Market & Supply 22
Exolum was one of 14 companies to win an award at the second edition of the UK-Spain Business Awards, which recognise innovation, collaboration and entrepreneurship in fourteen Spanish and British companies.
The award was presented at a virtual gala hosted by the British Ambassador and attended by Britain’s Minister for Investment at the Department for International Trade, Gerry Grimstone, and Spain’s Secretary of State for Trade, Xiana Méndez.
The UK-Spain Business Awards, which are held in conjunction with the British Chamber of Commerce in Spain and Banco Santander, recognise companies whose business activity in Spain and the United Kingdom has boosted trade relations between the two countries. Specifically, Exolum won the award in the Growth in the UK category for the significant expansion the company undertook last year in the UK.
At the end of 2020, the company added 15 new liquid product storage terminals to its portfolio, 11 of which are located in the UK. With this acquisition, Exolum has consolidated its presence in the UK market and initiated operations in the rest of Europe.
In addition, Exolum has expanded its service offering to include the storage, management and transportation of new liquid products, particularly chemical products, and has begun to operate in new sectors, such as eco-fuels, the circular economy and the development of new energy vectors.
Exolum currently employs more than 2,300 professionals and operates in eight countries, where it manages a pipeline network of over 6,000 kilometres, 68 storage terminals and 45 airport facilities with a total storage capacity of more than 11 million cubic metres.
The Grangemouth firm, Rix Petroluem (Scotland) Ltd has teamed up with a campaign launched by an ex-Scotland rugby star to help tackle motor neuron disease (MND).
The charity was set up by Doddie Weir OBE and close friends after the former international player was diagnosed with MND in 2017. The organisation has two main objectives: to raise funds to invest in MND, and to support people living with the disease and help them live as full a life as possible.
Gail Fawcett, Rix Petroleum business unit manager at its Grangemouth depot, is confident the company can support the organisation by raising a significant sum. She said: “My Name’5 Doddie is such a worthwhile cause, we want to do them proud.
“We’re planning a lot of activities that we can do despite Covid. We’re determined that won’t hamper our efforts.”
Mark Cessford, general manager at the fuel firm’s Montrose base, said: “Doddie Weir OBE is a national hero in Scotland and a household name to rugby fans across the world.
“So, when he announced he had been diagnosed with MND, it really brought home that developing this awful condition can happen to anyone. As someone who has followed his career, I admire the way he has brought as much grit and determination to his personal fight and to the My Name’5 Doddie Foundation as he did his rugby.
“Naturally then, when it became time for us to choose a charity to support, this was top of our list.”
To help the charity, Rix Petroleum has created point-of-sale material for their depots to inform customers about its work and has appealed for donations.
The company has also taken its support of the foundation on the road by displaying branding on the back of a tanker to help spread its message. Rix Petroleum is also putting together a range of Covid-friendly fundraising events and aim to raise money at any agricultural shows that go ahead in 2021.
Join Fuel Oil News at StocExpo’s The Terminal of Tomorrow digital conference, taking place 16-17 March 2021 from 10.00 – 17:00 CET each day.
As a StocExpo media partner, we are offering our subscribers complimentary tickets (usually €250+VAT) to the two-day online event.
Covering topics on hydrogen, energy storage, and renewable diesel, key speakers from Vopak, EASE & Oiltanking will give their firsthand experiences of how they plan to diversify beyond hydrocarbons. Speakers will provide actionable insights and plenty of fresh thinking. Hear from the experts, including Khalid Saleh
sustainability manager, Vopak, Anneli Teelahk, senior policy officer, EASE and Jorge Lanza, CEO, Exolum (fomerly CLH Group).
Click here to receive your complimentary pass and see the full programme here.
Environmental risk reduction specialist, Adler and Allan, is announcing changes to its senior leadership team effective 1 March 2021. This supports its ambitious growth plans as the UK’s leading provider of environmental risk reduction services, covering both emergency response and scheduled maintenance across a wide range of critical asset infrastructure and contaminants.
Henrik Pedersen will become group managing director, having previously held the role of group commercial director. He will provide a clear focus on commercial growth based upon the depth of the group’s technical expertise and track record of exceptional service to its customers.
Mike Willink will become group development director having previously held the role of group managing director. He will manage the integration and success of acquisitions, together with retaining responsibility for group supporting functions.
The group also welcomes a new group commercial director, Mark Bannister. Mark is an experienced commercial director having worked at a number of successful companies including RS Electrocomponents and Travis Perkins.
The changes follow the recent announcement that Adler and Allan has a new financial partner, Sun European Partners, and is the continuation of a period of growth for the company, which had a strong performance in 2020 despite the global pandemic.
bp announces that Peter Mather, bp’s UK head of country and senior vice president for Europe, will leave the company at the end of the year.
Peter has been UK head of country and regional president for Europe since 2010 and recently established bp’s new regions, cities & solutions entity across the UK and continental Europe. It caps a distinguished career of almost 40 years working in upstream, refining and supply, gas and power, trading, shipping, and commercial leadership roles across several countries.
William Lin, executive vice president regions, cities & solutions, said: “We’re immensely grateful for Peter’s unwavering commitment to bp over his career. We will miss not only his sound counsel but his ability to represent the company and skillfully manage a broad set of relationships across the UK and continental Europe.”
Measures included in the Budget provide a strong foundation for economic recovery, according to Logistics UK, one of the UK’s biggest business groups. But while there are many positive decisions – including a freeze in fuel duty and extension to the furloughing scheme – we need to see greater investment in training programmes to help fill the growing vacancies in the industry.
Alex Veitch, general manager of Public Policy at Logistics UK, comments: “Funding to train new entrants to the logistics sector is particularly welcome at a time when the industry is suffering significant skills gaps and the loss of EU workers, and a more flexible approach to apprenticeships will also assist the sector in recruiting the next generation of logistics employees.
“However, the industry needs new recruits now, and a more flexible method of providing direct support to those looking to retrain and reskill into vital operational roles like HGV drivers and transport managers would help that transition. The average cost for a 12-month apprenticeship training and license acquisition is £7,000 – Logistics UK would like to see more immediate government support, in the form of interest-free loans or grants, to be made available now to help switch those affected by the pandemic into the vacancies which are open now, and help with the economic recovery from COVID-19.”
On the announcement that fuel duty will be frozen, Mr Veitch comments: “As the economy starts to recover from the impact of the COVID-19 pandemic, Logistics UK and its member businesses are grateful for the news of a continued fuel duty freeze. At a time when many businesses are yet to open up fully, or to see the first signs of recovery, another charge to already fragile balance sheets could have been catastrophic for the organisations which are at the heart of every element of the economy.
“The continuation of the furloughing scheme is great news for businesses in the logistics industry which rely on sectors of the economy like retail and hospitality which are yet to reopen. Today’s announcement will provide reassurance for those employed across the sector, and ensure that logistics businesses can maintain their workforce, ready to go as soon as the economy reopens.”
Responding to the announcement of a rise in corporation tax in 2023, and the extension of the business rates holiday until June 2021 before a discounted rate is introduced, Mr Veitch adds: “Many logistics businesses are still to recover fully from the impact of COVID-19, with a large proportion of the industry still in limbo as a result of the continued closure of sectors such as entertainment and hospitality. It is vital that business is not penalised by additional taxation at this crucial time in the economic recovery, particularly as the logistics sector is the one which drives all other sectors, delivering the raw materials and finished goods needed to boost trade and competitiveness.”
On the news of the infrastructure bank launch, Mr Veitch comments: “Today’s commitment to a multibillion-pound investment into infrastructure is welcome news for the logistics industry. Efficient and effective transport infrastructure is vital for logistics to be able to support the needs of UK businesses; the importance of a strong and resilient network to economic recovery must not be underestimated.
“Logistics UK also welcomes the government’s commitment to a Freeport programme, with the confirmation of eight successful Freeport bids. We are confident these will support business and industry in these locations and urge the government considers expanding the programme.”
Derek Leith, EY’s global oil and gas tax leader comments on today’s Budget:
“It would be an unusual Budget if the Chancellor didn’t find some space for an oil and gas measure: oil and gas has only been absent from a UK Budget on two occasions in the past 25 years. Budget 2021 didn’t disappoint with a specific clarification on the detailed rules for oil and gas decommissioning relief. There are also some knock-on effects of the Chancellor’s announcements on the corporation tax rate, the super deduction for investment, and the extended loss carry-back.
“Papers accompanying today’s Budget included further changes to the corporation tax rules on the decommissioning of UK oil and gas assets. I’m sure clarification of the decommissioning tax rules will be welcomed by the sector as both industry and the Treasury are incentivised to see activities carried out efficiently and at the lowest cost.
“There will be an increase in the rate of corporation tax for businesses with taxable profits of over £250,000, from the current 19% rate to 25% from 1 April 2023. The rate of corporation tax for oil and gas companies active in the UK and UKCS remains at 30% with the supplementary charge an additional 10%. To the extent oil and gas companies have income that falls outside the upstream regime, such as interest arising from cash balances, they will be liable at the increased rate from 2023.
“The heavily trailed increase in corporation tax rate, quietly abandoning the current policy to have the lowest corporate tax rate in the G20 in favour of the lowest rate in the G7, is no surprise. Some of the sting is taken out by delaying the change for two years. The extended loss carry-back will be welcomed by smaller businesses where it will have a material impact. The super-deduction will also be welcome but unsurprisingly it is time-limited to the period up to 31 March 2023 so doesn’t apply when the tax rate increased from 19% to 25%.”
The UK oil and gas industry has welcomed some of the measures announced by the Chancellor in today’s Budget, adding that now close cooperation with the sector is essential to maximise its world-leading expertise and assure a successful green energy transition.
The leading representative body for the sector OGUK said the combination of taxation and investment measures offers a potentially strong route to transition energy and employment ahead of the much anticipated and crucial North Sea Transition Deal that we are negotiating with Government.
OGUK chief executive Deirdre Michie, said: “We welcome the measures around supporting green energy innovation set out by the Chancellor in his Budget Statement today.
“We look forward to engaging with his department on the review of Research & Development tax relief, which can be a key driver of success in the field of green technology.
“The investment towards the Aberdeen Energy Transition Zone, Global Underwater Hub and Hydrogen Hub in Anglesey are encouraging starts to this country’s journey to a low-carbon future that also supports climate goals, employment and energy security.
“Central to all of this is the North Sea Transition Deal reaffirmed by the Chancellor today. Having powered the country for over 50 years, the UK’s oil and gas sector’s energy expertise is crucial to developing the green innovation required to see the UK achieve net-zero emissions by 2050.
“Designed properly, the Deal should be an exciting blueprint to meeting that goal, whilst creating tens of thousands of high-quality jobs and attracting billions of pounds of investment into parts of the country that need it most. We look forward to successfully implementing it in partnership with the Government and making the UK a global hub for green energy technology.”
By upgrading from its previous Isuzu 7.5 tonne fuel oil tanker to a brand-new Isuzu 11 tonne tanker, Kinch Fuel Oils Ltd is benefiting from much greater additional payload using a truck that is compact enough to still access the many tight and restricted customer locations throughout Wiltshire and Gloucestershire.
The latest Isuzu F110.240 rigid truck to join the 12 strong tanker fleet at Kinch Fuel Oils is fitted with a 7000-litre tanker body, commissioned and built by Road Tankers Northern in Barnsley. With a three-compartment tanker body for even weight distribution, this Isuzu tanker will be carrying mainly kerosene and a range of domestic burning oils to customers local to the company’s Malmesbury base in Wiltshire.
“With the increase in fuel oil tank capacity available on the higher GVW Isuzu 11 tonner, we will now be able to cover up to 12 customer drops per day using this vehicle. Our previous Isuzu certainly gave us good service over many years but by moving up the weight range, this has allowed us to become more operationally efficient,” said Roy Kinch, director, Kinch Fuel Oils Ltd. Roy continues: “The drivers of this new Isuzu have already confirmed how easy it is to drive in both urban environments and country lanes, as well as it being really manoeuvrable on site, allowing them to access properties with quite limited access.”
Supplied by Bristol based Isuzu Truck dealer AK Commercials and supported by a seven-year R&M agreement, the Isuzu F110.240 tanker will be operational in the Kinch’s fleet for at least seven years, covering approximately 30,000 km per annum, on fuel oil distribution to customers in the Wiltshire and Gloucester areas.
“Throughout the whole new vehicle acquisition process, AK Commercials were excellent in terms of the service and support given to us. With Isuzu recently opening a new dealership in Swindon, Sparks Commercial Services Ltd, we will now be using them for ongoing service work as they are literally just up the road from us,” added Roy Kinch.
“Over the last few years, we have seen a significant increase in the number of Isuzu chassis being used for fuel oil distribution, especially those companies involved in delivering to domestic properties. With so many rural residences being located in areas with challenging road networks and narrow vehicle access, Isuzu trucks are the perfect vehicle for this type of distribution. It’s good to see a long-established company such as Kinch Fuel Oils continuing to benefit from having Isuzu in its fleet,” said Richard Waterworth, head of sales, Isuzu Truck UK.
Exolum is the new brand name chosen by the CLH Group, strengthening the identification of the company with its future aims, focused on adapting its business to decarbonisation and the energy transition, the digitalisation of activities and the fight against climate change.
This rebranding is due to the need to adapt to the new environment and to transform the company itself, which, in addition to carrying out oil product storage and transport activities in Spain, has embarked on an international growth process and is now present in 7 other countries. The group has expanded its activity to the storage, management and transportation of liquid products, especially chemical products, operating in new sectors, such as eco-fuels, the circular economy and the development of new energy vectors.
In recent years, the CLH Group has experienced a series of notable changes, mainly focused on sustainable diversification, both of the geographical areas where it operates and the services offered to customers, over and above hydrocarbon logistics. Therefore, it became necessary to renew the brand and align it with this new era of the company.
“We want these initiatives for diversification and adaptation of the company to be aligned with the new challenges of the sector with a change in our corporate identity that reflects our growth and leadership,” explains Jorge Lanza, CEO of Exolum. “This brand reflects the transformation process that we are going through internally, to align with the company’s new business models and transmit our company values. These values are innovation and trust, reflecting the open and flexible way that we face the future, promoting new business opportunities committed to the development and sustainability of the planet.”
The new name, simple but modern, shows a spirit where innovation is the key. The brand is easily recognised in any language and the company will use this one name for all its business, both in Spain and six other countries where it currently operates (UK, Ireland, Germany, Netherlands, Panama and Ecuador – in Oman, it will continue to operate with the joint venture OQ Logistics), thus reinforcing the global identity of the group and creating a great brand that is sound, international and unifying.
With Exolum, the company sets itself a challenge to maintain the same level of recognition, extending it to the public at large, adapted to meet the aim of the company: “We create innovative solutions to improve our world”.
The January issue of Fuel Oil News magazine looked at the evolution of tanker design and production. Here, we look ahead and consider the future of the tanker and how it may change to reflect the changing face of fuel.
A new facility, which will convert non-recyclable household waste into sustainable aviation fuel (SAF) for use by airlines operating at UK airports, has been created in a joint venture between Essar Oil (UK) Limited (Essar), Fulcrum BioEnergy Limited (Fulcrum) and Essar’s subsidiary company Stanlow Terminals Limited.
This innovative bio-refinery will convert several hundred thousand tonnes of pre-processed waste, which would have otherwise been destined for incineration or landfill, into approximately 100 million litres of low carbon SAF annually.
The project, which will see an investment of approximately £600m, will use Fulcrum’s proven waste-to-fuel process, which is already being deployed at its pioneering facility outside of Reno, Nevada in the United States, where operations are due to begin later this year.
Fulcrum will construct, own and operate the plant within Essar’s Stanlow manufacturing complex in the North West of England and Essar will assist with the blending and supply the new SAF to airlines, with Stanlow Terminals Limited providing product storage and logistics solutions for the project under a long-term agreement.
UKPIA director-general, Stephen Marcos Jones, commented:
“Today’s announcement demonstrates how critical Essar’s Stanlow Refinery is to the success of these efforts to decarbonise the economy of the North West, as well as showing more broadly how the downstream oil sector is an ally in the UK’s ambitions to reach ‘Net Zero’ emissions by 2050, as outlined in UKPIA’s Transition, Transformation and Innovation report.
“Aviation is going to be one of the hardest sectors to decarbonise, so this investment by Essar and Fulcrum to build a biorefinery in the UK is paramount to meeting the Net-Zero commitment.”
The project, named Fulcrum NorthPoint, will create 800 direct and indirect jobs during the design, build and commissioning process and over 100 permanent jobs during its operation. Plans for Fulcrum NorthPoint are expected to be complete at the end of this year and subject to planning consent, will be operational in late 2025.
The Oil Market Journal (OMJ) has launched a series of new dashboards which provide full details on oil tankers en-route, in port and at anchor in ports around the United Kingdom and Ireland.
The service updates in real-time and details any tanker in the world which has set its destination to a port in the UK and Ireland.
The service provides full details on the gross tonnage of the cargo and other data including estimated time of arrival, last destination and status.
Within the OMJ Port Report Dashboards clients can click on a tanker report and a pop-up will provide a map detailing the current location of the tanker along with details on other tankers in dock or heading to other ports listed on the Dashboard tile.
In addition, clients can edit the service to their own individual requirements including the country, port, type of tankers and/or tanker status.
Advantages
The service enables oil distributors to ascertain when a tanker is en-route to a port and is especially useful during periods of “tight supply” when product is on allocation.
The data shows users when the tanker has arrived and as a result, users will know that product will soon be available again at the oil terminal.
Pre-built Dashboards
OMJ Port Report Dashboards are available for all the key oil ports in the United Kingdom and Ireland and is part of the “OMJ Professional Subscription.”
Free trials are available via OMJ’s support team.
Commenting on Shell’s pledge made on 11th February, to accelerate the drive for net zero emissions, OGUK sustainability director Mike Tholen said:
“It is an exciting time for the country’s oil and gas industry as we see companies including Shell demonstrate how our sector is transforming to meet the clean energy challenge, putting their expertise to work, as other companies are also doing, to help achieve our climate goals here in the UK.
“Now is the time to develop a sustainable future. By reducing the carbon impact of oil and gas as we invest in low carbon technologies, we can unlock a homegrown move towards net zero which maintains consumer affordability, promotes our world class supply chain and protects jobs and the energy communities we support.
“Everyday we see more examples of how this industry is changing. As we continue to face the challenges brought about by the pandemic, the UK economy should build on its strengths. The North Sea Transition Deal proposed in the Energy White Paper will be essential to accelerating investment and creating employment opportunities in new technologies while reducing emissions from production.”
The Chartered Institute of Logistics and Transport (CILT) believes that “we can achieve net-zero by 2050” through a range of measures recommended to government and others in its latest report, Routes to Net-Zero 2050: 2020 Year End Summary. The report includes 21 recommendations for action covering all transport modes and activities.
At the end of a year of study, debate and events, CILT has published its year-end report summarising its work on Routes to Net Zero 2050 and looking ahead to the work to be done in 2021.
Kevin Richardson, chief executive, CILT(UK), says: “Transport accounts for 28% of UK carbon emissions and, despite the downturn caused by the coronavirus pandemic, transport emissions will grow with recovery unless action is taken. Government is clearly the key player, but industry, organisations and individuals are also urged to take action, and we believe there is plenty to be achieved, starting today.”
Recommendations for government include:
UKIFDA, one of the largest training providers for tanker drivers in the UK, has now been approved as a remote training centre by all the appropriate driver training bodies. This new centre will allow UKIFDA to continue to provide their complete ‘one stop shop’ tanker driver training in a remote environment.
UKIFDA chief executive Ken Cronin comments:
“The DfT/DVSA have recently announced that, due to the current pandemic, driver training should take place remotely whenever possible. The speedy action taken by UKIFDA to implement remote training means this will not impact our members training requirements.
“Through the new remote training, delivered via Zoom, UKIFDA are now able to offer UKIFDA members ADR – initial and refresher courses, CPC – all modules and PDP – annual refresher classroom driver training courses. The courses are all industry specific and tailored to the individual’s needs.
“Examinations cannot be conducted remotely but arrangements can be made for these to take place at UKIFDA members’ approved sites in adherence to COVID-19 restrictions and UKIFDA will assist members in organising this.”
Low costs – high standards
Kent-based logistics company Lenham Storage has signed a new 12-month fully comprehensive support contract with Europump Maintenance Ltd for all the fuel island equipment at its two main depots.
Speaking about the deal, Lenham Storage’s fleet manager, Steve Emsley, said: “We are delighted to have signed the deal with Europump Maintenance Ltd. We knew some of their personnel and knew they had a reputation for good service so it made sense to switch to them. We are very happy with how our relationship is progressing.”
Martyn Gent, business development manager at Europump Maintenance Ltd, commented: “It’s great to have been chosen by such a long-established logistics expert. We are very pleased to be working together.”
StocExpo, the leading tank storage event, has been postponed from June 2021 to 8 – 10 March 2022 in a decision made in consultation with the community. The live exhibition, conference and associated awards, which regularly attracts key visitors and exhibitors from across the industry’s biggest, best and most innovative players, will be held at the Rotterdam Ahoy in Rotterdam, Netherlands.
The Covid-19 pandemic has definitely affected all existing industries and sectors on the planet — and oil and gas are not different. However, this doesn’t mean that the crisis has not presented some opportunities for crucial industry decision-makers. For instance, this pandemic could act as something of a springboard; particularly when it comes to creating more sustainable and stronger business models.
Cutting-edge digital technologies could make the crux of this effort, allowing existing companies to achieve more with fewer resources, as well as attract younger talent.
Plenty of directors and partners in major oil companies have talked about how the coronavirus pandemic has altered both short-term and long-term outlooks in the business. Namely, due to the fact that oil and gas companies must learn how to extract bigger margins via technological diversification. Their businesses must become less cyclical and sturdier, independent of their exposure to production and exploration.
For example, most offshore companies had major troubles adapting to the changes brought by the coronavirus pandemic. Herein, we’re talking about practical adaptations that had to be performed in the work environment. There have been plenty of projects that had to be shut in, as well as crews that were pulled back from their offshore locations altogether. In many cases, only operations related to core productions remained functional. The sector is set to recover sluggishly, but digital technologies could help with all of that.
At first, trade shows and industry gatherings were centered around conversations on immediate responses; how decision-makers could provide quick adaptive measures to the virus. But after that, it became more and more about ambitions to extract some value from the disastrous events of 2020; using the new environment to create more resilient, sustainable business models for the offshore industries and cogeneration projects in a mid-term outlook.
For instance, there have been examples where North Sea offshore operations managed to retain a more than acceptable level of productivity while also applying all of the required coronavirus measures. They were forced to pull back a little under half of their regular crew from offshore platforms. However, innovative use of digital wearables, remote viewing, and contemporary work planning allowed them to achieve staggering results; 90% of all the planned core activities and plant maintenance!
Of course, there are issues with digital innovations in the oil and gas industries beyond such smaller remedies. If digital technologies were to be adopted more widely along the value chain for offshore businesses, all of the companies involved would actually suffer from a challenge in recruitment.
Otley-based company, Tate Oil, has partnered with Yorkshire Dales Millennium Trust (YDMT) to plant 3,000 trees over the next three years, in a bid to reduce its carbon footprint.
Launching on 1st January 2021, family-run Tate Oil will be planting a tree for every 4th order a qualifying customer places – helping the 1.5 million homeowners using heating oil to offset their carbon emissions. As a completely free service to the customer, Tate Oil’s scheme is one of the first of its kind in Yorkshire and focuses on giving back to the local community.
Working with local trust, the scheme will support the target of planting 100,000 trees within the county, including areas such as Nidderdale and the Yorkshire Dales. The charity will be working with landowners and farmers to facilitate the tree planting, with customers able to visit their tree.
Michael Devlin, deputy CEO at YDMT added:
“Through our ‘Together for Trees’ campaign we are working with many supporters and partners such as Tate Oil to plant 100,000 additional trees across the region. Trees are hugely valuable as a habitat for wildlife, supporting some of our most endangered woodland animals, like red squirrels, dormice and cuckoos.
“They are also important for our mental health and wellbeing and we believe that everyone should have access to them. The appeal aims to raise funds to create beautiful woodlands that everyone can enjoy for years to come.”
Tate Oil has ambitious goals for their new green initiative:
“This is a really exciting opportunity for us to help our customers offset their carbon emissions” says Andrew Tate, director of the company. “This is the next step in Tate Oil becoming a greener company, and we’re pleased to be working with a local charity doing great things for our county”.
The scheme will offset approximately 3,000 tonnes of CO² from the atmosphere, bringing Yorkshire a step closer to achieving the UK’s net-zero emissions target by 2050.
Euro Garages’ parent company EG Group has agreed a deal to acquire Asda’s petrol filling stations, car washes and ancillary land for £750m. The shareholders in EG Group, the Issa brothers and TDR Capital, made a deal to take over the Asda Group on 2nd October 2020.
EG’s acquisition of the forecourt business is subject to the same CMA regulatory clearance being received by the group’s shareholders for their acquisition of Asda. Subject to these approvals, the transaction is expected to close in the second quarter of 2021. If the deal is approved, EG Group would have around 700 forecourts in the UK, only behind MFG, with more than 900 sites.
When announcing the deal, EG Group said:
“A detailed integration plan will ensure a seamless transition into EG Group’s UK operations, which have successfully integrated four significant acquisitions since 2015. The forecourts, which will remain an integral part of the broader retail locations where they are situated, will continue to be Asda branded and will remain a price leader in the fuel market.”
Zuber Issa CBE and Mohsin Issa CBE, co-founders and co-CEOs of EG Group, in a joint statement, commented:
“We are excited to have the opportunity to further strengthen our network in the UK through the proposed acquisition of Asda’s forecourt business, which will enhance our position as a major independent forecourt operator and provide a platform for future growth of the combined network.”
Certas Energy has purchased seven forecourts in the North East of England as the company continues to grow its Gulf network across the UK. The portfolio of forecourts, with a combined volume of 31 million litres, was purchased from Marla and Gus Saggu.
“We are delighted to have concluded this acquisition of seven well-run forecourts and a highly capable and community-minded team of people,” enthuses Richard Billington, director, Certas Energy. “It’s a good fit for our business and adds further strength to our company-operation. We already have a strong Gulf presence in the North East and these sites will be an ideal complement to our thriving dealer operation.”
The sites will be rebranded to Gulf in March whilst simultaneously transforming each shop into the latest-design SPAR C-store.
“We are taking on a healthy business that will be further enhanced by our stunning new Gulf livery and award-winning loyalty platform, Oomph,” continues Richard. “Working alongside SPAR and with ongoing investment, we see huge potential at each location.”
Marla and Gus Saggu commented: “It feels like the end of an era but we are very pleased to be handing over the business and, in particular, our people to Certas Energy who, we are sure, will do great things with them.”
The seven newly acquired forecourts are located in Bishop Auckland, Crook, Howden-le-Wear, South Shields, Stockton, West Rainton and Witton Gilbert.