News 48

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Petroineos GasOil and Biofuel Workshop

A workshop hosted by fuel processing giant Petroineos at its Grangemouth refinery to discuss growing concerns that red diesel is causing damage to farm machinery saw a large turnout from those involved throughout the fuel supply chain. Having been made aware of increasing problems with both agricultural and industrial equipment Petroineos took the decision to host the workshop covering fuel quality and in particular, the addition of Biofuel to GasOil in a bid to find answers. A spokesman from Petroineos explained: “Petroineos, as Scotland’s only refinery, is a major, but not only, producer of GasOil for distribution across Scotland and has been engaged with stakeholders since the problems came to light at the beginning of October. “Petroineos manufactures fuels meeting or exceeding British Standards and has a rigorous testing and analysis process adhering to our ISO9001:2015 quality system requirements. All GasOil distributed from the Petroineos Refinery has met the requirements of BS 2869 Class A2. With widespread reports of issues including poor performance, blocked filters, low working hours before filter changes are required and injector failure there was speculation, particularly amongst the farming community, that the problems were being caused by abnormally high levels of biodiesel in the fuel.  However, independent tests of samples found levels to be within prescribed limits as set out in legislation. “We have received dozens of samples back from customers for analysis and everyone has met the required standard. We are confident in our systems, processes and product sold to market, but we are also aware of the issues being experienced which is why we arranged the workshop to bring all stakeholders together to find answers to the problems’ Attendees included representatives from NFU Scotland, Ringlink Scotland and UKIFDA as well as distributors and their customers ensuring representation from all involved in the fuel supply chain. A senior team from Petroineos including Daniel Brain, Commercial Manager – Marketing & Distribution and Russell Mann, Refinery Manager as well as members of the quality and technical team took the delegates through a short overview of Petroineos before getting into more detail with regard to the addition of FAME into fuel explaining what it is, why it is included, how it is blended and how the resultant biofuel is tested and quality assured before moving on to the potential issues with the use of FAME in GasOil A Q&A session then opened with the key question – What can be done going forward to address these issues? – and it quickly became apparent just how emotive this subject has become with many anecdotal stories and a real sense of desperation particularly amongst agricultural users. Those representing NFUS expressed concern about ‘the potential threat to the well-being of both livestock and their members’ with farmers becoming increasingly frustrated at their inability to carry out their jobs due to clogged filters causing machinery breakdown resulting in significant downtime and an increased financial burden. Many questions were asked of and fully and openly answered by the Petroineos team with regard to levels of FAME introduced, the nature and source of the FAME and the timing of increases to meet the increasing legal requirements of the Renewable Transport Fuels Obligation (RTFO). Despite the challenging discussions there was widespread appreciation that Petroineos had taken the initiative to bring all those involved together to seek a solution. The workshop left those present reassured that the fuel produced by Petroineos is up to required standard and with no doubt in their rigorous processes and commitment to their customers but the overriding feeling was that the standards imposed at governmental level through the RTFO may not be ‘fit for purpose’ and that the use of additives and good husbandry alone are not the solutions. With winter weather on its way driving a sense of urgency there was an overwhelming call for the immediate suspension of FAME addition at the current 7% levels until solutions to the end user problems are found as well as an expected frustration at the lack of immediate ‘solutions’ for distributors to take back to their customers. There was, however, a clear commitment from Petroineos to continue to act as a conduit for action with the support of all stakeholders. After the workshop a Petroineos spokesman communicated the plan, ‘We are committed to engaging with our industry associations – UKPIA, and Scottish & UK Governments. We have already held teleconferences with UKPIA and separately with appropriate Government departments, who have committed to review this issue as a matter of urgency. In order to assist Government with this review, we encourage both representative bodies present yesterday – NFUS and UKIFDA, to collate detailed information on the reported issues around equipment failures. We will continue to engage with all stakeholders on this important issue.’ A full report of the workshop and questions raised will be in the January issue of Fuel Oil news  

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UKPIA calls for action in energy manifesto

The UK Petroleum Industry Association (UKPIA) has launched an energy manifesto ahead of the December general election, calling on the next Government to take the actions needed to strengthen the UK’s economically vital downstream oil sector whilst supporting the industry’s evolution to contribute to ‘Net Zero’ carbon emissions goals by 2050. UKPIA’s energy manifesto, Action Not Words, highlights three key areas that need to be addressed in the next parliamentary term to ensure the continued success of the downstream oil sector – an industry that currently supports 300,000 jobs and £21.2 billion to GDP – whilst laying the policy framework that will enable companies to pursue the development of low-carbon energy solutions.

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Liquid fuels industry EXPO moves to Glasgow

In 2021 the UKIFDA EXPO will move to The Scottish Event Campus (SEC) in Glasgow.  In a two-year deal with SEC the 2021 and 2022 shows will take place on 19 & 20 May (2021) and 18th & 19 May (2022). UKIFDA EXPO has been at The Exhibition Centre Liverpool since 2016 and following feedback from the recent EXPO surveys, the UKIFDA team has spent time finding a venue that provides many of the benefits of Liverpool. These include excellent access for exhibitors and a venue close to amenities as well as venue that provides a flexible exhibition space that can accommodate fluctuating exhibitor profiles, at a cost that is beneficial for UKIFDA and the exhibitors. Feedback also suggested that the EXPO should move around the UK and Ireland on a more regular basis, which is why this is only a two-year contract. The base contract for 2021 is for 6,000sqm of exhibition space which is smaller than Liverpool. This means that all exhibitors at UKIFDA EXPO 2020 in Liverpool will have first refusal on space for 2021 ahead of the event being released for general sale. “It is 20 years since EXPO was last in Scotland, so we are excited about taking UKIFDA EXPO to Glasgow and to the SEC,” commented UKIFDA chief executive, Guy Pulham. “It will be sad to say goodbye to Liverpool next year, so let’s make it a great event!” “UKIFDA EXPO 2020 on 10th/11th June will see the exhibition celebrate its 40th anniversary and already over 55% space has been sold,” added Dawn Shakespeare, UKIFDA membership and events manager. “We are also finding that UKIFDA EXPO 2020 has received more interest this year from the renewable energy sector, associated component manufacturers and equipment suppliers to meet a new market of customers. “There is a real buzz about the show already and with the added interest from the renewable energy sector I am sure it is going to make for a very exciting show as we celebrate its 40th anniversary. It is therefore fitting that we start the next decade at a new venue.”

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Logistics industry concerns over sulphur surcharge

FTA Northern Ireland is concerned that businesses shipping goods via the Irish Sea are set to be faced with additional surcharges from shipping lines, which will make the cost of doing business with GB and Europe more expensive for Northern Irish businesses.  The additional transport costs – estimated by FTA to be around £21 million per annum – are attributed to the cost of adaptation measures to comply with the new sulphur oxides targets entering into force worldwide from 1 January 2020.  Mandated by the United Nations regulatory body for shipping, the IMO, these rules will require the sulphur content of marine fuel to be no higher than 0.5% (mass percentage). “Surcharges are a bad response to this change” says Seamus Leheny, FTA’s policy manager for Northern Ireland. “While the industry has been expecting increased costs as a result of the new rules around low sulphur fuel, a new surcharge mechanism seems unnecessary.  This is the new normal, so shipping companies should be including this in normal commercial pricing arrangements.” FTA is opposed in general to the use of surcharges in the shipping industry.  The Association sees these as an old-fashioned hang-over from a previous era.  Managing input cost changes is a normal part of business and can be dealt with through fuel cost adjustment factors, or just anticipating the likely cost to come and including it in contract prices. “These changes have been known about for a long time and could have been factored into all business plans for 2020,” added Seamus Leheny. “They are not temporary, nor are they different to what is being done anywhere else in the world.  FTA wants the shipping companies to move away from this approach as quickly as possible as we see no need for this additional charging mechanism.”

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Debating future energy and transport

The above topics will be among those being discussed today by two industry bodies – APEA Live and The Fuellers  

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Total and Harvest Energy enter into a fuel network agreement

Total has entered into an agreement with Harvest Energy, a member of the Prax Group, which will allow Harvest Energy to develop its network of service stations with the support and expertise of Total and to secure its fuels supply. The first Total service station will open at Thirsk in north Yorkshire before the end of 2019, with further deployment continuing in 2020. The Total outlets will offer the public and business customers the company’s full lineup of fuels and lubricants, as well as a broad range of products and services, including EV charge points. The agreement will also ensure closer co-operation for fuel supply, domestically with Lindsey Oil Refinery and internationally through Total’s trading portfolio. “We are delighted with this alliance with Harvest Energy, where we offer our partner reliable supply and customers gain access to our wide range of products and services,” commented Benoît Luc, senior vice president, Europe in marketing & services at Total. “We are pleased and excited that we have signed this partnership agreement with Total,” added Sanjeev Kumar, CEO of the Prax Group. “It is the culmination of many years of solid cooperation between our respective companies and I am sure that it will be extremely beneficial for all concerned.” Harvest Energy will capitalise on Total’s expertise to achieve its growth targets over the coming years and it is expected that the network’s appeal and services will lead to new partnerships with operators of dealer-owned service stations.        

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Oil Terminal 2019 – Tank farms and oil terminals: operation, modernisation, development

Oil Terminal 2019, the 14th annual technical conference and exhibition, will be held on 14-15 November in Saint Petersburg. The event, which has a long and impressive history, has proved to be one of the major platforms for sharing experience and for seeking out solutions to the main issues in the industry. For the last 14 years Oil Terminals annually brings together 350+ delegates from oil and gas trading, storage, and shipping businesses representing refineries, oil terminals, and ports from 25 countries including Russia, the CIS, the Americas, Europe, and Asia, as well as CTOs and CEOs from tank farms and oil terminals of Russia, Kazakhstan and the Baltic states.

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FREE guide – saving fuel costs and reducing emissions

FTA’s Logistics Emission Reduction Scheme (LERS) has recently launched a FREE guide to help all road operators to reduce their use of diesel. The guide, available on LERS’ website, provides readers with advice taken from industry leading companies on how to save money and lower emissions by reducing fuel use in their diesels fleets. The average emissions from LERS members are close to 13% lower per vehicle km than the industry average,” said Rebecca Kite, FTA’s environment policy manager. “For the most part, operators have achieved this reduction by using their existing diesel fleets more efficiently, rather than adopting alternatively powered vehicles. “At FTA, we recognise that not every business is able to transition to alternatively-fuelled vehicles; that is why we have identified from this research six quick wins to reduce fuel use. From reducing empty running and aerodynamics to route optimisation and telematics, there are steps operators of all fleet sizes and budget considerations can take; these techniques also have the potential to dramatically cut fuel bills. Different strategies will be more effective for different types of operations; this guide offers advice on where and when these options are appropriate. “FTA’s goal is to help all parts of the logistics industry save costs and reduce its environmental footprint, avoiding the future need for government intervention in our sector.” To view the guide, please visit  http://lers.org.uk/home/how-to-reduce-your-emissions LERS – lers.org.uk – is a free-to-join scheme which helps members record, reduce and report emissions.

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Road safety – top of the class

Pupils at Hoddom Primary School in Ecclefechan were very pleased to win a Certas Energy road safety poster competition held to mark the opening of the‘fechan Truckstop at Junction 19 of the A74(M).  

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Road Safety Week 2019 

18-24 November Road Safety Week is the UK’s biggest road safety event, coordinated annually by Brake, the road safety charity. Road Safety Week aims to inspire thousands of schools, organisations and communities to take action on road safety and promote life-saving messages during the Week and beyond. It also provides a focal point for professionals working in road safety to boost awareness and engagement in their work. If your business has plans for Road Safety Week do please get in touch with Fuel Oil News – jane@fueloilnews.co.uk Share with Brake at Twitter (@BrakeCharity and use #RoadSafetyWeek #StepUp) and Facebook  

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Jail sentences for sellers of illicit fuel

Five people, including the former owners of a Sussex petrol station have been sentenced for distributing and selling an estimated 4.8 million litres of illicit fuel to unsuspecting motorists, including haulage companies across the south east.

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New acquisition for UK’s largest independent forecourt operator

Top 50 Indies forecourt operator, Motor Fuel Group (MFG) has announced that it has signed an agreement to purchase the south-west of England forecourt operator, Symonds Retail Limited. The transaction is scheduled to close early November 2019. “We are particularly delighted with this transaction because in addition to their existing 10 operating stations we also have three ‘new to industry sites’ in the acquisition package,” commented Jeremy Clarke, chief operating officer at MFG. “Within the existing 10 stations, there are six BP branded, three Shell and one Texaco. The retail offer is split between Londis and Budgens with one station offering Subway and another one offering Greggs. “We intend to open the three ‘new to industry’ stations in 2020, all with an excellent retail and ‘food to go’ offer and with the important addition of a dedicated high power EV charging hub.” This acquisition will bring the total number of stations operated by MFG to 904, maintaining their position as the UK’s largest independent forecourt operator.

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Certas Energy’s ‘golden triangle’ partnership

On Friday 11th October, Certas Energy opened its latest HGV refuelling site at the Red Lion Truckstop in Northamptonshire’s ‘golden triangle’ of logistics for over 30 years.

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UK Fuels adds 133 Co-op sites to its network

UK Fuels and the Co-op have signed an agreement that will see the Co-op filling stations added to the UK Fuels network.  This will allow UK Fuels card holders to use their cards to purchase fuel at 133 Co-op sites nationwide. 

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New regional manager for Gulf Energy

Myra McPartlin, who joined Certas Energy from DCC in 2016, has been appointed to the role of regional manager in the south east of England Gulf Retail has appointed Myra McPartlin as regional manager, south East, replacing the long-serving Steve White who has retired. Myra, who was previously area business manager in Scotland, has worked more recently in the north West. Myra joined Certas Energy in 2016 from parent company DCC where, as part of the company’s graduate programme, she undertook a variety of roles. She is a graduate of University College, Dublin and then went on to successfully complete a Masters’ degree in business and management at Trinity College in 2014. “In a relatively short period of time Myra has proven her retail and managerial credentials and we are delighted to promote her,” explains Craig Nugent, head of dealer sales. “She will add further drive and enthusiasm to a highly experienced team, all committed to support our dealers and grow the Gulf network.” “It’s a fantastic challenge and I know I have a huge responsibility at this exciting time in the development of the Gulf brand,” enthuses Myra. “There is a great camaraderie in Certas Energy, and I shall continue to play my part as we drive the brand forward. Since joining Gulf Retail, I’ve really enjoyed my life on the road, meeting dealers and building long term and mutually beneficial partnerships and I look forward to replicating this within the south East.”

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Suttons showcases safety and innovation commitment

At a recently held event, Suttons customers were able to participate in a variety of workshops led by the company’s senior managers. The focus was on the organisation’s safety culture, compliance excellence and an innovative technology project with fleet telematics provider Microlise.

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Fluctuating oil price fuels growth

Hull-based J.R. Rix & Sons has reported a 21% rise in turnover in 2018, due to the integration of two new fuel businesses and the fluctuating price of oil.

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FTA and Unite respond to Operation Yellowhammer

Having worked closely with government over the past three years ‘to develop new trading processes for the UK’s businesses to use after Brexit’, the Freight Transport Association (FTA) reported that the Yellowhammer document showed that ‘there is still much that could go wrong and still much that has to be done to keep Britain trading effectively’. ‘Many of the details may seem trivial but are actually crucial to the successful protection and continuation of the UK’s supply chain, and industry needs key decisions to be made urgently to keep imports and exports moving efficiently.  ‘We are still very concerned by the risk that fuel supplies could be impacted, considering this would affect the movement of goods both domestically and internationally – at no point in the past three years of negotiations has any indication of this nature been made to us or our 18,000 members by government.’ See Operation Yellowhammer document here. Unite the Union’s alarm has grown after the publication of the Operation Yellowhammer document with the union accusing the government of suppressing vital information on the future supply of petrol in the event of a no deal Brexit. Unite is concerned about the future of all six UK oil and chemical refineries due to the government’s plans to introduce zero tariffs on European Union petroleum products in the event of a no deal Brexit, while tariffs would apply to UK exports. By destroying the level playing field and with the fact that most UK refineries are owned by companies based abroad, Unite fears that all the UK’s refineries will suffer from a lack of investment at best and complete closure at worst. Allowing cheap imports of petrol and other products into the UK, would in the long-term lead to an increase in costs and major strategic problems about the security of a supply, with the UK becoming entirely reliant on foreign refineries. Unite has been working in parallel with the United Kingdom Petroleum Industry Association (UKPIA) and the wider industry about these concerns but the government has not engaged with the sector’s fears. “This is a crucial matter for everyone in the UK and yet when the industry tries to speak to the government it is failing to engage,” said Unite national officer Tony Devlin. “Once again the government is flailing about, proposing to bring in troops to drive tankers which is entirely unnecessary but is not prepared to act to preserve the UK’s oil refineries, which are of crucial importance.”

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Grenadier to be built in Wales

INEOS Automotive has confirmed that the Grenadier will be built in a bespoke new manufacturing facility on a greenfield site in Bridgend, South Wales. The new utilitarian 4×4 has been named ‘Grenadier’ after the pub in which it was conceived.  Over 6,000 international fans and followers responded to an online poll to choose the vehicle’s name. Creating 200 jobs initially, and up to 500 in the long term, site development is now under way in support of a planned production start of 2021. “We have looked long and hard at possible manufacturing locations for Grenadier across the world with lots of good options to choose from,” said Sir Jim Ratcliffe, INEOS group chairman. “The decision to build in the UK is a significant expression of confidence in British manufacturing, which has always been at the heart of what INEOS stands for.”

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New look JET forecourt design – a welcome improvement

JET’s new forecourt design has received an overwhelmingly positive response from consumers and dealers alike. Feedback was gathered during a recent 12-site pilot of the new forecourt design. The pilot has now successfully completed, with two company owned and ten dealer owned sites taking part.