With ‘exciting plans to grow capacity and the potential to create more jobs’, Pace Fuelcare’s Kings Lynn depot is officially opened When Pace Fuelcare opened a brand new facility In Kings Lynn, more than 40 staff and guests, including the town’s major and the MP for North West Norfolk, were present to declare it open for business. Over £1.5 million was invested in the depot’s upgrade and modernisation, enabling it to play a key role as an operational hub to better serve Pace Fuelcare’s commercial, agricultural and domestic customers across East Anglia. General manager Simon Willis said: “We were delighted to welcome our local MP, Henry Bellingham, to our grand unveiling. The new site has state of the art storage facilities which are at the forefront of health & safety standards; this has increased the amount of product we can store and our capability to deliver to our customers as promptly as possible. We remain committed to our local area, both as a fuel supplier and a loyal supporter of community groups.” Henry Bellingham, MP for North West Norfolk, said “Pace Fuelcare is a highly respected company and has an excellent record, particularly delivering for rural communities. The depot already employs 22 members of staff, and has exciting plans to grow capacity with the potential to create more jobs.”www.pacefuelcare.co.uk

Jeremy Hawksley speaking about Oilsave and the fight for oil heating at the Fuel Oil News Distributor Debate earlier this month. See the March issue of Fuel Oil News for more details. The price difference between oil and gas has narrowed significantly. Three years ago oil was nearly 60% more expensive than mains gas but now it is just over 12% more expensive, based on using a condensing boiler. According to the latest quarterly data from the Sutherland Tables, the current annual cost of using oil to heat a three bedroom home is now 5% lower than the average cost reported over the last three years, whereas the same average figures for homes using gas and electricity show an increase in heating costs of 14% and 16.5% respectively.the price of oil has decreased by 2.18%. Directly comparing the price of heating a three bedroom home in January 2011 to January 2014 provides an even starker result and shows that electricity has seen the greatest price increase over the last three years at 38.89%. Similarly, gas prices have increased by 37.3% and solid fuels by 26.1% respectively, whereas in comparison, the price of oil has decreased by 2.18%. The substantial increase in electricity prices (38.89%) is especially notable as it means that renewable technologies such as air source (ASHP) and ground source (GSHP) heat pumps which run on electricity are becoming a much more expensive option to heat a typical home in Britain. LPG, used by some 170,000 off-grid households, remains the most expensive fuel, costing a three bedroom home with a condensing boiler £1,923 per annum compared to oil at £1,275 and gas at £1,136. “This is very welcome news,” said Jeremy Hawksley, director general of OFTEC. “This data confirms that the estimated one million households that use oil to heat their homes have benefited from relatively consistent heating costs over the past three years and are currently experiencing a small decrease in prices. “With the global oil markets stabilising and the supply of oil improving, we expect prices between heating oil and gas to continue to narrow – however, only time will tell on this. “Oil users also have the advantage of choosing when to buy their oil, such as during summer months when prices are often lower, as well as purchasing through oil buying syndicates to secure more competitive prices. The figures also show that a modern condensing boiler can reduce annual running costs by an average of £284.”

The 13th Tank Storage Association (TSA) conference and exhibition took place at Coventry’s Ricoh Arena in September. A well attended event, registration topped 400 and exhibitor numbers doubled to over 60. Focusing on HSE compliance and process safety management, the morning conference was chaired by Peter MacKay, managing editor and publisher of Hazardous Cargo Bulletin. The concensus among the first five speakers was that whilst the industry has come a long way, there is further to go.

“From an economic perspective, Immingham is a very important hub in the UK’s infrastructure,” says Keith L Jackson, director of Immingham Storage Company, part of Simon Storage. In addition to being home to Simon’s Immingham East and West terminals, the Humber Estuary has two refineries which together supply over 20% of the UK’s refined product – Total’s Lindsey and Phillips 66 Humber, the latter specialising in petroleum coke for export. The Associated British Ports’ (ABP) Immingham Dock & Grimsby Ports receive between 55-60m tonnes of cargo a year, of which approximately 22m tonnes are oil products. Immingham Storage handles large quantities of oil products, including many niche and specialised refined products. Fuels represent around 40% of the Simon business; a licence to store crude oil was surrendered in 2007 but recent enquiries may change this position. The two Immingham terminals operate via two deep water jetties with 6 berths owned by ABP; each can accommodate ships up to 50,000 DWT. Approximately 50 ships a month call at the West terminal to deliver or collect products, with 25 ships a month using the East terminal. Together, Immingham East and West comprise the UK’s largest terminal of its type, handling up to 1.5m tonnes of product a year with over 600,000m3 of storage. Growth in the East terminal, managed by Andrew Rhodes, has largely been both by organic development and by acquisition; an ex liquid sulphur terminal, the most recent purchase, was acquired three years ago. The terminal, with up to 14” import/export lines and easy-to-convert tanks, offers significant flexibility as recently witnessed by the conversion of some capacity to gasoline standard post Buncefield with Safety Instrumented Systems. The facility can offer food grade product storage, as well as pressurised chemical gases. Installed 18 months ago, the East has a holding tank for effluent which then feeds into a bioreactor tank for treatment before being discharged into the Humber under an environmental permit. The West terminal, which has a similar system in place, can additionally recover up to 250 tonnes of water per day for reuse in other applications. Fuel Oil News editor, Jane Hughes was invited to take a tour of Immingham Storage to see the operations first hand. Managing a capital intensive business Established in 1929, creosote was the first product stored by Immingham Storage at the West terminal before being exported to the USA. Like much of the UK’s terminal infrastructure, both terminals were largely developed in the mid-1950s. Texaco and Esso (sea fed from Fawley) had terminals in the area – both acquired by Simon as part of the development of what was to become the East terminal. It takes a 100-strong team, working 5 shifts daily round the clock 365 days a year to receive and deliver products, and to take care of routine maintenance, breakdown, out of service inspections and project work such as changing product in a tank or updating systems/infrastructure. Some projects, like a current one to replace electrical infrastructure, will end up costing over one million pounds and take up to four years to complete. Seeking to maintain a good level of control, project management work is handled internally, with Simon developing its own conceptual and then detailed design, tendering, selection of contactors and management of project delivery through to project commissioning and handover to the terminal. Over £2m is spent on capital maintenance projects annually, primarily to tackle ageing plant issues. In addition to the ‘routine’ tank inspections – there are 137 tanks in the West and 104 in the East. Keith told Fuel Oil News: “The big push is now on the site’s key arteries, its pipework.” Visual detailed checks, radiography and NDT techniques are among the methods used to identify corrosion, poor quality welding and other defect issues. At the West 95% of tanks are the original build although many have had major refurbishment work performed, including new floors and bases installed, as a result of the ongoing inspection and refurbishment programme. The cost to rebuild three tanks recently was £5m. Some ten tanks have been totally replaced on the West terminal alone as a result of this inspection programme. “This is the proverbial Forth Bridge – we’re constantly seeking to identify potential problems and then fixing them – making it a very capital intensive business,” explained Keith. “We audit ourselves and our contractors – we step in early to correct so that any identified poor practice, be it safety related or quality of delivery, is not allowed to escalate. This is a human intensive process and virtually a permanent construction site with up to 100 contactors on site at any one time. “For example, we’re currently studying the site fire system – which was built some 25 years ago. Life’s moved on so we’re assessing ours against current best practice and expect to spend a not insignificant sum on making the system fit for the next 25 years of its life.” With energy costs to run the sites a big consideration, a biomass boiler, rather than an oil one, is being considered for steam production. It is hoped that a mix of energy sources will give some protection against future energy price fluctuations. Coping with the legacy of Buncefield “The industry’s head went down in a big way post Buncefield,” said Keith. “Working with regulators, the industry took a long, hard look at how it conducted itself in order to learn from the incident. Simon, in common with the rest of the sector, has spent much time and money in improving technical competence as well as its infrastructure; we now have a much better structure in place to effectively control Major Accident Hazards as well as better and more demonstrable safety leadership. “Born out of Buncefield, the implementation of the containment policy has made a huge change around the site. New bund walls have had to be constructed extending up to three metres below ground. Boreholes enable regular samples to be taken to monitor groundwater quality and movement. We’ve spent over £2m on work so far at Immingham that is necessary to give us a licence to stay in business. Working in a changing storage world “The storage industry has seen a lot of change over the last few years; as oil and chemical majors have retreated, we’re working more with oil and chemical traders and wholesalers. The latter are part of a logistics chain rather than original manufacturers, meaning that customer technical expertise has dwindled and the level of contact and information quality has declined.” Simon does draw on in-house expertise – its safety team is headed by a chemistry PhD, and there are specialists in environment, mechanical, electrical/control engineering and human behaviour – and, being part of a larger group, there is usually someone with the right knowledge to help handle any new specialised product. The retail market has become increasingly difficult with an overall decline in consumption, and dieselisation of the car fleet. The UK is now a net importer of diesel and adding ethanol to gasoline, which is in oversupply, for RTFO purposes has exacerbated its market problems further. International product imbalances have removed traditional dumping grounds for gasoline from Europe. “It’s a buy one, get one free market, where gasoline is taken in return for a deal on diesel from UK refiners,” said Keith. “We are pleased that from a standing start, our customer, Prax Petroleum, has been successful in growing its commercial business here at Immingham against this background of a difficult market. “We’ve been reasonably successful in attracting new chemical business,” said Keith. “It’s a market dear to our hearts and one in which we have much technical expertise. REACH has had the effect of driving out hazardous chemicals from the market, particularly toxics. Regulatory pressure in Europe means it’s increasingly difficult to operate here; much manufacturing has gone to the Far East where there’s little equivalent environmental legislation. New world scale plants offer economies of scale and levels of manufacturing integration and sophistication that are simply not achievable in European plants that were often constructed in the post war period. Coupled with structural changes, manufacturing businesses closing, and supply contracts ending, it’s a sad reflection of a chemical manufacturing sector in decline. “In February 2014 COMAH, after amendment under SEVESO III, will classify fuel oil as Dangerous for the Environment. For a market that’s not great right now and has not been historically strong, this additional legislation will be another challenge. Traditionally a lower end product in the market, this new classification has the potential to introduce significant new costs to the storage of this fuel which is already seeing reduced volumes. “Marine fuel also has issues. As ship operators look to move away from heavy fuel oil as a result of SECA (Sulphur Emissions Control Areas), we face the biggest change since shipping moved from coal to oil. Government sponsored Navy oiling stations around the world provided physical impetus for the change from coal to oil burning ships of the line and the merchant fleet at the turn of the 19th century; now we face a new transition. LNG is mooted as the new marine fuel of choice but its storage, shipping and distribution are extremely difficult and hence expensive; there are no current standards for bunkering and little infrastructure on the ground and no national need to drive through change. LNG storage has been built in Rotterdam (GATE) and in the UK at the Isle of Grain, amongst other UK/European locations. However, these were not designed with ship bunkering specifically in mind or indeed any break bulk activity for onward distribution, although clearly these are under consideration now. Construction of smaller scale distribution and bunkering sites at other main UK ports is a possibility but we are a small island where typically no one wants LNG storage in their back yard. However Simon will look at opportunities in this field and, if there’s half a chance of making it work, we’ll explore the relevant avenues to develop concepts on a commercial basis.”

With most biodiesel currently traded through the Rotterdam barge market, one UK company has revealed ambitious plans to convince the UK that home grown biodiesel from waste is the way forward  Having set out to develop a ‘robust and flexible business model around low grade waste vegetable oils’, RGM Fuels (see page 6 Fuel Oil News July) is now in contract talks with several household names and fuel distributors. “We’re at the stage of finalising volumes and prices with companies,” entrepreneur and investor Gordon McLure, told Fuel Oil News editor, Jane Hughes on a recent visit. By combining waste with clever chemistry, Gordon, together with colleagues Dr Richard Jackson (PhD chemistry) and Dr Matthew Davies (PhD engineering), convinced investors of what RGM Fuels could bring to the market; a deal was signed with a private equity investor in 2011. “Using a system specifically designed to process waste vegetable oils, we set out to produce biodiesel from waste to a very high standard,” added Gordon. “Developed by Richard and Matthew, our unique technology enables even very low grade vegetable oils to be processed; arguably this produces the most sustainable biodiesel available.” High standards – convincing the market Historically focusing on virgin seed oils, such as soy and palm oil, much investment was made in the original biofuel market, then the food v fuel debate arose and the sustainable fuel image was tarnished. An emotive topic, the food v fuel debate together with quality issues over biodiesel made from waste cooking oil in what was then a cottage industry, left a poor perception of biofuel and the industry acquired a cowboy image. Low grade feedstock led to badly made biodiesel, quality issues and fuel degradation whilst a DIY biofuels market grew up with carte blanche to make a little bit of diesel without paying any tax. Branded as unsustainable, biodiesel quality was questioned with a multitude of reasons proffered as to why it should not be used. Distancing itself from this tarnished image has proved to be a challenge; but as companies increasingly look to support their corporate social responsibility policy, RGM Fuels reports that interest in biodiesel is growing again. “The transition from seed to waste feedstock saw huge variations in the quality of biodiesel so there was a lot of resistance to what was seen as an unreliable product,” explained Gordon. “If made properly biodiesel from waste is totally reliable; in fact it can have standards more exact than those for mineral diesel. Once barriers have been overcome, hoops jumped and trials undertaken, we’ve been able to convince people of the product’s worth.” Practising what it preaches, the team fuels its own vehicles with 100% biodiesel. “Presently, the B100 market is limited in the UK as the market is ignorant of its capabilities,” Matthew explained. Down on the farm A tree lined drive leads down to Quarry Hill Farm, the site of RGM Fuels first biodiesel plant, commissioned at the end of last year. Situated in the village of Lathbury in rural Buckinghamshire, the plant, which can produce up to 100 tonnes a day, was built as a pilot plant to prove the technology and the model. “Setting up a biodiesel plant is not for the faint hearted. It’s easy to make biodiesel, but it’s very difficult to make biodiesel well,” said Matthew whose enthusiasm for the plant, which he likens to a giant Meccano set, is infectious. With their specialist knowledge in chemical reactors, Matthew and Richard dismissed the expensive cracking and cooking method for esterification, favouring instead a reactor system that enables the use of a broader feedstock range which can be continually, rather than batch, processed. The system is also currently in use at plants in South Africa and in Memphis, Tennessee. “We’ve kept the process lean and mean – new state of the art equipment sits with secondhand tanks and by speeding the process up, batch quality is more easily controlled.” Nothing is wasted with the glycerine produced in the process also sold. “This plant was primarily set up for demonstration purposes, hence the secondhand tanks,” explained Gordon. “A new dockside plant is planned to allow us to scale up to a much larger production enabling product movements in and out by ship.” In the meantime, there are interim plans to expand the farm plant and/or buy an existing plant and convert it to run on RGM specific reactors.

“It’s amazing how things can improve when you really put your mind to it,” Mark Nicholls, general operations manager at NWF Fuels, told Fuel Oil News editor, Jane Hughes on a recent visit to the Group’s head office near Nantwich in Cheshire.

Ingoe’s brand new Tasca tanker Although still a young company, Rochdale-based Ingoe Oils has big ambitions. Liz Boardman spoke to managing director and company owner, Jordan Ingoe about establishing the business and his plans for future expansion.A learning curve Having bought the Fern Street Depot and existing fuel business in 2009, former industrial boiler engineer, Jordan, has taken time to immerse himself in the industry before really pushing the company forward over the last twelve months: “I am brand new to fuels,” he admits. “The last three years have been a massive learning curve for me. Although I already held Class 1 and 2 licences I’ve had to gain the necessary health and safety qualifications and ADR training and take on more staff.” In addition to long-standing yard manager, Chris Quint and sales manager, Stephen Gomersall, Jordan has recently taken on sales advisor, Janet Thornton and a full time tanker driver, Brian Leach, who is bringing many years of experience with him, freeing up his time and allowing him to concentrate on developing the business further along with his partner, Rebecca who is also director and company secretary. “Over the last few months we’ve had some stumbling blocks to overcome and I’ve been doing all of the deliveries, but now I have a full-time driver, I can really focus on moving the business forward and increasing deliveries over the winter.” With 70,000 litres of storage in brand new tanks from UK Bunded Fuel Tanks, fuel is currently bunkered in by BWOC and Tate Fuels. However the company has now started pulling out of Manchester Fuel Terminal.

“Cultivating and nurturing a positive safety culture takes time and effort” says Jamie Elliott, human factors specialist, HFL Risk Services  Safety culture is essentially an organisation’s collective attitudes, values and behaviours towards safety. Put simply it is “how we do things around here” and in particular “how we do things around here when nobody’s looking.” As companies working within the high hazard industries, oil and fuel operators’ safety policies are governed primarily by the COMAH (control of major accident hazards) regulations. Under these, operators are required to ensure that major accident risk potential remains as low as reasonably practicable. However, just because a company complies with industry safety regulations, it does not necessarily follow that it has a positive safety culture. A staged progression – individuals, frontline workers, managers, directors and the board Safety culture is often described as progressing through a series of stages. Early stages of safety culture maturity involve a focus on technical and procedural solutions to safety problems. When an incident occurs, the aim is often to find out who was involved. As the organisation matures, managers increasingly realise that a wide range of factors cause accidents and that the root causes often originate from management decisions. This is where knowledge of human factors plays a key role. By understanding the individual, job and organisational factors that influence frontline workers’ performance, we can analyse individual human failures and determine what can be done to prevent them recurring. This moves the focus away from the individual who was in the wrong place at the wrong time, to look at what managers can do. At higher levels of safety culture maturity, both frontline workers and managers co-operate proactively to prevent accidents and their root causes. So managers and frontline staff can drive safety culture from the bottom up by improving understanding of human and organisational factors throughout the organisation. However, there is growing recognition that safety culture needs to be driven from the boardroom. Moreover employers in high hazard industries are increasingly being called upon to demonstrate organisational competence in process safety management. The UK Health & Safety Executive states that ‘Directors and boards need to examine their own behaviours, both individually and collectively’. Business leaders need to get out and talk to staff at all levels about process safety. Setting Process Safety Performance Indicators (PSPIs) can be a structured way to do this. To be able to have these conversations, leaders need to have sufficient understanding of process safety including the root causes of accidents. If this is lacking then a first step is often to improve process safety competence at senior levels, not just in operations but also business support functions such as maintenance, HR, finance and quality at site and group level, as well as amongst non-executive directors. Taking the time and effort to cultivate and nurture a positive safety culture will pay dividends not only in terms of overall site safety, but also in profitability since the two are very closely linked. HFL Risk Services, which took part in last month’s Tank Storage Association exhibition and conference, offers nationally recognised qualifications for continuous improvement in process safety for senior managers and senior executives. www.hflrisk.com

European diesel and heating oil prices will be supported by a heavy autumn refinery maintenance schedule that is already prompting some interest to store product. But storage economics are looking uneconomic going forward, threatening thin cover for the winter, writes Chris Judge, senior products editor at Argus Media. Whilst faltering economic growth in Europe in general, and in the UK in particular may improve diesel demand, the picture across Europe is still not encouraging for sellers. The first half of 2013 Over the first half of the year diesel demand limped along, rarely achieving the margins sellers had hoped for at the start of the year, despite short episodes of market tightness. The weak demand in Europe is underlined by car sales that have been falling almost continuously for nearly two years, with supply boosted by refinery upgrades. More spot diesel volumes were expected from Spain and Greece, while Israel’s ORL started up a new 25,000 b/d hydrocracker at its Haifa refinery, Portugal’s Galp launched its own 43,000 b/d hydrocracker, and a slew of Russian refineries worked on expanded diesel production. Nagging concerns over margins meant that European refineries – particularly those in the Mediterranean – continually trimmed output, keeping buyers on their toes, especially through the summer months. Heavily reliant on imports Refinery maintenance dominates on the supply side with weak motor fuel demand dominating on the demand side. A key source of winter diesel, Swedish refiner Preem’s 220,000 b/d refinery in Lysekil, Sweden, closed last month for six weeks of scheduled maintenance. Also on the docket for autumn works are Exxon’s 246,000 b/d refinery in Antwerp and unspecified units at BP’s 400,000 b/d Rotterdam refinery, and a variety of key Russian plants. The UK is heavily reliant on imports from Europe following the closure of Russian product exports are expected to fall sharply from September to November as a result. The total capacity loss is forecast at 5.4mn t, with most of the cut coming in September-October, compared with 3.75mn t off line during the 2012 turnarounds. Demand concerns persist. The seasonal downturn in driving and agricultural consumption is compounded by weak economic growth in Europe and forecasts that western Europe’s automotive market will not begin to grow again until at least 2019. That said, demand figures for the first half of 2013 were mixed. In much of northern Europe demand continues to grow, albeit at unspectacular rates – up 3% year on year in the first half in Germany and up by 2% in the first five months in Sweden. Troubled Mediterranean Europe saw drops of 6% in the first five months in Spain and 3.3% in Italy. While traders and refiners expect the maintenance programme to provide support, it does not match the abrupt loss of 600,000 b/d of refining capacity with the insolvency of European refiner Petroplus early in 2012, when autumn premiums to the benchmark Ice gasoil surged to nearly $60/t and diesel’s crack spread against Brent surpassed $25/bl. With the sale of all but one of the Petroplus refineries – the 146,000 b/d Petit Couronne in France seems doomed to permanent closure – most of the company’s former capacity is now back on stream. And, despite the general agreement that there is refining overcapacity in Europe, optimism over longer run prospects for diesel is driving plans for capacity additions; Italy’s ENI has already restarted its idled 105,000 b/d Gela refinery in Sicily. The company has also announced a €700mn investment plan, including diesel maximisation, in a bid to return the loss-making plant to profit.

Reliable equipment ensures the safe delivery of fuels to Callow’s rural customers across Worcestershire, Herefordshire, Shropshire and Oxfordshire Callow Oils new Lakeland tanker features discharge equipment from Alpeco. Director James Callow chose Alpeco’s dry line metering system with TE550 unit which automatically closes the manifold before finishing the delivery and triggers an automated blow down of the hose when the delivery ticket is printed, minimising the possibility of contamination. “We specify Alpeco for several reasons,” explained James. “The product range offers technical excellence and reliability at a competitive price, whilst the sales and design staff are always available to discuss another project with us.” The new truck joins the distributor’s extensive modern fleet which is all fitted with Alpeco products. Adrian Baskott, Alpeco’s sales director, added. “I’ve long believed that good products almost sell themselves but that said, we never rest on our laurels. We invest a lot of time and money in developing better products and services. The company is also a great believer in training its staff to be responsive to clients’ needs. Long term relationships help enormously as we better understand the clients’ business and how they work. We are proud to have been nominated yet again to supply product for the latest Callow Oils delivery tanker.”

Oil customers should get their boiler checked annually by an OFTEC registered technician and fit a carbon monoxide detector in their home says OFTEC’s Malcolm Farrow This year’s Carbon Monoxide Awareness Week starts next Monday. To reduce any risk of carbon monoxide poisoning, oil consumers are being urged to get their boilers checked by an OFTEC registered technician before winter sets in.

A laundering plant capable of producing more than 16.4 million litres of illegal fuel a year, and potentially evading around £10.6m in taxes and duty, has been dismantled by HM Revenue and Customs (HMRC). Officers from HMRC, the Northern Ireland Environment Agency (NIEA) and the Police Service of Northern Ireland discovered the plant within a tank storage area in Crossmaglen, South Armagh and seized 73,000 litres of fuel. Two tankers, one transit van, and over and underground tanks were also seized, whilst 20 tonnes of toxic waste, which was also found at the site, is being dealt with by the NIEA. John Whiting, assistant director, criminal investigation, HMRC, said: “Every illegal laundering operation typically generates tonnes of toxic waste, involving significant safety and environmental issues. 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. “Buying illicit fuel funds crime and supports and encourages these dangerous activities within our communities. The only winners are the criminals. I would urge anyone with information on fuel misuse in their area to contact our free telephone hotline on 0800 59 5000 and contribute to the fight against this criminality.”

A positive year for the company, despite challenging conditions says CEO, John Sutton Suttons Group recently reported a 4.1% increase in revenue to £154.7m for the year ending 30th April 2013. Despite adverse economic conditions in Europe and the US, the Group continued to grow as a result of its range of services and the geographical diversity of its operations. Sutton’s focus on efficiency and utilisation also led to operating profit growth of 7.1% to £8.4m. The company’s UK division, incorporating road tankers, warehousing and drumming operations, saw growth from new and existing customers. The Group also replaced a number of its vehicles and road tankers, representing a considerable investment in the future development of the Road Tankers division. CEO, John Sutton, said: “This last year has been positive for the Group. We have increased our turnover, margin and operating profit despite challenging conditions. We have also invested significantly in both our UK road tanker and international ISO tank fleets, ensuring our customers continue to receive the highest standards of service in the industry. “Highlights of the year include new business wins and contract extensions for our UK Tankers Division, significant progress in Asia and an important contract for our joint venture Suttons Arabia.”

Chairman of the executive board, Hervé Montjotin, reports an ‘encouraging increase’ in Norbert Dentressangle’s business activities Norbert Dentressangle reported revenues of €2,959 million for the first nine months of 2013, up 2% on the previous year. Hervé Montjotin, chairman of the executive board, said: “In line with expectations, Norbert Dentressangle is reporting an encouraging increase in its business activities for the first 9 months of 2013, primarily driven by a return to growth in the 3rd quarter. “In particular, our Group is taking advantage of its now significant exposure to economies which are growing at a faster rate than that of France. The transport business returned to growth in the 3rd quarter. The logistics business reported robust growth which is accelerating thanks to a sound commercial momentum in its European markets, the launch of the businesses with our customer Danone in Saudi Arabia and in Russia, and the consolidation of Fiege’s businesses in Italy and Spain.”

As the domestic market tails off over the summer months, for many distributors, it is their agricultural business that picks up speed. Below Liz Boardman looks at this market’s seasonal peaks and troughs and asks whether agricultural shows are still the best place to do business. A changing market? An important sector for Fuel Additive Science Technologies (FAST), agriculture accounts for 15% of its overall business. FAST manufactures a number of agricultural products including fuel upgrade, Gas Oil Extra; fuel soluble biocide, Anti Bug; fuel stabiliser, Fuel Store Plus; and online injector and fuel system cleaner, Diesel Power Restorer. Neil Ryding, FAST’s managing director, believes that the market has seen a significant shift in the last few years: “In January 2011, the market changed hugely as the sulphur content of red diesel was reduced to a level matching white diesel, and the allowable biodiesel content was increased. This has had a knock-on effect on fuel performance in modern engines and fuel storage conditions.” “The market has changed dramatically,” agrees Consols Oils managing director, Kevin Bennetts. “Fewer of the larger farms are using bigger volumes, whilst very aggressive competition has degraded margins and service levels. Good service is paramount and is winning the war of attrition – treat customers fairly and most will reciprocate.” In Cumbria, however, the market has been relatively static, as Carrs Billington’s Derek Wallace reports: “I don’t think the market has changed too much; although an increasing number of agricultural contractors are doing more of the seasonal work. With bigger equipment, they can get the job done within a day or two of fine weather.” Managing peaks and troughs Whilst traditionally summer and autumn are the busiest times for the farming community, FAST supplies product all year round; although there is a marked increase in demand from July to October. With five depots spread across the north of England, Carrs Billington experiences demand at different times, in different areas. ”Our Hexham depot supplies more gas oil at harvest time due to the number of arable farms and better harvest conditions, whilst Cumbria’s better suited to growing grass and is busiest at silage time in late May and June, and again at the end of summer,” explains Derek. At Cornish distributor Consols Oils, volumes peak at harvest times. “Service levels are crucial, but fuel is always being used so life goes on. Fortunately there’s usually a very clear division between peak gas oil volumes and heating oil demand,” adds Kevin.

Insurance issues Andrew Dix, partnerships manager at OAMPS, believes: “There are many risks involved in the distribution and haulage of fuel. Whilst there is the fear of an accident on the road, there is also the additional risk of a product spill or crossover and it is crucial to consider the safety of your staff. Ensuring that insurance policies are suitable is a major responsibility for companies. “There are a number of specific issues for fuel distributors or hauliers to consider when purchasing insurance.

The installation of the giant new regenerator head will give the refinery unit another 25 years of life Essar Oil (UK) recently completed the successful lift of a giant new regenerator head for a key petrol producing unit at its Stanlow refinery. Part of a £23 million refurbishment project, the 428 tonne steel head was lifted 225 feet before being guided into position on the refinery’s flagship residue catalytic cracking unit – the largest of its kind in Europe. The operation was completed in just over five hours, using a 335 ft tall crane with a 1,500 tonne counterweight for the lift. The regenerator head, complete with refractory lining and cyclones, is the largest that has been fabricated and transported in the world. It is a key element of the residue catalytic cracking unit, vital to Stanlow’s annual production of three billion litres of petrol. Its installation will give the refinery unit another 25 years of life. Chief executive officer, Volker Schultz, said: “This is another major investment in the refinery and part of our strategic plan to ensure we can be sustainably profitable and growing moving forward. The lift was a complicated piece of engineering and I want to pay tribute to everyone involved that it was completed safely and ahead of schedule.”