Market & Supply 49
It says something about the current oil market that the conflagration between Saudi Arabia and Iran at the beginning of the year, generated little more than a slight upward blip in prices. Ditto the muted market reaction to an apparent hydrogen bomb test by comedy Teletubby leader of North Korea, Kim Jong-un. As recently as 2013, these kind of events would have sent prices sky-rocketing. But such is the current level of over-supply in the oil markets that prices only momentarily headed up, before continuing their relentless drive downwards. The only clear conclusion can be that – however bad things are in the world – geo-political concerns are very much playing second fiddle to the basic dynamics of supply and demand.
The new Essar brand – breaking into the UK’s retail market
Essar Oil UK entered the UK retail market in November 2015; last month the refiner opened its third site at Middleton in Lancashire.
For full details or to book a place at Transport Manager Northern Ireland call the FTA Member Service Centre on 03717 11 22 22
The FTA’s Transport Manager seminar takes place at Titanic Belfast next week.
Four key organisations are calling for the Budget to include a key measure to help consumers cut carbon emissions and reduce fuel bills.
“Our new upgraded tanker fleet reflects our continued commitment to driver safety and operational efficiency, “ said Mary Wolf, managing director of Phillips 66 UK & Ireland Marketing
Seventy per cent of the Phillips 66 total road tanker fleet has been replaced with 32 new MAN, Scania and Merc vehicles.
Vostock Capital launched its first international free online webinar earlier this month
Reducing production of lower margin products such as fuel oil and naphtha, Essar’s Stanlow refinery has increased the yield of high margin products such as gasoline and middle distillates
Essar Oil (UK), which owns and operates the Stanlow Refinery, announced its best ever performance for the first nine months of a financial year, for the year ending March 31st 2016.
Since acquiring Stanlow in 2011, Essar has successfully reconfigured the refinery to operate as a single train highly optimised site. The refinery has increased the yield of high margin products such as gasoline and middle distillates and also reduced production of lower margin products such as fuel oil and naphtha.
Robust operational performance in YTD FY16 has delivered a number of notable landmarks including the highest ever monthly amount of residue being upgraded via Europe’s largest Cat Cracker, highest monthly throughput in the HDS2 upgrading unit and record daily production of high value propylene.
In the nine months to December 31st, 2015, Stanlow, which produces about 15% of the UK’s road transport fuel demand, processed 6.77 MMT of crude, a 7% increase on the previous year’s 6.35 MMT.
Boris Johnson is encouraging “everyone harbouring ancient boiler artefacts” to sign up to his boiler cashback scheme now
Mayor of London Boris Johnson launched a new boiler scrappage scheme for Greater London residents last week – and yes, it does include oil-fired boilers!
Around 12,700 households in Greater London currently use oil for heating and an estimated 60% of these still have a standard efficiency boilers in need of replacement.
The 8-week scheme will provide a £400 cashback subsidy to upgrade a standard 70% efficiency oil or gas boiler to an A-rated 890% efficiency condensing model.
Boris Johnson is encouraging “everyone harbouring ancient boiler artefacts” to sign up to his boiler cashback scheme now and benefit from a brand new cost effective heating system.
“This scorching scheme will help 6,500 London homes become more energy efficient and cut annual bills,” said Boris
Whilst the number of oil-using homes that may benefit from the scheme is quite small, OFTEC welcomed the initiative saying:
“It vindicates our long-championed view that a boiler scrappage scheme would be the most cost effective way to improve the UK’s domestic energy efficiency and substantially reduce carbon emissions.”
“Our country urgently needs carbon reduction schemes that don’t cost the earth and actually work,” said OFTEC director general Jeremy Hawksley.
“Boiler scrappage is an ideal way to help UK households to reduce carbon emissions from heating in a practical and affordable way.”
For more information – visit www.london.gov.uk/what-we-do/housing-and-land/improving-quality/london-boiler-cashback-scheme
New vehicles for Certas Energy which is ‘taking the opportunity to introduce the best models available for our business needs’
Twenty-one new Scania day cab tractor units fitted with the latest in-cab technology and tracking devices joined the Certas Energy fleet last month.
The new units – built by LAG, Lakeland and Magyar with Touchstar in cab technology – are replacing older units in use at Cardiff, Ellesmere Port, Immingham, Manchester, Plymouth, Southampton, St Clears (Wales) and Thames Riverside
“When it comes to replacing tankers, it’s our opportunity to ensure we introduce the best models available for our businesses needs while ensuring operational efficiency,” said head of fleet Glen Tyrie.
The tractor units benefit from a lower GVW – a reduction by some 700kg – due to the use of a day-style cab. This allows the tanker to accommodate up to 36,500 litres, an increase of between 800 to 1,000 litres on a full load compared to the previous trucks.
With Touchstar in cab technology customers have effective monitoring of each delivery and increased flow of data and information and the technology reduces in-house paperwork and also provides a useful platform for (certain) customers to view collection details and obtain delivery reports.
Certas Energy will complete the ISO50001 Energy management systems accreditation process in 2016. This standard recognises companies that implement and maintain systems for improving energy management, by applying a systematic approach to continually improve energy performance of the business, while reducing energy use and costs.www.certasenergy.co.uk
Members of the team at Preston-based Ribble Fuel Oils took to their bikes for a Grand Day Out in Cumbria.
“The event, which took place on 16th January, was organised to raise money for the many people who were victims of the December floods,” said David Hodge.
“Our team took part in a bike ride from Kendal to Staveley – it should have been 25 miles but as some of us were unfit – no names mentioned – so we only did 15 miles!”
Ribble was delighted to make its contribution to this special fundraising event which raised a total of £20,450.
Fuel Oil News was pleased to hear that the depots of Ribble Fuel Oils had not been affected by flooding.
The Tank Storage Association (TSA) has announced that its executive director, Hugh Bray, is to retire at the end of April 2016. Peter Davidson, currently UKPIA’s director of safety, commercial & projects, will take over.
TSA’s chairman, Martyn Lyons, commented: “TSA’s Council wishes to thank Hugh for his significant contribution to the success of TSA and we look forward to working with Peter”
TSA is an industry-based organisation whose members are dedicated to the professional provision of third party bulk liquid storage in the UK. Products stored typically include crude oil, petroleum and chemicals as well as potable liquids, edible oils and fats. Receipt and delivery of these products takes place by means of sea transport, inland barge, road, rail and cross country pipeline. Tank storage thus provides an essential interface between these various modes of transport.
The industry also provides additional services, such as heating, blending and transformation of these products so that the diverse requirements of customers can be effectively met in a safe and cost effective way.
www.tankstorage.org.uk
Storage tanks, equipment, 55,000 litres of fuel, a quantity of cash, computers, business records, a lorry and a trailer were seized during the operation
Earlier this month, eight men were arrested and 55,000 litres of fuel seized, as part of an ongoing HMRC investigation into a suspected fuel smuggling fraud worth an estimated £3 million in evaded tax.
HMRC officers searched one business and four domestic addresses in Knowsley, Liverpool, Manchester and St Helens. Simultaneously, in Northern Ireland HMRC and officers from the Police Service of Northern Ireland carried out searches of six domestic addresses in counties Antrim, Armagh and Down.
Storage tanks, equipment, 55,000 litres of fuel, a quantity of cash, computers, business records, a lorry and a trailer were seized during the operation. Seven men have been released on bail and investigations continue.
“Fuel fraud costs millions of pounds in lost duty every year, meaning the public lose out on vital funds for essential services, and it creates an uneven playing field for honest businesses,” said Sandra Smith, assistant director, Fraud Investigation Service, HMRC.
A BP branded MRH service station in Cheshire
On 11th January 2016, the European Commission approved the acquisition of MRH by Lone Star; the deal concluded on Tuesday.
Dallas-based Lone Star is a global private equity firm that invests in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organised fifteen private equity funds with aggregate capital commitments totalling approximately $60 billion.
As the activities of MRH, which owns and operates fuel service stations in the UK and the Channel Islands, do not overlap with those of Lone Star, the Commission therefore concluded that the proposed acquisition would raise no competition concerns. The transaction was examined under the simplified merger review procedure.
In recent years Lone Star has also acquired 89 ‘distressed hotels’ and has since revealed plans to bring these UK hotels together to form a £1 billion company, trading under the name Amaris. The company plans to spend £100 million in renovating the hotels which are in ‘great locations.’FOR MORE ON THE UK RETAIL MARKET – SEE INSIDE OUT IN THE FEBRUARY 2016 ISSUE OF FUEL OIL NEWS – OUT SOON!www.mrhgb.co.ukwww.lonestarfunds.com
Schrader – interested to see how the UK market reacts to this new prototype 6-compartment tanker
A new prototype UNITAS 2020 6-compartment petroleum tanker manufactured by German company Schrader, the first of its kind in the UK is now in service at HOYER Petrolog.
The trailer is designed to carry automotive fuel (UN 1202, UN 1203 & UN 1223), as well as Ethanol (UN 1170) and mixtures of petrol/ethanol (UN 3475). The unit provides a net capacity of 43,000 litres and a tare weight, inclusive of pump, of 5450kg.
“The development of this new prototype is the result of a close partnership with Schrader over a number of years,” said Allan Davison, operations director.
“This ground-breaking tank joins HOYER’s fleet with a number of innovative safety and design features for increased efficiency in supply and delivery and we’re proud to be the first company to bring it to the UK.”
The unique characteristics of the tank include:
The Theo T tanker sets sail from the Port of Corpus Christi bound for Europe
Emco Wheaton, part of Gardner Denver Energy, played a pivotal role in the transfer of the first shipment of U.S. crude oil for export in 40 years.
Using three Emco Wheaton marine loading arms (MLA) the Greek oil tanker, Theo T, was loaded on New Year’s Eve by NuStar Energy at its North Beach Terminal at Port Corpus Christi in Texas. In 2014 Nustar Energy made significant investments in the terminal equipment to cost effectively and safely supply crude oil to the global market.
Integral in NuStar’s ability to load export-size cargoes at a rate of 30,000 barrels per hour was a state-of-the-art metering system, vapour control system, and a dock structure with three marine loading arms. The complete MLA package for NuStar has been designed and manufactured at Emco Wheaton’s custom built plant in Kirchhain, Germany, the company’s MLA engineering and technology hub.
“It’s a great achievement for Emco Wheaton’s marine loading arms to play such an important role in US history and we’re proud to be a part,” said vice president Michael O’Neil. www.emcowheaton.com
Since its launch in 1980 FPS EXPO has become the largest event dedicated to the fuel oil distribution industry
Now in its 36th year FPS EXPO 2016 will be at the new Exhibition Centre Liverpool (ECL) on 20 and 21 April.
“With more exhibitors and larger stands displaying more products and services, we urge all oil and fuel industry professionals to come along,” says Dawn Shakespeare, marketing and events manager for the Federation of Petroleum Suppliers (FPS).
More new names have joined the list of exhibitors including Wincanton, Suttons Group, TIP Trailer Services UK, Essar Oil UK, Liquip UK, Backwatch Safety, In Control Projects and Tyretracks.
“Entry to the exhibition, which attracts over 1,200 visitors is FREE and for the first time key industry professionals from the DVSA, HSE and CIRIA are scheduled to speak in a series of seminars,” added Dawn.
“Liverpool benefits from an excellent communications network and visitors can travel to the venue easily from anywhere in the UK or overseas thanks to the motorway network, rail links, and the nearby international airport and the ferry terminals.”
The exhibition will feature more than 100 exhibitors from across the UK and Europe with some of the biggest names in the industry including Scania, MAN Truck and Bus UK, Philips 66, RTN, Kingspan Environmental, Hytek, Emco Wheaton, Pen Underwriting incorporating OAMPS, Williams Tankers, Valero Energy and Mabanaft.To register to visit FPS EXPO 2016 for FREE go to www.fpsshow.co.uk
Graeme McFaull – ‘delighted and privileged’ to become chairman of the Suttons Group
Graeme McFaull was appointed as chairman of the Suttons Group earlier this month. His appointment follows the untimely death of Michael Sutton, the former longstanding chairman, in May 2015.
“The Group board is unanimously agreed that Graeme McFaull is an ideal candidate to chair Suttons at this exciting stage in the company’s history,” said CEO John Sutton.
“Graeme has significant experience in the management and chairmanship of logistics and supply chain businesses. He understands the competitiveness of our industry and also has a strong empathy with our culture and commitment to serving our customers.
Graeme was formerly chief executive of Wincanton, where he was instrumental in securing the company’s position as a major force in European logistics. Graeme is currently involved as a non-executive with a UK construction group and as chairman of a logistics real estate investment company. He is a chartered management accountant and spent his early career in senior finance roles with PepsiCo and Cargill.
“I am delighted and privileged to become chairman of a company with such a rich heritage as Suttons,” said Graeme. “I look forward to being part of the team that builds upon the strong position we hold in the market today.”www.suttonsgroup.com
To tackle the problem of recruiting and retaining staff in the logistics industry, the Freight Transport Association (FTA) is to hold a Logistics Skills Shortage Summit in March.
The FTA Logistics Skills Summit – Attract, Recruit, Retain, will be held at the Ricoh Arena in Coventry on Thursday 17th March and is a FREE to attend event with tickets offered on a first come, first served basis. The event follows last year’s successful Driver Crisis Summit which attracted more than 600 delegates.
“The past 12 months have seen a slight improvement in the number of unfilled driver vacancies across the sector,” stated James Hookham, FTA’s deputy chief executive.
“The government’s recognition of the need to professionalise the industry through its new HGV Driver Trailblazer Apprenticeships is a huge step forward.
“However, there is still a great deal to be done to make the industry more attractive and to help employers recruit and retain staff. We need to improve the public perception of logistics and make it a desirable place to work. The summit will build on the success of last year’s event and help employers to develop effective strategies for recruitment and retention.”
The summit will feature a number of key speakers and interactive workshops focusing on attracting new talent into the industry; recruiting from specific sectors including school leavers, armed service leavers, EU workers and NEETS (young people not in education, employment or training); and retaining the skills that organisations currently have.
According to Manpower UK – recruitment of engineers and technicians is the most difficult with professional drivers being the third. There is currently a shortage of 45,000 HGV drivers in the sector with employers also having problems recruiting in other areas, such as warehousing.
To register for a FREE place at the Logistics Skills Summit, please visit the FTA website www.fta.co.uk/events
Inter Terminals is now the largest bulk liquid storage provider in Scandinavia with comprehensive facilities on both sides of the Danish Straits
As demand for storage outstrips supply, Inter Terminals has made a multi-million Euro investment.
The investment is in large ship handling and oil storage at the Asnaes Oil Terminal (AOT) in the Danish Straits, the third most active channel for oil products in the world.
Dredging and improvement works at AOT’s main oil quay and an adjacent jetty have resulted in deepening the drafts to 11.5m and 14.2m respectively. The jetties are able to accommodate vessels of Aframax and Suezmax up to 180,000 tonnes. To match this new loading/unloading capability two tanks at the terminal are being recommissioned, providing an additional 40,000 cubic metres of oil storage.
New developments – the installation of mixers/blenders in heated fuel oil and vacuum gas oil (VGO) tanks and radar-based tank gauging technology – at Asnaes are part of an upgrade programme at all four Danish terminals.
AOT, one of four coastal oil terminals operated by Inter Terminals in Denmark, is capable of storing 430,000 cubic metres of products, with the other terminals located at Ensted, Stigsnaes and Gulfhavn. The AOT complex occupies a strategic position for international movement of fuel oil destined for Europe, Asia and the USA.
Inter Terminals’ most recent acquisition in Sweden strengthens the company’s position on the Baltic still further with four terminals totaling 1.2 million cubic metres at the country’s principal ports of Göteborg, Malmö, Södertälje and Gävle. Occupying prime positions that cover both the west coast and Baltic Sea product flows, the terminals provide specialist storage, handling, and distribution for a diverse range of products including fuel oil, diesel, jet fuel, VGO and bitumen.
“Average utilisation rates across our European storage network in the first three quarters of 2015 were 93% compared with 77% for the same period in 2014,” said chief executive Martyn Lyons.
“Our ongoing investment in this strategically important location means we’re ready and able to meet the fast changing needs of the market and our customers.”www.InterTerminals.com
OPW has completed the acquisition of Tokheim Group S.A.S.’s dispenser and systems businesses.
One of the most recognised brands in the retail fueling industry, Tokheim manufactures fuel dispensers, retail automation systems and payment solutions and hasa presence in Europe, Middle East, Africa, South America and Asia-Pacific.
“Both Tokheim and OPW have been leaders in the retail fueling industry for more than a century,” said David Crouse, OPW president. “By integrating Tokheim’s advanced line of dispensers and automation systems, the combined business will be able to offer our customers an unparalleled end-to-end fueling solution.”
Tokheim is the fifth major acquisition for OPW in the past two plus years, and matches previous acquisitions, including Fibrelite, KPS, Jump, Liquip, of category-leading brands outside the North American market.
“OPW’s goal is to bring the very best solutions to our customers in all regions of the world,” said Keith Moye, OPW VP of global marketing. “Our combined product portfolio now comprises the industry’s broadest product offering, enabling us to bring a more complete solution to our customers.”
www.opwglobal.com/opw-retail-fueling/tokheim-microsite