Two men from Great Yarmouth were arrested last week after HMRC dismantled a diesel laundering plant, capable of evading over £1.3 million in duty and taxes a year. Storage tanks, equipment, 1,500 litres of suspected laundered fuel and 4,000 litres of red diesel were seized during the operation. The men aged 40 and 30 have been released on bail and investigations are continuing. In Northern Ireland a 43-year-old man was also arrested at private premises in the Ardboe area where a laundering plant capable of producing over one million litres of illicit fuel a year, evading over £700,000 in lost duty and taxes was uncovered in a shed. A transit van and nearly four tonnes of toxic waste – the by-product of the laundering process – were removed from the site. Each year £480 million is lost to fuel fraud in the UK – anyone with information about this type of activity should contact HMRC on the Customs’ Hotline on 0800 59 5000.

David Fairchild, managing director of WP Group, with commercial director, Darren Borras, outside the company’s headquarters at Fawley WP Group has been ranked by ExxonMobil, operator of Britain’s largest oil refinery, as a top Mobil lubricants distributor across Europe, Africa and the Middle East. Each year ExxonMobil awards top performing distributors from around the world with ‘Elite Club’ status. Presented ‘gold’ just two years prior, WP’s repeat performance in 2014 recognises another “outstanding performance” in their field. Business excellence criteria for the top spot included sales growth, workforce development, operational excellence and marketing programme implementation. With a history that dates back more than 50 years, Southampton-based WP has a longstanding relationship with ExxonMobil and is one of three authorised distributors of Mobil lubricants in the UK. WP Group’s managing director, David Fairchild, commented: “The Elite Club Gold Award is testament to the continued investment the company is making into its lubricants business and the Mobil brand. To be recognised by as a leading distributor for ExxonMobil is a fantastic achievement and one that everyone at WP Group should take pride in.” Darren Borras, WP’s commercial director, added: “As recognition of our hard work and commitment, it is with great honour that we accept this esteemed award. With a focused leadership team and ongoing investment in talent, the board is committed to continuing the development of WP Group into an engineering led and solutions-focused, sustainable business.” Headquartered at ExxonMobil’s Fawley refinery, WP employs more than 100 people and has annual group revenues exceeding £200M. The family-run business is listed as one of southern England’s largest privately owned companies.www.thewp-group.co.uk

The Downstream Oil Industry Distribution Forum (DODF) has announced that more than 5,800 Petroleum Driver Passports have now been issued by the scheme manager, Scottish Qualifications Authority (SQA). Once all drivers have completed their current training, it is estimated that at least 6,500 drivers will hold the qualification. PDP has been developed by the DODF to cover those elements of knowledge and skill required by a petroleum tanker driver that are not covered by the current ADR scope. It includes an assessment of practical ability and has been designed to sit alongside existing ADR and CPC requirements with employers having the flexibility to run the training either concurrently or separately. Implemented in 2014, PDP was designed to have an annual refresher element so that drivers are not just trained and assessed once every five years. To maintain the validity of their PDP, drivers must undergo annual classroom training and pass a practical assessment, both of which are then registered with the Scottish Qualifications Authority. The DODF chair, Peter Oakford, commented: “Achieving this milestone is a testament not only to the focus on safety by the professional drivers and transportation companies within the UK, but to the benefits it bring to our industry in ensuring consistent high standards that are understood and accepted by all.” Ian Carruthers, Wincanton’s business unit director for fuels, commented: “Wincanton has around 450 tanker drivers, responsible for delivering over four billion litres of fuel across the UK, and the health and safety of our drivers, customers and the general public is of paramount importance. “The significant milestone of over 5,800 petroleum driver passports issued should be celebrated since it provides evidence and assurance that Wincanton’s commitment to safety is now shared across the industry with the PDP ensuring a common core of tested knowledge and competence in the loading, driving and delivery of petroleum fuels.”

Geos Group managing director Barry Newton, and project leader Liz Winship with Port of Blyth director Alan Todd, alongside The Shannon Fisher at the new terminal February saw the arrival of the first tanker at the newly opened marine fuel terminal at Port of Blyth. The tanker, Shannon Fisher, delivered the first cargo of just under 1,500 tonnes of marine gas oil which was transferred to the 15 million litre capacity tank farm recently completed at the port’s Bates Terminal. The facility, operated by the Geos Group, is expected to prove particularly attractive to vessels operating in the North Sea offshore energy sector, but is also available for servicing a wide range of other traffic. The Geos Group’s managing director, Barry Newton, said: “We are delighted to have completed the build and receive the first vessel at our new fuel terminal. The facility is a strategically important new asset and will enhance our bunkering services to existing and new customers alike.” Port of Blyth chief executive, Martin Lawlor, added: “This is another important step forward in the port’s growth plans and re-affirms our position as a growing offshore energy hub. I am confident that the terminal and partnership with the Geos Group will go from strength to strength, with future expansion of the facility a shared objective.” The £6+ million development at the Blyth Estuary has been supported by Northumberland development company, Arch, which has provided assistance through its business growth programme. The Geos Group is a marine fuel supplier with a £200+ million turnover, providing storage, supply and logistics solutions.www.geosgroup.com

HMRC officers uncovered a diesel laundering plant the shores of Lough Ross in Co. Armagh A suspected diesel laundering plant, discovered on a farm overlooking the shores of Lough Ross in Co Armagh, has been dismantled by HM Revenue and Customs (HMRC). Officers from HMRC, the Police Service of Northern Ireland and the Northern Ireland Environment Agency, searched the farm in the Crossmaglen area, where the laundering plant was uncovered in an agricultural shed. Officers also found more than 4.5 tonnes of toxic waste at the site. The plant is estimated to be capable of producing over 7.5 million litres of illicit fuel a year, potentially evading around £4.3 million in taxes and duty. Mike Parkinson, assistant director, criminal investigation, HMRC, said: “Every illegal laundering operation typically generates tonnes of toxic waste, leading to significant safety and environmental issues. The location of this laundering plant, on a farm overlooking Lough Ross, raises concerns around the potential pollution risks involved. “As taxpayers and local ratepayers, not only are we missing out on the stolen tax that ends up the pockets of the criminals, we are also paying the substantial clean-up and disposal costs.” Storage tanks, pumps and other equipment used in the fuel laundering process, along with three vehicles, have been seized from the site. A 52-year-old man has been arrested in connection with the investigation and has been released on bail. Investigations are on-going.

Adler & Allan’s mobile fuel polishing services Last week Adler and Allan exhibited at Data Centre World. This two-day event brought together data centre experts and service providers from across the globe. Adler and Allan advised on how to ensure data centres could keep running through fuel polishing and general tank services, as well as flood mitigation. Alan Scrafton, Group Marketing Manager, at Adler and Allan, explained: “With most data centres holding large amounts of fuel to feed generators as back-up power, it is vital that the quality and cleanliness of fuel within storage tanks is maintained to minimise the risk of blockage, contamination or fuel system wear. “In addition, flooding poses an ever-increasing threat to data centres. Businesses need to protect their assets, actioning risk assessments and implementing flood mitigation steps to minimise the damage flooding can cause. It is far better for businesses to be proactive, rather than reactive; think long-term and calculate the risk in order to protect these often essential facilities.” Adler and Allan can provide regular maintenance programmes to ensure fuel quality, helping to reduce downtime and maintenance costs. Its mobile tank cleaning service can treat from 3,000 to 100,000 litres of fuel per hour. The company also carries out flood risk assessments to establish a flood plan and then put in place the appropriate flood defences, ranging from lightweight demountable systems to its newest product, JBAR, a modular flood defence system which can also provide spill containment.www.adlerandallan.co.uk

Warrington-based Certas Energy has entered into a primary authority partnership with Warrington Borough Council. Introduced by the government in 2009, a primary authority partnership enables a local authority to work with a company to assist with compliance issues, provide advice and act as a point of contact for other authorities who enquire about the company. “Certas Energy aims to lead the way in its compliance and governance regime and in the way that we interface with regulatory authorities and with our customers,” commented corporate affairs director, Brian Worrall. “Joining Warrington Borough Council in this national partnership with Trading Standards ensures we have regular dialogue on any issues that arise, and this enables us to improve and refine our business practices for the benefit of all our stakeholders.” Cllr David Keane, board member for environment and public protection, explained further: “Through primary authority partnerships the council is able to give more consistent regulatory advice and enforcement for areas such as trading standards. The advice that we can give under the scheme also gives a business a level of legal protection and we can support on regulatory matters that protects those businesses in the event of any future regulatory disputes and assists them in making sure that any policies that they implement do not breach the law. “Since its launch, Primary Authority has had a great amount of support and figures from October revealed over 1900 businesses are in partnerships with nearly 140 local authorities across the country. “When a business chooses to enter a partnership it demonstrates a commitment to working with regulators. https://www.gov.uk/government/organisations/better-regulation-delivery-office

At the beginning of March the drug driving law changed to make it easier for the police to catch and convict drug drivers. It is now an offence to drive with certain drugs above a specified level in your blood – just as it is with drink driving. Sixteen legal and illegal drugs are covered by the law, including cannabis, cocaine, ecstasy and ketamine. The limits for all illegal drugs are extremely low – taking even a very small amount of an illegal drug could put you over the limit. The new offence will work alongside the existing offence of driving whilst impaired through drink or drugs. The penalties for drug driving are the same as for drink driving. If convicted you will receive a minimum 12-month driving ban; a criminal record; and a fine of up to £5000 or up to six months in prison or both. Through its THINK! Campaign, the Department for Transport stresses that the consequences of a drug drive conviction are far reaching and can include: job loss; loss of independence; the shame of having a criminal record; increase in vehicle insurance costs; and problems getting in to countries such as the USA. “Driving under the influence of drugs is extremely dangerous and can affect driving skills in a number of ways,” says the campaign. “Drug drivers can suffer from slower reaction times, erratic and aggressive behaviour, and inability to concentrate properly, nausea, hallucinations, panic attacks, paranoia, tremors, dizziness and fatigue. Driving in any of these conditions is a bad idea – not just for the driver but for their passengers and other road users.” think.direct.gov.uk/drug-driving.html

National road safety charity Brake is calling on drivers to slow down and watch out for children on foot or bike.

“LOR will be a smaller, but a higher converting and more profitable refinery,” says general manager Jacques Beuckelaers The Lindsey Oil Refinery (LOR) will be adapted, along with its logistics activities, to improve its efficiency and enhance its competitiveness by reducing its costs and cash breakeven. After having studied several options for the refinery in the past years, including a divestment, and encouraged by strong motivation of a competent management and workforce, Total has now defined an adaptation plan that will ensure a sustainable future for Lindsey Oil Refinery’s industrial and business activities within the Total European refining system. Up to 180 jobs are under threat; the government has said it ‘stands ready’  to work with Total to support those affected.“Total has developed a viable plan for the future of Lindsey Oil Refinery,” states general manager Jacques Beuckelaers. “The refinery operates in the most competitive market in Europe, which itself is facing strong international competition, rising costs, falling petrol and diesel consumption, and continued overcapacity. Modernisation programmes at Lindsey have yielded encouraging results over the last years. These efforts will be further consolidated by streamlining the refinery’s production capacity and organisation. With our solid industrial capabilities and our professional and dedicated teams, we will adapt the refinery to ensure its future: LOR will be a smaller, but a higher converting and more profitable refinery.” Throughout Europe, petrol and diesel consumption has continually decreased over the last decade. Although more than 10% of the European refining capacity has been closed in the same period, overcapacity remains and competition from overseas is growing. In this context, Lindsey Oil Refinery is facing lower domestic sales and lower utilisation rates which dangerously threaten its profitability.  www.total.uk

Only strong disciplinary action by the courts will act as a serious deterrent to those involved in the fuel laundering trade says the Freight Transport Association (FTA). The FTA has called for law enforcement authorities to make every effort in their attempts to shut down illegal fuel laundering operations following a report by the British-Irish Parliamentary Assembly (BIPA) that the number of border area fuel laundering plants and filling stations selling illicit fuel is ‘alarming’. Seamus Leheny, FTA’s policy & membership relations manager for Northern Ireland, said: “Every effort must be made to prosecute the owners of these fuel laundering sites who supply a minority of commercial goods vehicle operators in Northern Ireland, enabling them to use this saving to undercut the overwhelmingly compliant and legitimate operators across Northern Ireland.” In the Irish Republic the Irish Petrol Retailers Association (IPRA) has extended its quality assurance scheme for petrol retailers in counties Galway, Mayo and Roscommon. Designed to combat adulteration, David Blevings, IPRA spokesperson said:  “While the Irish authorities have had some success in curbing laundered fuel where agricultural fuel is illegally processed so it appears to be legitimate for consumer use, a new threat has appeared in the form of ‘petrol stretching’ where substances such as kerosene are used.  This has seen many motorists with damage to car engines.” FTA supports any joint enforcement by the authorities on either side of the border and suggests that additional means of prosecution should also be considered against fuel launderers or the owners of sites where this activity occurs such as environmental legislation enforced by the Northern Ireland Environment Fuel represents approximately 40% of operating costs for a haulage company, therefore the illegal fuel trade makes it harder for compliant operators, who purchase their fuel from legitimate sources, to make a sustainable profit, costing the Northern Ireland economy jobs and limiting investment and growth in the local logistics industry. The authorities must also pursue the consumers of laundered fuel, thus reducing demand for it and depriving the fuel launderers of their target market. www.ipra.ie www.fta.co.uk www.britishirish.org  

Inver Energy has negotiated major new funding facilities to fund the growth of its fuel import and marketing business in Ireland and the UK. The financing facilities include a €100m asset based lending facility and term debt and ancillary facilities of €15m. The asset based lending facility is the first of its kind in the Irish fuel sector and will fund Inver’s working capital requirements through the provision of a multi-currency revolving credit facility comprising letters of credit, inventory and receivables finance. The asset based lending syndicate comprises of Barclays, Bank of Ireland, BNP Paribas and Credit Suisse. Barclays and Bank of Ireland are mandated lead arrangers of the receivables and BNP Paribas is the mandated lead arranger for the inventory. The term debt and ancillary facilities are provided by the Bank of Ireland. Inver CEO Chris O’Callaghan said: “These new facilities will provide a robust, flexible and cost effective financing platform for Inver’s future development. We are very pleased with the support of a banking syndicate that combines the strength and expertise of major international banks with Bank of Ireland’s know how in the market.” FOR MORE NEWS FROM INVER ENERGY – SEE THE MARCH 2015 ISSUE – OUT SOON!

A diesel laundering plant, capable of evading £1.4 million in duty, has been dismantled by HM Revenue and Customs (HMRC) in a commercial premises in Sunderland city-centre. The laundering plant, with the potential to produce 2.5 million litres of illicit fuel a year, and an illegal filling station were uncovered earlier this month.  HMRC officers, accompanied by Northumbria police, searched the city-centre property and discovered the filling station, where it is suspected fuel was being laundered and sold to the public as legitimate road fuel. Forecourt pumps, 3,200 litres of suspected laundered fuel, tanks and equipment were seized during the operation. Investigations are continuing. Pat Curtis, National Oils Co-ordinator, HMRC, said:  “We believe that fuel was stored, laundered and sold from this property, without any safety precautions, endangering any motorist buying fuel there. “Motorists may think buying illicit fuel is a bargain, but you have no idea what you’re getting, and you can be sure that you are lining the pockets of criminals. We ask anyone with information about this type of activity to contact us on the Customs’ Hotline on 0800 59 5000.” Follow HMRC on Twitter at @hmrcgovuk.

Over half of the companies exhibiting at this year’s FPS EXPO in April will be introducing new products and services. Demand for space at FPS EXPO 2015, which takes place at the Harrogate International Centre on 22-23 April, has seen the event extend into another hall. FPS EXPO 2015 is the 35th year of the exhibition and the last event in Harrogate before the show moves to the new Liverpool Exhibition Centre next year.. Bulk fuel logistics companies, Brit European and Norbert Dentressangle Tankers are the latest companies to reserve a place and the event has secured its first tyre wholesaler, Treadsetters.  Other companies exhibiting for the first time include Applied Pumps, Cleansing Services, Paul Read Print, European Automation Projects, Samoa and KDC Contractors. Dawn Shakespeare, FPS marketing and events manager comments: “FPS EXPO is always extremely popular but 2015 looks set to be even more successful than our record-breaking 2014 event. “Having a first night exhibitor and visitor drinks reception on the opening night of FPS EXPO 2015 means that exhibitors and visitors can stay longer on the first day of the show and make the most of this fantastic opportunity, and individuals will now have a chance to network on an informal basis. “Visitors will benefit from exploring the extensive array of new and innovative products on display including tankers, testing and safety equipment, computer software and oil storage equipment plus all the necessary ancillary equipment – there’s much for visitors to the show to see,” added Dawn. “Visitors can compare the latest developments in tankers and oil distribution industry equipment, explore new technology, learn from industry experts, and talk with manufacturers — and each other — face to face.” For more information and to book your exhibition space or visitor ticket for FPS EXPO 2015, please view www.fpsshow.co.uk or contact Dawn Shakespeare on Tel: +44 (0) 1565 631 313 or Fax +44 (0) 1565 631 314 or email ds@fpsonline.co.uk  

Jeremy Hawksley – welcome news for the industry and the 1.5 million UK households who use oil for heating Oil is now the cheapest of all the major heating fuels, costing £119 less per year to heat an average three-bedroom home than mains gas, the second cheapest option. According to the Sutherland Tables, a recognised independent source of data on comparative UK domestic heating prices, the price of kerosene has fallen by nearly 30% over the past two years and it is the first time the price has fallen lower than mains gas since 2010. Cost comparisons and projections Comparing the cost of heating the same average home with either LPG or electric storage heaters – the other main heating methods used by off gas grid households – and oil remains considerably cheaper, currently coming in at 47% less expensive than LPG and 37% cheaper than electricity. Most analysts agree that the price of oil is set to stay low for the foreseeable future and this is supported by DECC’s most recent Fossil Fuel Price Projections Report which even forecasts the potential for further falls over the next three years. Jeremy Hawksley, director general of OFTEC, said: “This is welcome news for the industry and the 1.5 million UK households who use oil for heating. With sustained low prices forecast, we envisage many households currently using LPG and electricity will look to switching to oil. We may even see some mains gas households changing to oil, particularly if they need to replace their boiler.” Pie in the sky The reduced price of oil is also expected to further dampen demand for the Government’s domestic RHI scheme. The Sutherland Tables show that the running cost of electricity driven Air Source Heat Pumps are significantly greater than those of a condensing oil boiler. Even after taking into account RHI payments, running costs are likely to remain considerably higher. Ofgem’s Domestic Renewable Heat Incentive Quarterly Report published in November 2014 shows that in the first nine months of operation, the domestic RHI scheme has only attracted 2,402 new (non-legacy) accredited installations and, when launched, DECC’s initial impact assessment stated that the RHI aimed to support around 750,000 renewable heat installations by 2020. This equates to approximately 10,800 new installations per month so, with the current rate of take up, this target is clearly ‘pie in the sky.’ A more pragmatic approach In light of this, OFTEC has again been calling for more pragmatic approaches to be taken to reduce heating costs and CO2 emissions. The trade body has written to all the major political parties proposing the introduction of a simple boiler scrappage and energy efficiency scheme which gives financial incentives to all oil and gas homes so they can upgrade to a condensing boiler and full home insulation.www.oftec.org.uk

Campaigners led by Plumb Center, Honeywell and the Katie Haines Memorial Trust, want to see carbon monoxide alarms in every home in England and Wales when using any carbon burning fuel.

Last year’s StocExpo broke all records, attracting over 2,940 visitors, making it the most successful show in its history. StocExpo 2015 returns on 17-19 March at the Ahoy, Rotterdam, bigger still with an expanded show floor and its strongest ever conference programme and speaker line-up. Nick Powell, StocExpo & Tank Storage Portfolio Event Director commented on the show’s progress: “The momentum behind the show is absolutely fantastic. This is the 11th edition of StocExpo and in that time it has grown beyond all recognition, becoming the most important bulk storage event anywhere in the world and a must attend event for Europe’s terminal operators, oil companies, traders and regulators. We don’t take this position lightly. That’s why we have worked hard ensuring we’ve the best speaker line-up possible and a packed exhibition hall of top industry suppliers.” Over 200 major international exhibitors from right across the tank storage supply chain have already signed-up for the event and others are coming on board fast. The current exhibitors include A. Hak Beheer B.V, Kanon Loading Equipment, Emerson Process Management, Endress+Hauser, J. de Jonge Flowsystems, FOAMGLAS Industry, Lightning Master Corporation, CTS Netherlands BV, Dantec, Fabricom and Honeywell Enraf. With many exhibitors using StocExpo’s international reach to launch new technologies or make major announcements, visitors to the show will be able to see the absolute latest developments in tank design, construction & maintenance, metering & measuring, pumps & valves, automation & loading equipment and inspection & certification services. In addition to the exhibition, 150 senior decision-makers are expected to attend the paid for, three-day conference which runs throughout StocExpo. Last year 100% of delegates rated the content as excellent, and the organisers have worked hard to maintain this standard, with a line-up of 25 industry experts confirmed to speak. They include Erik Klooster, Head of Government Affairs Netherlands at BP, Urs Beckmann, COO at TanQuid GmbH & Co. KG, Didier de Beamont, Commercial Director at VTTI and Onur Capan, Manager at Wood Mackenzie. The speakers will be discussing the region’s critical issues – everything from market analysis, latest trends and developments, business opportunities and finance through to innovative new technologies, plus latest thinking on terminal efficiency, operational health & safety and cost reduction. For more information on visiting the exhibition, booking as a delegate for the conference or becoming a media partner, please call +44 (0)20 8843 8800 or visit the event website: www.stocexpo.com.

With the price of heating oil at a four-year low, Which? has taken another look at the heating oil market; a market that has seen a 23% fall in price between December 2013 and December 2014. Fuel Oil News provided Price Totem information for the article in which OFTEC ‘suspects that prices will remain low at least until March, and may indeed continue to fall.’ The article also contains a table of comparative costs of different energies including renewables being used to heat a three-bedroom home. Getting the best heating oil price Figures from Fuel Oil News Price Totem (based on ordering 1,000 litres of kerosene heating oil) showed a drop from an average of 56p per litre in December 2013 to 43p in December 2014. Looking more closely at heating oil prices, Which? got a small sample of quotes in January from online heating oil companies delivering to a postcode in the north and the south of England. On average, the price quoted was 39p per litre when ordering 1,000 litres of standard kerosene with standard delivery and a regular tanker. Aimed at heating oil users, the guide highlights a number of ways to keep the costs of heating oil down. The Which? news story and heating oil guide can be found at http://www.which.co.uk/energy/creating-an-energy-saving-home/guides/heating-oil/