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.”

There was a warm welcome for Jet authorised distributors at Phillips 66’s 2013 conference Earlier this month Phillips 66 welcomed customers – including authorised distributors – to its 2013 conference at Gleneagles, Scotland. Pete George, managing director of UK & Ireland marketing reiterated the company’s commitment to the market: “We recognise that we operate in an increasingly competitive market, but we have big ambitions and we wanted to use Gleneagles as an opportunity to reassure our wholesale customers that we are here to stay.” Refining and large-scale investment in cleaner fuels were also on the conference agenda.Read more about the event in the November issue of Fuel Oil News.

Cameron Forecourt’s TLS electronic gauges and environmental monitoring systems can keep a round-the-clock eye on fuel stocks “With around 3,000 incidents involving oil and fuel spills reported each year by the Environment Agency, the message is clear,” says Cameron Forecourt’s sales and marketing director, Martyn Gent. “Regular, planned maintenance is a far better policy than ad hoc repairs that amount to a forced purchase. Major incidents cost the owners of faulty or leaking installations an average of £30,000 each in fines and clean up costs. Fuel supplies need to be both safe and secure and operators need a clearly defined plan for regular maintenance, security and contingency in case of emergency,” adds Martyn. Cameron’s TLS range is capable of accurately detecting fuel stock depletion. Any unexplained reduction in stock deviations triggers an alarm. By linking to advanced fuel management systems, emergency messages can be sent instantly via SMS to enable immediate action. The company recommends regular inspections and maintenance – at least annually – to ensure that equipment is maintained in serviceable condition with tanks, pipework and dispense pumps all checked for leaks or potential problems. Cameron also offers comprehensive environmental surveys to assess and minimise risk, check legal compliance and offer the optimum most cost-effective solutions for any necessary remedial work. More than 30 engineers operate nationwide to provide contract and emergency service to customers with all types of fuelling installation. Cameron aims to have an engineer on site within 8 working hours for repairs and sooner for sites that are out of action or have possible environmental issues. www.cameron-forecourt.co.uk

Bulk storage tanks can now be equipped with an innovative fuel quality treatment process thanks to a distribution agreement secured by Oil Tank Supplies (OTS). Based on E3 PLUS nanotechnology, the process is used to re-energise stored fuel by passing it through a recirculation system attached to the storage tank. Traditional fuel treatment packs supplied by OTS are designed to maintain fuel quality, post-delivery. This is achieved by re-circulating the fuel through two stages of filtration to remove particulates and water held in suspension. “The significance of this new technology is that we can provide a process which not only inhibits any degradation in quality, it actually reverses degradation, bringing the fuel passed through the system back to freshly refined spec, and restoring its calorific value,” explains sales director, Steve Gain. “The key benefit of incorporating the E3 PLUS Fuel Performance Unit is that it will eliminate the build-up of sludge deposits. By removing sludge from tanks we negate the customers need for expensive manned entry tank cleaning and the associated health and safety and other downtime issues.” An in-line device, it houses an insulated chamber specifically designed to reflect and intensify E3 PLUS emissions, altering and stabilising the fuel instantaneously as it passes through. This solution not only helps to prevent post-delivery contamination it also refreshes the product during storage.

Barnaby (kneeling on left) with Wincanton’s Driver of the Year category winners Fuel tanker driver Barnaby Moverley has been crowned Wincanton’s Driver of the Year. Now in its eighth year, the competition saw 28 of Wincanton’s best LGV and FLT drivers go head to head in a test of their manoeuvring skills and driving competency with events such as blind man’s bluff and ten tilt bowling. After a day of tough competition, Barnaby, a driver on one of Wincanton’s fuel contracts with 16 years service, was awarded the prestigious LGV Driver of the Year accolade. Chief executive, Eric Born commented: ”The competition is a fantastic opportunity to showcase the skills and professionalism of our drivers, who play an integral role in delivering excellent service to our customers whilst maintaining the upmost levels of safety.”

With just under a month to go until Road Safety Week, employers are being encouraged to get involved.

Ed Davey Following the announcement that Grangemouth is to remain shut down, energy secretary Edward Davey said: “Grangemouth is an important part of the Scottish economy, with industry, jobs and people’s livelihoods at stake. I have worked hard with both sides to urge them to continue talking and find a way that secures a long-term future for Grangemouth. “Motorists should be assured that the Grangemouth shut down will not affect Scotland’s petrol and diesel supplies. We have been working closely with the fuel industry and Scottish Government to ensure robust contingency measures are in place.”

In a statement issued today (Wednesday 16th October 2013), energy secretary, Edward Davey said: “I am pleased that Unite have called off this weekend’s strike. I would urge both parties to continue to talk with the help of ACAS in order to reach a fair, sustainable resolution of their differences and ensure the long term future of the Grangemouth complex” “We have been working closely with the fuel industry and Scottish Government to put robust alternative fuel supply routes in place in case the refinery is forced to close.”  

The Health and Safety Executive has published a consultative document – CD 262 – on draft regulations to implement article 30 of council directive 2012/18/EU, known as the Seveso III directive. This Directive concerns the control of major accident hazards involving dangerous substances. Article 30 amends the Seveso II directive (council directive 96/82/EC), in relation to the requirements for Heavy Fuel Oil (HFO). The document addresses proposals to amend the Control of Major Accident Hazards Regulations 1999 (COMAH) for HFO and associated amendment to relevant planning requirements. CD 262 can be accessed at www.hse.gov.uk/consult/condocs/cd262.htm. The questions within it can be completed online, by email or in writing and closes this Friday (18 October 2013).

January 2014 could bring higher European jet fuel prices. In recent months there has been a considerable degree of confusion regarding the EU’s Generalised Scheme of Preferences (GSP) and the impact it may have on oil prices within the EU. The GSP allows import tariff exemptions on goods from developing countries, thereby encouraging trade with poorer countries. It may come as a surprise that, at present, countries eligible to benefit from the scheme include Russia and most of the Persian Gulf (including Saudi Arabia).  However, the World Bank has now reclassified these nations as upper-middle income economies which will mean that, from 1st January 2014, all standard import tariffs will apply.  To compound matters further, Libya, a key supplier of jet fuel into the Med, is considered to be on the verge of a World Bank upgrade, so may soon be subject to the same import tariffs. Information coming out of Brussels on how this relates to oil imports has not exactly been clear: initial reports were that, as of the start of next year, all crude oil and refined product imports from the newly upgraded nations would be liable for duty at 4.7%.  This was swiftly followed by the news that all oil products would in fact remain exempt, before the latest update confirmed that jet fuel (kerosene) will be liable for duty whereas crude oil and low sulphur gasoil/diesel (less than 0.2% sulphur) imports will remain exempt. “If the planned changes do go ahead, a large amount of imported European kerosene will see price increases of 4.7%” What would be the implications of a 4.7% import tariff on kerosene jet fuel?  At present, the EU as a whole imports roughly one million tonnes of jet fuel per month from the Persian Gulf and North Africa, with imports nudging two million tonnes in peak (holiday) periods.  A source from a state run Persian Gulf oil refinery explained, “We are concerned these changes from the EU will cut demand for jet fuel from the Middle East region [which] will hurt our own refining margins at a time when we are expanding our capacity, in part to meet European demand.” At the same time, questions are being asked of the extent to which refineries in India (which will remain a GSP beneficiary) could step up to any increase in demand.  We could well end up in a situation where refined jet fuel from the Middle East regularly travels to Europe via an intermediary in the Far East, thus still qualifying for import tariff relief under the GSP – hardly the intended effect of the scheme and certainly not a supply-chain likely to bring down prices.  Another likely consequence is that, if jet fuel in Europe does end up being sold at a premium to that of the rest of the world, airlines will look wherever possible to refuel outside of the EU to reduce costs. In recent weeks there have been increasing noises coming out of the EU to suggest that the import tariff on jet fuel could be avoided altogether if the Gulf Cooperation Council States (Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman) reconsider engaging in bilateral trade negotiations with the EU, which have been on hold since 2007.  So depending on your opinion of the EU, this whole episode could be considered either as strong-arm tactics to boost trade with the Middle East (“come back to the table on the trade bilaterals or we will block your fuel imports”), or an EU oversight and failure to consider the actual implications of the GSP. If the planned changes do go ahead, a large amount of imported European kerosene will see price increases of 4.7% and for distributors that should be a worry. Not only is the legislation set to be applied in the midst of the heating oil season (Jan 2014), but for an industry already under pressure to prove its consumer value versus other methods of heating, a jump of circa 2.5ppl will not be welcome. “We could well end up in a situation where refined jet fuel from the Middle East regularly travels to Europe via an intermediary in the Far East”