News 52

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Valero strengthens supply in Northern Ireland market

Valero Logistics UK, a subsidiary of Valero Energy Corporation, has completed the purchase of DCC Energy’s fuel storage terminal in Belfast. With the purchase of DCC’s terminal, Valero will now have equity storage in Belfast, a platform from which the company can strengthen its supply position in Northern Ireland. “It was a natural step for us to buy DCC’s terminal,” said Mike Lewis, Valero’s vice president Europe product supply. “It anchors us in the Northern Ireland market and reinforces our long-term commitment to our customers there. It will give us added flexibility and will ensure we can continue to deliver a competitive and reliable service.” Valero has been using the DCC fuel storage terminal and the nearby NuStar terminal to supply its Northern Ireland customers, and will continue to use both terminals to supply fuel for the foreseeable future. “The two terminals will act as twin platforms from which we can provide our customers with a reliable supply of fuel,” added Mike. “For our existing customers, the change of ownership will be seamless – business as usual – while any new customers can feel confident they’ll get a reliable service, backed by the robust Valero supply chain centred on our refinery at Pembroke in Wales.” The fuel terminal has ten storage tanks for fuel oil and distillates. www.valero.com

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Oil NRG – to the ends of the earth

Going to the ends of the earth to help Borne Through its depots in Birtley, Hartlepool, Thetford and York, Oil NRG has lent its support to Borne, a medical research charity which aims to identify the causes of premature birth. Earlier this month a team of 10, including former English rugby player, Will Greenwood MBE, a Sky commentator, Borne Patron and friend of Oil NRG, embarked on a 10-day expedition. In one of the most extreme tests of physical and psychological endurance, the team traversed the last half degree to the North Pole crossing the frozen ocean to reach the ends of the earth. The team set a target of £1,050,000 with Oil NRG aiming to raise £2,500 to help save lives, prevent disability and give millions of children the chance of a full life, free of disability. Borne will use funds raised to support its vital research into the causes and prevention of preterm labour and births. To date Oil NRG has raised over £1,706 of its £2,500 fund raising target. “We would like to say a very big thank you to everyone who has donated so far,” said Oil NRG’s sales director, Jeremy Royle. “All donations will help – no matter how big or small!” To support Oil NRG’s fund-raising, please visitwww.justgiving.com/fundraising/oil-nrg  

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Supply chain and logistics UK crime survey

The Scottish Secure Parking Group (SSPG), of which the Freight Transport Association (FTA) is a member, is seeking views on secure HGV parking across the UK, but particularly in Scotland.  Having created a short survey, the SSPG is hoping to hear from industry including HGV companies, members of the public and other interested parties such as local authorities, government representatives and councillors. It is the first time, on a national basis, that the public, elected representatives and those involved in haulage and logistics will be able to provide an accurate snapshot of the situation as it currently exists at the moment. The SSPG wants to hear about incidents of crime directly or indirectly attributable to off-site, insecure parking and its impact on business and communities.  It is gathering evidence on whether the current lack of secure parking is impacting on the haulage and logistics industries as well as having a detrimental effect on local communities, and what needs to be done to improve the situation. The anonymous survey, which opened on Monday (23rd), takes about 10 minutes to complete and is open until Friday 25th May. The online survey can be found at: https://www.surveymonkey.co.uk/r/MQ2HK3Q The survey is not the end of the story, it is intended that the information will be used to inform further debate, discussion and ultimately action, to alleviate the current situation.

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New agreements with SEPA

Guy Pulham – the FPS has been active in voicing members concerns and lobbying government about the impact of changes to oil storage in Scotland Last month, the Federation of Petroleum Suppliers (FPS) met with the Scottish Environment Protection Agency (SEPA) regarding the introduction of new legislation which affects over 95 heating oil and fuel distribution depots across Scotland. The new legislation, which came into force in January 2018, has made changes to regulation for sites which store oils under the existing Oil Storage Regulations (OSR) (Scotland), such that they now come under the scope of the amended Controlled Activities Regulations (CAR). Voicing members concerns about the impact of the new legislation and the timings to comply, FPS was encouraged by positive dialogue during the meeting and has subsequently reached agreement with SEPA on:

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HGV road user levy changes – unfair hit on smaller businesses

The government’s amendments to the road user levy charges announced last month are another step on the road to improving air quality for all of us, but at the expense of small and medium-sized businesses, which will be unfairly penalised by the changes in money payable, says the Freight Transport Association (FTA). According to FTA the new charges place an increased burden on the small and medium sized businesses across the UK, delivering the goods and services needed to keep the economy moving: “The reduction of 10% in the road user levy for Euro VI lorries is good news,” says Christopher Snelling, FTA’s head of UK policy. “This shows recognition for the success of the HGV Euro VI vehicles, which have 80% lower real world local emissions than previous lorries.  However, the introduction of the increased levy on pre-Euro VI trucks will actually hurt those small and medium sized business that already face increased costs as many need to upgrade to Euro VI vehicle early to be compliant with the planned Clean Air Zones. “It hurts them because the re-sale value of their slightly older lorries, the Euro IV and Vs, has fallen so much – making the jump to afford a new Euro VI so much greater.” FTA believes the government should have loaded the increase on to older most polluting lorries (Euro III and below) to create a short-term market for the Euro IV and V vehicles that those delivering to city centres will be seeking to sell on. “Trucks have been getting cleaner for decades,” added Christopher. “We’re not dealing with an intractable problem but merely the question of how soon do the beneficial changes come.  The government’s approach to cleaner air risks putting some smaller hauliers’ livelihoods at risk for only a temporary gain on air quality.  The reform of the Levy was an opportunity to help, and for the most part the Government has failed to take it.” www.fta.co.uk

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Highlighting the importance of the downstream oil sector

UKPIA director general, Stephen Marcos Jones, attended the annual reception for the UK downstream oil industry where Martin Vickers MP acknowledged the sector to ‘be a valuable and strategic asset which we rely on in our daily lives’ The All Party Parliamentary Group (APPG) on the UK oil refining sector, in partnership with the UK Petroleum Industry Association, held its annual parliamentary reception for the UK downstream oil industry last month. “This successful event presented an ideal opportunity to highlight the importance of the downstream oil sector,” said Martin Vickers MP and APPG chair on the UK oil refining sector, who hosted the event. “This sector is a valuable and strategic asset and one with a long track record as a reliable supplier of energy, fuels and feedstocks for other industrial sectors and processes, providing the building blocks of countless products which we rely on in our everyday lives. “It is also a sector that offers incredible career opportunities. Through the APPG’s programme of events and roundtables, we have celebrated the extraordinary talent of the young people working in this sector and we continue to raise awareness of the exciting opportunities that are available to them within the downstream oil industry at every educational level.” “We were also delighted to welcome Claire Perry MP, energy and clean growth minister, as guest of honour and keynote speaker,” said Stephen Marcos Jones, UKPIA’s director general “Our sector plays a central role in spurring innovation, advancing technological breakthroughs and enabling our daily lives.  As we look to the future, we have work to do, together, to ensure that it can continue to deliver and thrive.”www.ukpia.com

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New TSA president

Paul Denmead director of terminal operations UK for World Fuel Services In late March Paul Denmead, director of terminal operations UK for World Fuel Services and vice-president of the Tank Storage Association (TSA) took over as president when Andrew Amos stepped down as president. To help with the implementation of TSA’s forward plans, Andrew has taken over Paul’s vice-president role for a period of 12 months. “As I have now retired from my position as projects director for UM Storage, it is appropriate that I also hand over presidency of the TSA to Paul Denmead,” said Andrew Amos. “The past 18 months leading the TSA has been a privilege and I have seen a dramatic change in the direction and growth of our association. Our status and visibility with government and related agencies has grown significantly which is critically important to serving the needs of our expanding membership. “I am confident that Paul Denmead and Peter Davidson will continue to drive forward change, ensuring that we continue to be the focus of knowledge and experience for bulk liquid storage and terminal operations. I will remain as vice-president of the TSA so that I can offer any support and guidance required.”www.tankstorage.org.uk

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Change of gear for Clugston

Fuel has become an important market for Clugston Distribution which has dedicated tankers providing a 24/7 service to the Immingham, Kingsbury and Tees terminals The Clugston Group will be taking the opportunity to showcase the entire Group’s capabilities at next week’s FPS EXPO in Liverpool.  Over the last three years, the company’s distribution and fleet management division has maintained a significant presence at the show. Using the broader capabilities of its construction, property development and facilities management companies, the Clugston Group can offer bespoke solutions to refineries, distributors and retailers of fuel. Offered as either stand-alone services or as an integrated package, Clugston has a long history of developing, building and maintaining process facilities and retail outlets across the UK. With a combined fleet of over 100 vehicles, Clugston Distribution entered the fuel market in 2012, with dedicated tankers providing a 24/7 service to the Immingham, Kingsbury and Tees terminals. The division’s commercial vehicle facility at its headquarters in Scunthorpe is also ideally located close to the terminals, carrying out vital servicing and repair work for all trucks and trailers in the area. A DVSA, Authorised Testing Facility, the Brigg Road Service Centre, has recently undergone a six-figure investment to extend its range of services to commercial fleet operators across the Humber and Lincolnshire region Tim Doggett, Clugston’s recently appointed director of distribution said: “Alongside a number of sectors, fuel has become an important market for the distribution division, and we are already recognised as a top ten fuel logistics provider. “With our wider expertise, however, we believe the FPS Expo provides the ideal occasion for Clugston to showcase the Group’s broader capabilities for the first time. “As a company we are always examining ways in which we can maximise market opportunities, whilst continuing to provide our customers with the excellent service for which we have become renowned throughout our 80-year history.”www.clugston.co.uk 

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Win a GoPro HERO5 with Mabanaft at FPS EXPO 2018

Mabanaft to showcase new online administration at FPS EXPO 2018 – the company is looking forward to attending this year’s event where they will be showcasing the latest development on Mabalive which allows their customers to manage deal administration online with real-time reporting. The new functionality (launched Q4, 2017) is receiving fantastic reviews, with customers saying it is easy to use, saves them time, and is the most advanced online system offered by any fuel wholesaler in the UK. Members of the Mabanaft sales team will be demonstrating the system on their stand to show how it works and the advanced level of reporting that it provides.

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Improving fuel quality and solving problems

One of FAST’s key objectives for 2018 is to engage with customers in terms of highlighting and identifying opportunities that are being missed or not exploited.

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EOGB announces support for OFTEC strategy

Burner manufacturer and distributor EOGB Energy Products has announced its backing for OFTEC’s proposals to decarbonise the UK’s 1.5 million off-grid homes by converting them to a low-carbon bio-oil, a goal that supports the government’s Clean Growth Strategy ambitions.

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Major investment at Belzona

Harrogate’s mayor, councillor Anne Jones, was in attendance at last week’s official opening of the new training and distribution centre which featured a ribbon cutting ceremony by Belzona’s president, Joel Svendsen and a professional bubble blower Celebrating its 66th anniversary this year, Belzona shows no signs of slowing down with the opening of a brand-new state of the art training and distribution centre. The Harrogate-based company, which provides industrial protective coatings and repair composites, ran 40 courses in 2017 for over 175 delegates from distributorships around the world.  The company still manufactures at its head office in Harrogate and exports to over 160 countries worldwide. The new £6 million facility will more than double Belzona’s current distribution area floor space, with 12 metres of usable height, adding around 4000 pallet spaces and 166,100 cubic feet of total floor area. The new training area features a fully equipped presentation suite as well as a new practical training/demonstrating classroom, showing Belzona’s continued focus on training and raising global application standards. “Here at Belzona we believe that training is vital to success,” said engineering director, David Blackwell. “Training empowers people to meet the demands made of them in the work environment and prepares them for the unexpected situations that life will throw at them. Belzona’s practical training courses are designed to enhance the theoretical aspects of Belzona solutions by placing them in a practical context. “This is a major investment in the future of Belzona, which will greatly benefit the local community, the distributors from across the globe, as well as the vast number of Belzona users.”

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Fuel Oil News 2018 Directory

FUEL OIL NEWS DIRECTORY 2018 FREE WITH YOUR MAY ISSUE OF FUEL OIL NEWS – OUT SOON EMAIL: ann@andpublishing.co.uk

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Go ahead for Valero’s CHP unit

The CHP Unit will help Valero’s Pembroke refinery better control future electricity costs and achieve greater energy efficiency Proposals to construct a Combined Heat and Power (CHP) Cogeneration Unit at Pembroke Refinery have been given approval by Valero Energy Corporation, following the Welsh Government’s decision to grant planning permission for the planned £127 million project. The 45-megawatt unit proposed by Valero will provide power for the refinery, as well as supplement the refinery’s steam demand, and is the first project of its kind to receive planning permission as a Development of National Significance process under the Planning (Wales) Act 2015. With the UK refining industry facing numerous challenges, the CHP Unit will help Valero better control future electricity costs and achieve greater energy efficiency. These changes will ensure refinery operations run more sustainably and that Pembroke – which is one of the leading employers in south Wales and one of Europe’s largest and most complex refineries – continues to be successful in the competitive global market. “Valero’s decision to approve our CHP Unit plans caps a year of tremendous effort to obtain approval for this major investment in the Welsh economy,” said Ed Tomp, Valero vice president and refinery general manager. “This project is at the heart of our plans to maintain the refinery’s long-term viability and help to secure future jobs in the downstream oil sector in Wales. Now that final approval has been received from the corporation, we will appoint a principal contractor to begin the construction phase and later this year hold an open day for local people to discuss job opportunities during the project.”www.valero.com/en-us/Pages/Pembroke.aspx 

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A future framework for heat in buildings: call for evidence

Chief executive Guy Pulham says the FPS is eager to engage with the BEIS consultation and is urging all members to submit evidence to help shape the future of our industry On 19th March the Department for Business, Energy & lndustrial Strategy (BEIS) launched a consultation period ‘seeking evidence and views on action we can take during the 2020s to phase out high carbon fossil fuel heating in off gas grid buildings‘ Evidence is sought from across society and, in particular, from consumers and the heat market – those using or working with fossil fuels and those using or working with low carbon alternatives.www.gov.uk/government/consultations/a-future-framework-for-heat-in-buildings-call-for-evidence The closing date is 11.45pm on Monday 11th June. The Federation of Petroleum Suppliers (FPS) has welcomed this dialogue with BEIS which follows a roundtable discussion on government plans to decarbonise heating from the 1.2m homes and 250,000 businesses across the UK currently using oil heating. The FPS and its members put forward their thoughts as to how they want to work with government, providing information and ideas on action the government can take to meet carbon reduction targets in off gas grid buildings including taking a stepped change approach to carbon reductions through a government supported nationwide scheme to replace older oil boilers with energy efficient condensing boilers, the development of a bio fuel and alternative research into hybrid systems. The FPS also highlighted the important role members play in supplying not only heating oil but also fuel for agriculture, construction, road transport, marine fuels and fuel for back-up generators for hospitals, schools, care homes and data centres. “The initial direction of the Clean Growth Strategy didn’t appear to be technology neutral, so it’s positive that BEIS is now consulting further and asking for ideas and information from the heating oil industry,” said Guy Pulham, FPS chief executive. “We recognise the government’s work to meet the 2050 carbon reduction target, but oil and – more long-term – a bio product, can be part of the phased solution. We can put forward an alternative, credible solution with government support to achieve genuine energy savings in the short term and CO2 emission reduction through research into bio fuels to smooth the changeover to a decarbonised heat supply.” “All our members have a vital role to play in helping the government reach the right decisions on the best way forward for off grid energy solutions. The government talks about our heating industry retaining its position as a world leader and we believe that with assistance with research and development incentives we can help to lead the change,” added Guy. The FPS has also urged BEIS to facilitate a dialogue with the full supply chain so that refiners, importers and associated industries, such as aviation, are also included.

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Alarm bells raised by ‘beast from the east’

“While OFTEC in principal supports government’s desire to reduce carbon emissions, this cannot be at the expense of energy security,” says Paul Rose, OFTEC chief executive The impact of the recent extreme cold weather on the country’s energy supply should raise important questions for politicians as they consider the pathways towards future decarbonised energy, says OFTEC. The concerns over maintaining electricity supplies and whether natural gas would run out during the big freeze were, in the main, unfounded. However, the situation could have been very different if the UK were heavily dependent on electricity for heat and transport as outlined in many decarbonisation proposals. A combination of prolonged extreme weather, low temperatures and low wind speeds would place an enormous strain on the grid’s ability to generate sufficient electricity from renewable sources. This, combined with the enormous spike in demand, could leave many consumers without heat, light or transport – just when it is needed most. “Fuel security should be high on the list of priorities when energy planners and politicians are thinking about how to decarbonise our energy needs,” said Paul Rose, OFTEC chief executive. “The recent cold spell put severe strain on natural gas supplies and both oil and coal were required to help produce power at the major power stations. “Many policy advisors advocate a shift to decarbonised electricity for our future energy and transport needs. However, relying on one fuel type may leave us vulnerable over the winter months, particularly during extreme weather conditions which are expected to become more commonplace in our increasingly unpredictable climate. “At OFTEC, we believe that no single solution can meet society’s future energy needs. Embracing a broad mix of energy sources would reduce risk and we advocate an approach which would see a combination of low carbon liquid fuels, gas, biomass and electricity, depending on which best suits the needs of the homeowner.”www.oftec.org

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Gearing up for FPS EXPO 2018

FPS EXPO 2018 will take place on 18th and 19th April – register online at www.fpsshow.co.uk Following a very successful second exhibition at Liverpool in 2017, FPS EXPO 2018 will once again take place at the Exhibition Centre Liverpool, on Wednesday 18th and Thursday 19th April with all exhibitors under one roof and a floorspace of over 8100 sq. metres.  Now in its 38th year, FPS EXPO 2018 will have over 150 companies from both the UK and Europe, with first time exhibitors Bunded Fuel Tanks t/a Weld Smart, GreenChem, Fairfax 3D Design, Cardfox Merchant Services, Normec S.r.l. The Oil Lady, Octane Holding Group and Storage Partners Sp.z.o.o. Ashdowne Oil & Chemical, Close Brothers Asset Finance, REDS Group, Cavagna UK, Talent Retention Solutions (TRS) and Wirehouse Employment Services. “Entry to the exhibition is free and the event normally attracts over 1200 visitors from around the globe, including the USA, China and Europe but this year the FPS is expecting to exceed those numbers,” said Dawn Shakespeare, FPS marketing & events manager. New FPS CEO Guy Pulham will be on stand 126 at the entrance to the exhibition and will be available to talk to visitors about the benefits of becoming a member of the trade association. Visitor registration is available online at www.fpsshow.co.uk. For more show information, please contact Dawn Shakespeare ds@fpsonline.co.uk. 

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An old trick of the trade

When a tanker overturned recently on a County Tyrone highway, a bar of household soap was called upon to stop thousands of litres of diesel spilling out.

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JET developments

The JET brand has recently added more sites to its growing network Top 50 Indies forecourt operator, Intake Developments, has renewed its fuel supply contract with JET.  With a 100% supply position, JET has been Intake Developments’ fuel supplier of choice for over 35 years now, making the operator, which operates 10 sites, one of JET’s longest-standing customers.  “Since John and Anne Campbell, the founders of Intake Development, started a relationship with JET over 35 years ago, we’ve been consistently impressed by their professional but friendly approach to any topic or challenge we’ve faced,” said Intake Developments managing director, Robert Campbell. “The JET image is immediately recognisable and very familiar to customers in our region and has been updated and modernised to stand out in the modern market. We appreciate the personable, friendly approach that all JET staff have for their business partners. “This latest supply contract sets us on the journey towards 40 years of being Intake Developments’ fuel supplier of choice,” added Carl Smaller, JET’s retail account manager, North East. Intake Developments is currently in the process of purchasing new rollover car washes and a group of new jet washes as part of the company’s ongoing commitment to providing best-in-class wash facilities to its customers. Work is also about to commence on forecourt resurfacing to improve safety and aesthetics of all ten sites. JET has also secured two new site wins – JET Barton Road Garage on the Shropshire-Wales border and Penny Newby Service Station in Scarborough. Since joining, both sites have been reimaged with JET’s latest image on the canopies, stanchions, pumps and pole signs, and both have opted to introduce JET’s SENTINELTM Diesel to meet customer demand for premium fuels.www.phillips66.co.uk/EN/jetbrand 

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Call for urgent heat policy intervention

“For too long now Government has recognised the interlinked issues of fuel poverty and excess winter deaths, yet the policy to address the problem remains painfully inadequate,” said OFTEC CEO Paul RosePhoto by ©Andrew Higgins 2017 Vulnerable rural households need improved energy efficiency to help safeguard against the unacceptable number of additional deaths that occur during the winter months, says OFTEC. Unsurprisingly, the elderly are most affected with more than a third of deaths, as detailed in the latest Office for National Statistics (ONS) data, caused by health conditions such as respiratory illnesses which are made worse by cold temperatures. The problem is further exacerbated in rural areas where a higher proportion of people live in fuel poverty and so cannot afford to adequately heat their homes to stay warm and well.

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Valero to purchase SemLogistics’ Milford Haven storage facility

The SemLogistics acquisition is expected to be completed in Q3 meanwhile at the beginning of February Valero-branded tankers began lifting product from NuStar’s Thames terminal as part of a long term commitment to the south east of England Last week Valero Logistics UK, a subsidiary of Valero Energy Corporation, and SemGroup Europe Holding, a SemGroup Corporation company, signed an agreement for the purchase of SemLogistics Milford Haven fuel storage facility. Situated across the Haven from Valero’s refinery at Pembroke, the facility is one of the UK’s largest petroleum products storage facilities with 8.5 million barrels of capacity for storing gasoline, gasoline blend stocks, naphtha, jet fuel, gas oil, diesel, and crude oil. Over 67% of the storage capacity is multi-product or dual purpose, giving Valero the flexibility to meet customers’ demands in the UK and throughout Northwest Europe. Additionally, Milford Haven will continue to operate as a third-party storage facility, offering storage options for third-party customers across the European petroleum markets. “This facility complements our Pembroke refinery and fuel terminals in the UK and Ireland, making it a natural fit for the company,” said Joe Gorder, Valero chairman, president and chief executive officer. “This purchase demonstrates Valero’s commitment to Wales and the UK, and it aligns with our strategy to grow the logistics business and reduce secondary costs,” added Gorder. Subject to customary regulatory approvals, Valero expects the purchase be completed in the third quarter of 2018. Valero also expects to retain the UK employees currently engaged in the business to be acquired.www.valero.com

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HOYER Petrolog announces new aviation fuel transport agreement in Scotland

This new aviation fuel transport contract is ‘a further progression in HOYER’S business relationship with World Fuel Services’ says Allan Davidson HOYER Petrolog has signed an agreement with World Fuel Services to provide aviation fuel transport in Scotland. As part of the agreement HOYER will deliver fuel to Edinburgh, Glasgow, Aberdeen, and Newcastle Airports from the Grangemouth oil terminal. The agreement will add approximately 13 drivers, four vehicles and £1.5m annual turnover to HOYER Petrolog in the UK. “This new agreement represents a further progression in our business relationship with World Fuel Services, a growing fuels provider in the UK,” says Allan Davison, operations director, HOYER Petrolog. The new agreement is set to commence on 1st May 2018.www.hoyer.uk.com 

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Partnership for Petro-Canada and Liverpool FC

Marking the start of the partnership – Olly Dale, commercial director at Liverpool FC and Tony Weatherill, managing director of global marketing, research and development at Petro-Canada Lubricants In a three-year deal made earlier this month, Liverpool FC announced Petro-Canada Lubricants Inc (PCLI) as a global partner. “We’re delighted to welcome Petro-Canada Lubricants as an official partner of Liverpool FC,” said Billy Hogan, managing director and chief commercial officer. “To partner with a global business that shares LFC’s values of ambition and commitment is incredibly exciting for the Club. We look forward to working with PCLI to create unique and exciting programs which will help us engage with our fans and their customers around the world.”

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Lords warn of Brexit threat to UK’s energy trade

Brexit puts the UK’s current frictionless trade in energy with the EU at risk. This is amongst the findings from the House of Lords’ EU Energy and Environment Sub-Committee’s report Brexit: energy security, published yesterday.