News 36
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.
It is with great sadness that Fuel Oil News reports the passing of Anthony Hoctor (known to most as Terry), proprietor and founder of Speed Oil Services and former director of what was the Federation of Petroleum Suppliers (FPS).
Fuel Oil News would like to thank everyone who nominated a charity in response to our festive email. We are very pleased to announce that we will be donating £100 each to Macmillan, Mind and Midlands Air Ambulance charities.
Fuel supply brand, JET, has today announced that ten new Ascona-owned sites will be joining its growing nationwide network of JET branded dealer sites – a move that further strengthens its relationship with the roadside retailer.
JET currently supplies Ascona Group, one of the fastest growing independent forecourt operators in the UK, at three sites: Fyfield Service Station in Marlborough; Jack Service Station in Stoke-on-Trent and Deepcar Service Station near Sheffield – a relatively new joiner having signed up to the network in November last year (2020).
The ten new sites, mainly located in Bedfordshire, Buckinghamshire and Warwickshire will provide depth and strength in these areas – boosting JET’s total portfolio of UK JET dealer sites to more than 300. And with Ascona sites now numbering 13 and with the potential for further sites in the future, Ascona is fast becoming one of JET’s largest retail customers.
Commenting on the decision to move to JET, Darren Briggs, MD, Ascona Group says: “JET provides an industry-leading fuel supply package and together with their new JET brand image, is recognised in the industry for great value and service. They are the perfect partner for Ascona as we continue to expand our operations in the UK via both organic and acquisitive growth and focus on building best-in-class retail roadside destinations that cater to changing customer needs.”
Working closely with Ascona, the sites will be rebranded and repumped including two KDRB (Knock Down Re-Build).
“We are delighted to welcome these new sites to our JET dealer network and introducing the JET brand to a number of new communities.” Says Oliver Mueller, retail business manager, Phillips 66 Limited “With a reputation driven by good service and good value we are committed to building business relationships with dealers across the UK and are looking forward to helping these new sites flourish over the coming months – further strengthening the JET brand.”
The licensed supply contract with Ascona Group is in place until 2026.
The ten new JET dealer sites are:
With over 500,000 homes currently using heating oil in Northern Ireland, a new video has been released to communicate how straightforward it could be to dramatically cut CO2 emissions through the use of HVO as a near drop-in and, therefore, very cost-effective, replacement for kerosene.
David Blevings, NIOF, explains:
“Further to our November article, ‘NI Energy Strategy – an update’, we learn that OFTEC is promoting a video to local politicians ahead of the new NI Energy Strategy. The video shows how easy a transition to HVO will be for NI consumers and reinforces the immediate carbon reductions that are available for liquid fuel users.
“OFTEC has advised Government that the new strategy must be technology neutral and the inclusion of biofuels offers a seamless transition for existing liquid fuel users; a simple option for government to maximise carbon emission reductions in the off-grid sector at least cost for consumers with immediate effect.”
The video can be viewed here.
For further information contact David Blevings. (dblevings@oftec.org or david@nioil.com)
The end of 2020 saw the culmination of a 3-year development program by Sampi in collaboration with Alpeco Ltd. As a result, Alpeco has announced their brand new TEX FLOW computer which has attained full UK approval and has been successfully undergoing trials with Nolan Oils on its new COBO tanker since September 2020.
Claire Bishop
World Fuel Services has announced that Claire Bishop has been promoted to the role of Vice President, UK Land. Claire started in her new role on January 1st, and takes over from Bob Taylor, who will be retiring in May. As vice president, Claire will oversee all aspects of World Fuel’s UK Land business, comprising Watson Fuels, fuel cards, lubricants, boiler servicing and wholesale fuel activities.
Since joining World Fuel Services in 2016, Claire has worked as senior finance director for UK Land as well as serving as an executive member of the UK Land board. She has played a key role in leading and developing the UK Land business through a period of significant change, which has seen business transform its leadership team, established specialist sales and operational divisions, and invest in new technology, depot infrastructure and advanced vehicles. Before joining World Fuel, Claire held a variety of finance director positions, for companies across the technology and manufacturing sectors.
“I am thrilled to have this opportunity,” comments Claire. “I’m proud to be picking up the mantle from Bob, and to be getting the chance to build on the fantastic work he has done over the past three years. I’m also pleased to work for a company that promotes from within, and one that is focused on supporting diversity and inclusivity. I look forward to continuing to work alongside our great team in the coming months and years ahead.”
Paul Vian, senior vice president, EMEA for World Fuel Services, spoke of his excitement for the future of the business under Claire’s direction. He said:
“Alongside Bob and his leadership team, Claire has played an integral role in developing our systems and processes, and investment in our talent, which has provided the solid foundations upon which we have been able to successfully develop and grow. Our company commitment to succession planning and talent development has made the decision to promote Claire to Vice President, UK Land a rather natural process.”
Paul continues:
“As I wish Bob all the very best of happiness as he completes his journey on a very successful and illustrious career, I also wish Claire all the very best of success as she embarks upon her new journey within World Fuel Services.”
The Tank Storage Association (TSA) has formally launched a new Environmental, Social, and Governance (ESG) Charter affirming the sector’s shared commitment to environmental, social and governance principles.
The ESG Charter has been developed in conjunction with member organisations and is accompanied by a framework to assist TSA members in developing clear and common policies. The commitment builds on TSA’s recently launched Safety Leadership Charter and Significant Indicators programme, demonstrating the sector’s dedication to continuous improvement.
Peter Davidson, executive director of the TSA, said:
“TSA’s members play a vital role in the UK’s economy by providing the critical infrastructure necessary for the transportation of bulk liquids, creating jobs and fostering innovation. Through adherence to the Charter, our members affirm their shared commitment to environmental, social and governance principles. Our association continues leading from the front and this, together with our Safety Leadership Charter and Significant Indicators programme, demonstrates our commitment to strive for continuous improvement.”
For an electronic copy of TSA’s Environmental, Social, and Governance Charter, click here.
Peter Turner
It is with great sadness that Fuel Oil News reports the passing of Peter Turner, former managing director of Rix Petroleum, on the evening of Friday 22nd January 2021
After extensive testing, Selwood has become the first UK rental company to offer pumps that can be fuelled by vegetable oil in an industry-leading move that will significantly cut greenhouse gas emissions.
Selwood has also committed to ensuring that new pumps manufactured at its headquarters in Chandlers Ford, Hampshire, for use in the UK and around the world, are HVO-compatible, subject to individual engine manufacturers’ guidelines.
Lawrence Bradbury, director of engineering at Selwood, said:
“At Selwood we are committed to reducing the environmental impact of our products and operations wherever possible. Following conversations with several large clients who were looking for alternatives to diesel fuel, our engineers have thoroughly tested the use of HVO in the Selwood range.
“We are delighted with the results – not only is HVO completely interchangeable with diesel in compatible engines, it can also be used with no negative impact on performance. We are very pleased to be able to let customers know that HVO can be used safely as part of our ongoing commitment to sustainability.”
Selwood has several ongoing initiatives to reduce its carbon footprint, including the introduction of electric vehicles to the fleet and the option of IE3 electric motors in its pump rental and sales ranges where appropriate. The company holds the ISO 14001 standard for its environmental management systems.
Motor Fuel Group (MFG) announces that it has signed an agreement to purchase seven operational stations and nine new to industry (NTI) sites from BP. This is part of a wider agreement including fuel supply for 100 sites.
Greenergy announces its continued commitment to renewables through an investment in advanced biofuels. Utilising a combination of existing technologies, the project will create low carbon fuels from waste tyre feedstock.
Essar and Progressive Energy, developers of HyNet North West – the UK’s leading industrial decarbonisation cluster – have joined forces to set up a venture to produce low carbon hydrogen at Essar’s Stanlow Refinery in Cheshire, for use across the HyNet region. It will provide Essar Oil UK with low carbon hydrogen to decarbonise its own energy demand in addition to creating a hydrogen economy across North West England and North East Wales.
Natural gas and fuel gases from the refinery will be converted into low carbon hydrogen, with carbon dioxide safely captured and stored offshore in sub-surface reservoirs in Liverpool Bay. The hydrogen production hub will deliver clean energy to industry in the HyNet ‘low carbon cluster’, as well as to fuel buses, trains and heavy goods vehicles, to heat our homes, and to generate electricity when the sun is not shining or the wind blowing.
The UK’s first low carbon hydrogen hub will initially produce 3 terawatt-hours (TWh) of low carbon hydrogen each year from 2025. This will be quickly followed by a facility twice this size giving a total capacity of over 9TWh of hydrogen per annum, equivalent to the energy used for heating across the whole of Liverpool. A total investment of approximately £750m will be committed to deliver the two hydrogen production hubs. Follow on capacity growth is planned to reach 80% of the Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes by 20301.
The project will use Johnson Matthey’s best in class Low Carbon Hydrogen (LCH™) technology. In partnership with SNC-Lavalin, engineering is well advanced with funding provided by the UK Government’s hydrogen supply competition.
Chris Manson-Whitton, director at Progressive Energy said:
“We cannot reach net zero without decarbonising industry. Today brings a key milestone in that journey as Progressive Energy and Essar Oil UK sign a Memorandum of Understanding setting out how we will work together to deliver this exciting project at Stanlow Refinery.
“Delivering net zero requires a transformation of our energy system. HyNet offers a once-in-a-generation opportunity to create real change in energy production and consumption, creating a cleaner world for future generations. It will unlock the low carbon hydrogen economy in the North West, reducing emissions and creating and safeguarding jobs.”
Stein Ivar Bye, CEO, Essar Oil UK, commented:
“Essar is committed to innovative growth as a means to create positive impact to both economy and environment. HyNet and hydrogen production is integral to Stanlow’s strategy and will set it on a journey to be the UK’s first net zero emission refinery with the ambition to avoid emissions of over 2 million tonnes of carbon dioxide to the atmosphere per year, the equivalent of taking nearly a million cars off the road.
“With the support from government to establish the appropriate business incentives, together with Progressive Energy, we are committed to undertaking the development and the financing of its construction.
“Hydrogen has a central role to play in our low carbon energy solution. We are demonstrating that the industry is committed to play its part of the UK’s transformational hydrogen strategy.”
Leading bus manufacturing company Wrightbus is looking to a positive year ahead with the creation of more than 40 new jobs at its Ballymena headquarters, highlighting a positive impact of alternative fuel developments.
Wrightbus, which launched the world’s first zero-emission hydrogen double decker bus in 2020, has created the roles in preparation for increasing production of the vehicle this year to assist global net zero ambitions and support the PM’s pledge for at least 4,000 new Zero Emission Buses to be produced during this parliament.
A recruitment drive will see it employ 46 new members of production and office staff, including coachbuilders, spray painters, welders, electrical engineers, technicians, accountants, sales staff and a project manager. Nineteen of the positions will be apprenticeships, giving a boost to opportunities for young people in the region. And an international project engineer role has also been created as the firm looks to increase sales around the world.
With interest for the hydrogen double-deckers from UK cities and from around the world, Wrightbus CEO Jo Bamford said the new jobs would allow production to keep up with demand.
“There’s no doubt that 2020 was a challenging year for everyone for many reasons,” said Mr Bamford. “We have made huge strides in 2020, despite the year being paralysed by the coronavirus pandemic, yet 2021 is going to be the year hydrogen really makes its mark.
“At Wrightbus we have already launched the world’s first zero-emission hydrogen double decker bus and this year will see us deliver significant orders into London, Birmingham, Belfast and other cities across the UK, including in Northern Ireland.
“This recruitment will help us support the Government’s investment pledge for at least 4,000 zero emission buses on the streets of the UK.
“It’s thanks to this and other orders already in the pipeline that we’ve been able to create these jobs. We’re proud to be supporting the local economy and creating opportunities for young people thanks to the apprenticeships we’ve been able to offer.”
Fuel retailer Usman Patel recently celebrated 40 years of selling Texaco branded fuel at his three service stations in Greater Manchester. Usman owns the Mabco Group sites: Caroline Service Station, Lancashire Hill Service Station and Reddish Service Station. All the sites are located within 10 miles of each other in Stockport and have supplied fuel under the Texaco brand since Usman first became a tenant in 1980.
The oil giant Royal Dutch Shell is to cut 330 jobs from its operation in the North Sea over the next two years, with most of the posts based at its Aberdeen office.
Leaving around 1,000 people at the site, some of the jobs being lost will be linked to the project of decommissioning of the Brent Charlie platform, which is expected to be completed in the next two years.
The company announced in September that up to 9,000 jobs would go worldwide due to a slump in the demand for oil. However, the company insists that it remains committed to the North Sea and will continue to invest in operations.
The oil industry is already rethinking its future plans as part of the energy transition, and the impact of COVID means companies, like Shell, are accelerating this transition.
North West and Yorkshire based fuel supplier Craggs Energy has recently expanded its group of companies with the acquisition of Devon based fuel distributor Moorland Fuels.
OptiMate, MechTronic’s revolutionary electronic metering system has been built with the fuel oil operative in mind and is designed to be future proof. Using solid state firmware, the latest update provides increased control while performing line changes when switching between hose and bulk deliveries.
Centre Tank Services Ltd have added a new distributorship under their belt with the Aquafighter range of fuel tank water absorbers. The increasing bio content in today’s diesel means that the issue of water in fuel is not going away, and as the percentage of bio increases, it is an issue that is becoming even more prevalent.
Holly Needham, granddaughter of Jim Callow, the founder of Stourport-based Callow Oils, celebrated her 21st birthday by giving back to a charity close to the heart of the family, Parkinson’s UK. The charity has been extremely helpful to Jim and his family over the years since he was diagnosed with Parkinson’s Disease in 2012.
INEOS has completed the purchase of the global Aromatics and Acetyls businesses from BP for a consideration of $5 billion.
Already one of the world’s leading petrochemical companies this acquisition will extend both the portfolio and the geographic reach of INEOS. The businesses will be known as INEOS Acetyls and INEOS Aromatics.
INEOS Aromatics is a global leader in PTA (Purified Terephthalic Acid) and PX (Paraxylene) technology with 6 sites and supplies the global polyester business which includes polyester fibre, film and PET packaging.
INEOS Acetyls produces acetic acid and a range of derivatives from its 9 sites, supplying a wide range of downstream industries such as food, pharmaceuticals, paints, adhesives and packaging.
Sir Jim Ratcliffe, founder and chairman of INEOS adds:
“I am very pleased that we have been able to complete the acquisition, which is a logical development of our existing petrochemicals business extending our interest in acetyls and adding a world leading aromatics business supporting the global polyester industry.“
Organisers of UKIFDA EXPO 2021 have continued to monitor the situation in relation to Covid-19 and, following the UK Government’s recent national lockdown announcement, have taken the decision to move the event from 19th & 20th May to 7th & 8th July 2021 at the Exhibition Centre Liverpool.
Chief executive Guy Pulham announced:
“As you are all aware, COVID-19 is still presenting an unprecedented challenge with the situation evolving weekly. Changing the date was not an easy decision to take, but by doing so, we believe it helps ensure confidence in the event for our exhibitors and attendees. We wanted to move the date to a time when more people will be vaccinated and restrictions lifted so the news last week about the increased number of vaccinations allied to the government’s vaccination timetable means July will be an ideal time for the industry to get together for some much-needed networking.
“We have lots planned for UKIFDA EXPO 2021 including a great line up of speakers, together with both new and long-standing exhibitors in place. By moving the date to July, it gives our liquid fuels distribution industry a great opportunity to discuss and showcase the transition to liquid biofuels highlighted in the recently published UKIFDA decarbonisation strategy document available on our website.”
For more information on UKIFDA EXPO 2021, you can contact Dawn Shakespeare, UKIFDA membership and events manager, by email ds@ukifda.org or alternatively visit the show website https://ukifda.org/ukifda-expo/.
This new virtual challenge, Breakout for Ben – road to £1 million, follows on from Ben’s rallying cry last year asking industry leaders for urgent support, following a 50% increase in service demand against a £1m income shortfall. An incredible £530,000 has been pledged so far by automotive industry companies to help address Ben’s fundraising shortfall, however there is still some way to go to ensure Ben can be there for everyone who needs support.
Therefore, Breakout for Ben is the latest challenge to launch as part of the Do It 4 Ben fundraising programme, to help ensure no-one in automotive faces life’s toughest challenges alone. Originally an annual fundraising challenge for Ben by TrustFord, Breakout for Ben has now been opened up so the whole automotive industry can get involved and show their support, even during lockdown.
This year, Breakout for Ben will run from 5th – 14th February with socially-distanced teams of up to 10 covering 1,722 miles by exercising in their own way to fundraise for Ben. The event will see teams embark on a virtual journey visiting motor circuits across the UK, starting at Pembrey Circuit in north Wales and taking in all four home nations, before ending at Silverstone. Using an app, teams can track their progress together meaning they don’t need to be physically together with other team members during the challenge.
To find out more and sign up, visit: http://ben.org.uk/BreakoutForBen
Matt Wigginton, fundraising director at Ben, said: “Thanks to the incredible support of our industry, we are now on the road to raising £1m to help people in our industry when they need it most. This said, we still urgently need your help as we’re not there yet.
“Twice as many people are turning to Ben for mental health support and we don’t want to be forced to make tough decisions about who we can and can’t support. Automotive people need us now more than ever, as this period of unprecedented challenges continues. The issues people are facing now are more urgent and complex than ever.
“This is why we’re launching Breakout for Ben – road to £1 million. It’s a fun virtual challenge that anyone and everyone can get involved in!”