted in the last newsletter by uSwitch, fuel poverty continues to throw up a range of statistics and opinions. Speaking about the recent fall seen in the 2010 fuel poverty statistics, Energy minister, Greg Barker was “encouraged by the fall in fuel poverty in the period to April 2011,” but added “there is no room for complacency. Fuel poverty remains a serious national problem and the coalition is absolutely committed to tackling it.” Fuel poverty statistics for 2010 published by The Department of Energy & Climate Change (DECC) show that the number of fuel poor households throughout the UK fell, year on year, from 5.5 million to 4.75 million. England’s figure fell to 3.5m in 2010, projections for 2012 indicate this will rise to around 3.9m this year. Professor John Hills of the London School of Economics and author of the Hills Fuel Poverty Review warns that the number of households in fuel poverty could rise to 9.2m or 43% of households. www.decc.gov.uk/hillsfuelpovertyreview Greg Barker added: “People can still get help with heating and insulation through Warm Front, and around two million households will get money off their energy bills this year through the Warm Home Discount scheme.” “Ambitious new policies” which include the Green Deal, “will help people pay for home improvements through savings on their energy bills, with extra financial help for the most vulnerable.” Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

A Shropshire homeowner may have what is thought to be one of the oldest domestic oil boilers still in operation in the UK.  Perhaps one of your customers can beat this 39-year old boiler? Marton Hayes, of Oswestry, contacted Worcester, Bosch Group after discovering that his WEC Firefly HD II had been heating his three-bedroom detached home since it was built in 1973. With an output of 60K BTU (17.5 kWh), the Firefly falls short of the much improved outputs of the latest generation of boilers, but Mr Hayes revealed that it remains in good working order despite its age.  “I think this is a fantastic achievement as the boiler is still performing excellently after 39 years of service,” he said. “I moved into the property with my wife and four children back in 1986 and, having continued to service the boiler annually, we have experienced no problems other than the odd replacement spare part.” Mr Hayes plans to replace his antique Firefly with a Worcester Bosch Greenstar boiler very soon.___________________________________________________Worcester, Bosch Group is offering a five-year guarantee on all Greenstar oil-fired boilers installed until 30th June.www.worcester-bosch.co.uk/5year___________________________________________________ Martyn Bridges, director of marketing and technical support at Worcester, Bosch Group added: “We were pleased to hear that Mr Hayes’ Firefly boiler has given him and his family such good service and are sure the replacement will prove to be just as reliable.”__________________________________________________If you know of a customer with an older working boiler, please send details to jane@fueloilnews.co.uk.__________________________________________________ Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Whether installing, lining or removing storage tanks or fuel polishing, Mechanical Cleansing Services (MCS) has established a reputation for its strict policy towards environmental responsibility. “Whenever possible, MCS uses recycled products both on site and in the office,” says managing director, Damon Roe.  “It is company policy to investigate new developments in environmentally-friendly products and methods of carrying out works.” MCS, which has more than three decades of experience in the fuel distribution industry, provides the following services:

Under the guidance of the Energy Institute’s (EI) Human & Organisational Factors Committee, a free online human factors awareness training course has been launched. Understanding how human factors influence performance is a key aspect in preventing and mitigating major accidents within industry, says the EI, and the new human factors awareness course is based on key topics identified by the UK’s Health & Safety Executive. The course is interactive, and each module takes around 30 minutes to complete, saving progress, and enabling users to return to the course at a later date. The training is aimed at building awareness of human factors and is intended for those whose work may impact safety, whether directly through their work, or through managing people. On completion of the course, users should be able to identify human factors issues and their potential impact on safety, and understand the range of approaches and solutions that are available to manage these issues. While the course was originally developed for use by those working in the energy sector, it can be applied across numerous other industrial sectors where safety is of prime importance, says the EI. The training course can be accessed at www.eihoflearning.org Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Scania’s Safe & Fuel Efficient Driver CPC training module has been accredited by Drive & Survive; the driver training arm of the Institute of Advanced Motorists.  The course is the only commercial vehicle manufacturer Driver CPC course to be awarded IAM-accredited status. Designed to fulfil the needs of truck, bus and coach drivers, Scania’s driver training module is a practical course, covering both on-road instruction and classroom training.  Key aspects include safe driving, urban driving, driving style and techniques, use of the engine and gearbox, and environmental considerations.  As an additional benefit, all drivers attending the course receive 12-months complimentary Affiliate Membership to the IAM. “From the very outset, Scania’s approach has been to go further than simply meet the demands of Driver CPC legislation – our overarching aim is to provide training which truly benefits both the driver and his or her employer,” says Scania’s driver training manager, Mark Agnew. IAM Drive & Survive chief executive, Simon Best, says: “As a body dedicated to excellence, we are proud to align ourselves with those promoting the highest standards of roadcraft.  Scania more than satisfied us that its Driver CPC course is capable of making a substantial contribution towards improving safety on our roads.” Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

“I believe that everyone gets at least one great opportunity in their business life, and I hope that my partners and I have just taken ours,” Nick Goodwin of Standard Fuel Oils told Fuel Oil News editor, Jane Hughes. One of the newest entrants into fuel oil distribution, Standard Fuel Oils is based in Merseyside. Twenty-eight year old Nick has oil in the blood. “My father, Mike Goodwin and Frank Hunter started Carlton Fuels. It was here that I chatted to customers, learnt about credit control and worked as a sales rep out on the road.” Together with Sab Hoctor, Nick ran Carlton’s Ellesmere Port depot until July 2006, when the company was acquired by GB Oils for 13.3 million euros. Nick’s father bought Carlton’s Knowsley site back when GB Oils vacated it some 18 months later. Operating as the Goodwin Corporation, Mike and eldest son, Michael, offer bunkering facilities as part of the Keyfuels and UK Fuels networks, and supply gas oil and AdBlue. The company’s commercial garage now services Standard’s tankers. Getting off the ground Standard Fuel Oils has already found much work in the immediate area. “We’re also surrounded by agricultural land with a multitude of growers and farmers requiring gas oil. Liverpool’s docks are close by and there are several engineering companies in the Merseyside area,” added Nick. The company delivers south to Crewe, north to Preston and into North Wales. We also have an online presence with Fuel Tool, Which Oil Supplier and the FuelLine. “Establishing a foothold in the domestic market will take a little longer,” says Nick. “Now our tankers are branded, our presence has been raised and we’re receiving more enquiries. We like the idea of delivering collectively to small groups.” The company runs two second hand tankers, an 8 and a 6-wheeler, sourced through Trucklocator from dealers in Yorkshire and Surrey. “Maintaining these tankers is expensive but helped by our access to garage facilities. I’d love to buy a new tanker but at the moment, I’m happy with what we’ve got. We’ll look again in a year or so’s time.   Support “Since going into business last October, we’ve had tremendous support. Initially, we had some doubts about the level of support we’d receive but we’re delighted to say this was unfounded. As a new entrant with no track record, it can be difficult to get credit so we were really pleased when so many suppliers showed faith in us. We would like to thank all our account managers at these suppliers, we’ve had such a lot of help over the past six months and it’s been most appreciated. We couldn’t have done this without them.”   An experienced team with oil in the blood Standard Fuel Oils is managed by a small team with a great deal of experience. Alongside Nick and Michael are Sab Hoctor, Paul Musgrave and Des McNamara. At just 22, Nick became national accounts manager for GB Oils, moving on acquisition to EMO Oil at Trafford Park, before spending five years at GB Oils’ Warrington headquarters. Sab, son of Speed’s Terry Hoctor now resident in Spain, spent six years at Carlton before joining Cooke Fuels and Brogan Fuels. Better known as Diesel Des, Des has worked at Shell Direct, Carlton and Caldo Oils. “With over 20 years of experience, Des is ideal for a new start up such as Standard. Whilst we can make 40 or 50 telephone calls from the office, on the road you see the whites of peoples’ eyes and can build up relationships,” said Nick. The newest member of the team is Paul, who joined County Oils in 2007 firstly in sales & marketing and latterly as business development manager. “We’re four people with a lot of contacts in the industry,” explained Nick. “We’ve spread the word about our arrival through good old-fashioned driving around and knocking on doors. Our first order for 3000 litres of diesel came from a haulier who happens to be a neighbour.” Whilst Sab looks after general management, Paul and Des concentrate on sales. Nick’s focus is on supplies, regulations and financial matters. “In reality, everyone pitches in to do everything,” added Nick. The team is complemented by drivers Mick Davies and Greg Goodwin, Nick’s younger brother who is happy to help out on the road in the short term. “Greg’s long term future will be as part of the management team,” added Nick. Cautious growth Nick, who left GB Oils on 17th August last, has since then worked many a 15-hour day. “In the first couple of months, if we got two jobs a day we thought it was great. Customers who bought from us in our first six weeks continue to deal with us. We want to take things at a steady pace so even if we could fill more vehicles, we don’t want to grow too fast.” Nick is still treading cautiously. “We draw out of Stanlow, buying only what we’ve sold. To minimise costs, the company designed its own website. “With a potential of a tanker drivers’ strike in the offing we’ve had additional people visit!”   A new challenge Running his own company has always been at the back of Nick’s mind. “I had a great education at GB Oils where I ran a department of 12 people selling 600 million litres a year but I needed a new challenge. GB Oils’ Paul Vian and Paul Williams put a lot of trust and faith in me and I’ve got much to thank them for. Whilst I could easily have stayed, the opportunity to go it alone fell into place and I took up the challenge. “We chose the name ‘Standard’ because it’s synonymous with oil,” said Nick. We’re a truly independent family business with a standard – offering a regular and loyal service. Service is most important in retaining customers – 9 out of 10 deliveries, are out today or next day. “We’ve no grand design about the future; our aim is be a company that people can trust. In the first couple of years, we will sustain, make a profit, if we can, and look to diversify – we’ve just started selling lubes and will be offering fuel cards. We do want to grow and don’t want to be a seasonal business. But, at the moment, we’re happy with what we’ve got and we’ll think very carefully about opportunities before proceeding. “I love the industry although there must be easier ways to make money…. That said, I love being in this business and I wouldn’t change it for the world. I just can’t see myself doing anything else.”

In the absence of any serious buyer interest, Coryton’s fate now looks sealed.   DECC is, however, keeping in ‘close contact’ with PwC, as the refinery’s administrators look at further options for its future. 100 possible investors and purchasers “We’ve had contact with over 100 possible investors and purchasers,” said Steven Pearson, joint administrator and partner with PwC. “We’ve been unable to reach a deal to date.  Prospective investors in the refinery faced a significant capital expenditure need, as well as a fragile market for refined oil products.” “I would like to thank the management, the employees, contractors, customers and suppliers for their support and solidarity during the past four months. Any closure process is likely to take up to three months, during which time discussions regarding a possible sale will continue.” For investors such as Gary Klesch and Igor Yusufov – both reputedly had an interest in Coryton – USA refineries with their cheaper feedstock, may be a much more attractive proposition. Earlier this month, refining margins in the US were reportedly averaging $18.32 per barrel against $6.45 in Europe.Calls for a level playing field Petroplus bought Coryton in 2007 for $1.4 billion; the facility produced around 10% of the UK fuels products. Saddened by the fact that the refinery looks “destined to cease refining operations shortly”, UKPIA said:  “Our thoughts are with the staff and contractors, many of whom have been employed at the site for several years, if not decades.” Speaking at the Platts Annual European Oil Storage Conference held in Amsterdam earlier this month, UKPIA’s director general, Chris Hunt said:   “If the governments of Member States are sincere in wanting a robust European refining industry that continues to deliver quality employment, energy supply resilience and feedstocks for chemical, bitumen and other key industries, they must be proactive in developing policy that creates a level playing field for this vital energy sector against its global competitors.”https://fuelondev.wpengine.com/2012/06/possible-buyer-for-coryton-says-unite/ Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php