euraope n edition - erpecnews.com · oil inventories and modernising fuel sta- ... polish oil and...

Issue No 23 | October 2010

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Gasoline shortage gripping uzbekistan

Gazprom Neft to double investments

Long lines of drivers must wait hours to fill up their vehicles at government-operated gas stations. A deepening fuel shortage is abetting corruption and spreading widespread frustra-tion across the country. Apart from being one of the top 15 natural gas producers in the world, Uzbekistan also possesses substantial oil reserves. But Uzbekistan has an inadequate infrastructure to pump and refine the crude.

Serbia’s NIS oil monopoly, majority owned by Russian group Gazprom Neft, will double planned investments in its drive to become the regional market leader by 2020, NIS informed.NIS Chief Executive Kiril Kravchenko said the company would invest around $1 billion by 2014. Half of this will be spent on its oil refinery in Pancevo and the rest on boosting oil inventories and modernising fuel sta-tions. Kravchenko said its strategy focuses on increasing refinery output, modernising petrol stations and increasing its share of the wholesale market to 75 percent. Gazprom

Observers say that Uzbekistan’s three major oil refineries operate only at a fraction of their capacity because they have not been upgraded since the Soviet era. Uzbekneftegaz, the state oil-and-gas entity, has been tasked with upgrading refineries, but lacking govern-ment financing has reportedly undermined the company’s efforts to implement the task, observers say. Rather than protest, some Uzbeks are trying to find alternate solutions. A few are reportedly smuggling fuel from energy-rich neighboring countries, including Kazakhstan and Turkmenistan. In addition, a growing number of drivers are installing technology that allows car engines to run on natural gas rather than gasoline.

Neft paid 400 million euros ($533.8 million) last year for 51 percent of NIS as part of an energy pact between Serbia and Russia. It pledged to invest 500 million euros in the Serbian company.

Orlen eye’s Czech rep.

German Cartel Office appeals court ruling

Polish oil and gas giant Orlen is looking for tasty takeover quarry in the Czech Re-public. Orlen would like to strengthen its market position in the Czech Rep, which it currently operates in under the Unipetrol brand. And the timing seems right as Shell is planning to back out of the market. But the strategy currently seems to be more of a hunt for a good buying opportunity than a concrete long-term plan.

Germany’s Federal Cartel Office has ap-pealed the judgment of a regional court in August that overruled its decision to block the planned takeover of Austria’s OMV AG’s 59 petrol stations in eastern Germany by France’s TOTAL SA. An-dreas Mundt, president of Germany’s top anti -trust authority said that “the cartel office still thinks the purchase of the OMV filling stations in eastern Germany would have given TOTAL and four other companies that form an oligopoly in the German gasoline and diesel sector an unacceptable market dominant position“. In early August, however, the decision to block the deal was overturned by a regional court in Düsseldorf, which said the transaction wouldn’t fortify or create a market dominant position.

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erpecnews is published monthly by McLean Events Europe Ltd in conjunction with PetrolPlaza.com and distributed to retail petroleum operations in Europe and the Middle East. McLean Events Europe is the organiser of erpec, the leading business event, held every two years, for Europe’s retail petroleum market.

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sPar austria rolls out express forecourt storesBy the end of 2013, the retailer plans to ex-pand the current number of six Spar Express outlets to 70 stores in Austria. Spar started piloting the new format in September 2009, teaming up with Austrian petrol station operator Doppler Mineralöle. The first four Spar Express forecourt stores opened in

Salzburg, Graz and Linz and are located at petrol stations run by Doppler Mineralöle (BP or Turmöl). The stores, which are open seven days a week have a sales area of 80 square metres. The product range comprises 1 500 items, around 40 percent of the products are from Spar (Austria)’s private label ranges.

texaco sell off european assets Oil giant Chevron has put its Irish business up for sale, and is seeking buyers for its Texaco network of petrol stations and the Texoil oil brand. The Irish assets will be auctioned off as part of a larger disposal of certain Euro-pean assets belonging to Chevron. The US multinational has retained Deutsche Bank, the German merchant bank, to handle the sale. Chevron generates annual revenues of 1.4 billion euros through its Irish opera-tion. It owns 14 Texaco petrol stations, and

supplies fuel to a further 200 independent petrol stations which trade under the Texaco brand. The company also owns Texoil, one of the country’s largest fuel distributors, with 11 depots throughout Ireland. The oil giants have gradually withdrawn from Ireland and other European markets in recent years, to focus more on their exploration and refin-ing activities. Shell and Statoil have sold all their service stations to Topaz in the past five years.

shell launches Coffee republic in the uK

tatNeFt expands filling station network

Shell in the UK has signed an agreement with Coffee Republic that will see the launch of Coffee Republic’s Italian Roasted takeaway coffee at up to 450 Shell forecourt stores across the country within the next 12 months. As part of the roll-out, Coffee Republic has linked up

TATNEFT-AZS Center in Almetyevsk, Tatarstan, opened 7 new stations with their total number now reaching 270 outlets. Until the end of this

with self-service speciality coffee bar provider MyCoffee. Coffee Republic CEO Tariq Affara said: “This is a new way of reaching our custom-ers and an exciting first for the Coffee Republic brand ... We are now looking forward to rolling out Coffee Republic ‘To Go’ across the country.”

year TATNEFT AZS-Center plans to commis-sion 8 more filling stations. TATNEFT-AZS Center is a member of TATNEFT Group of Companies within the block of crude oil and petroleum products sale. One of the distinct activities of the Company is shipment of gas products produced by OAO TATNEFT. The filling stations’ network of OAO TATNEFT includes 626 stations (including rented). 490 filling stations are located in the Russian Federation and 136 stations in the Ukraine.

Gazprom Neft acquires Kazakhstan networkGazprom Neft has completed a deal with the Kazakhstan company ARNA Petroleum to acquire a chain of 20 gas stations as well as nine plots of land, the company reported. The assets are located in Almaty, Taldy-Korgana, Taraza and Shymkent. The chain will be managed by the limited liability company Gazprom Neft-Kazakhstan, a subsidiary of Gazprom Neft which was founded in 2007. Fuel for the stations will be supplied from the Omsk refinery. By the end of 2010, all

of the filling stations will be re-branded under the Gazpromneft brand. Another 20 filling stations in Almaty and Astana will be launched in 2011.

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uK supermarket Morrisons select Fairbanks

turkmenistan to sell gasoline and diesel fuel abroad

Fairbanks has been engaged to provide its services across Morrisons petrol filling sta-tion network. As part of a comprehensive service package, Fairbanks is providing tank

In accordance with the instruction from the head of state, the Ministry of Oil and Gas Industry and Mineral Resources of Turkmenistan will consider the selling of Turkmenistans gasoline and diesel fuel abroad, taking into account the existing demand for these fuels. The President of Turkmenistan also issued instructions to think of necessary measures for the effective ecology friendly use of oil products through collection and recycling of waste industrial oil. In addition, the existing outdated fuel-filling stations will be completely replaced with modern

alarm monitoring, wetstock analysis and loss investigations, supplemented by on-site meter calibration and verification services. This is in addition to the risk assessment work it already undertakes for Morrisons. Mark Todd, Direc-tor of Petrol at Morrisons, said “Morrisons is committed to operating its filling stations to the highest standard and the assurance Fairbanks offers will complement our internal procedures. We’re looking forward to working with the team at Fairbanks.”

stations with electronic equipment. Since 2008 Turkmenistans car owners have been given 120 litres of gasoline or diesel fuel a month free of charge, and owners of buses and trucks – 200 litres of fuel a month free of charge. Fuel in excess of these limits is sold for cash. Thus, 1 litre of gasoline grade A-80 is sold at 54 tenge (about 12 US cents), gasoline grade A-92 – 58 tenge (about 13 US cents), the same price applies for 1 litre of diesel fuel. One litre of the most popular gasoline grade A-95 is sold at 62 tenge (about 16 US cents).

statoil paves way for filling stations Statoil last week signalled it was pushing ahead with the planned spin-off of its international chain of filling stations as the Norwegian energy group sought to sharpen its focus on oil and gas exploration. The group said it had applied to the Oslo Stock Exchange for the admission of a new company, Statoil Fuel & Retail, paving the way for an initial public offering in the fourth quarter of this year. Analysts said the business could be valued at more than NOK 10 billion (US $ 1.6 billion). The fuel and retail business made operating profits of NOK 1.5 billion in 2009. The spin-off would underline the shift by oil and gas producers away from roadside retail

operations, typically among the lowest margin parts of their business. The Statoil business includes 2 300 filling stations in eight coun-tries across Scandinavia, the Baltic states, Poland and Russia. It also includes a unit that sells lubricants and aviation and marine fuels. Statoil on Thursday said it would hold on to at least half of the company after the IPO, which would go ahead in the fourth quarter, subject to market conditions. The group, two-thirds owned by the Norwegian government, who announced the spin-off plan last February, will keep control of its refinery business, which supplies the retail operation.

LuKOIL forms spanish storage joint venture

repsol YPF replaces POs systems

Litasco, the Geneva-based international trading and supply arm of Russian oil major LUKOIL, has established a joint venture with Spain-based oil company Meroil for the extension of the existing Meroil terminal in the Port of Barcelona. This new capacity will further reinforce the LUKOIL group’s trading and supply infrastructure in the Mediterranean region. The terminal will be equipped with the most advanced security, oil movement and fuel control systems and will be certified for quality as well as, health, safety and environmental manage ment. The LUKOIL network includes 204 tank farms and 6 748 filling stations (including franchises), operating under three brands: LUKOIL, Teboil and Getty.

Convenience and forecourt store chain Repsol is starting a POS system renewal programme for its service station network in Spain and Portugal. The project has been awarded to Toshiba TEC and covers a total of 11 500 POS systems. With the new system, featuring in-built stereo speakers and a customer facing touchscreen, deliver-ing interactive multimedia presentations and promotions at the POS. The four-year replacement programme includes a com-plex roll-out logistics operation, staging and implementing localised hardware and software configurations as well as third party maintenance.

editors messageDear everyone

I am sure it has not escaped your notice that the October issue of erpecnews has been delayed by 2 weeks, mainly due to the hectic activity surrounding Automechanika this year, at which we had a major pres-ence. I hope you will enjoy the magazine all the same and look out for photographs of all the erpec companies taking part in Frankfurt. Also included in this issue is a photo book album of the last two erpec events in Baveno, Italy in 2009 and Mar-bella, Spain. If you were there then I am sure this book will bring the memories flooding back and if you were not then perhaps you may consider coming to our next event in Barcelona next year.

For details visit www.erpec.com

Finland build “green highway” The “green highway” will link Turku, Fin-land’s southwestern coast with Vaalimaa near the Russian border and will measure almost 130 kilometres. In charge of the project is the town of Loviisa, which is located in the east of Helsinki, the one who proposed making this road “green”. Other proposals include installing geothermal heat pumps and providing information to users about their emission levels and the impact they are having on the environment.

The highway will have “smart” lighting, which is a system that will automatically switch off the light at entry points when there are no cars and adjust the light according to weather conditions. The project will get finance from companies like Fortum, Neste Oil and Ensto. It is hoped that construction will start in the second half of next year and expects to complete in 2016, at a total cost of about US $ 900 million.

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News – eurOPe

advanced additive engineered in Germany

Price rise fears prove inaccurate in the uK

Gilbarco veeder-root partner tora Petrol

BHPetrol has launched an updated version of their RON95 and RON97 fuels. The new formulation is called BHPetrol Infiniti Advanced2X 95 and BHPetrol Infiniti Ad-vanced2X 97 and features a new additive from a German chemical company which BHPetrol calls the Advanced Additive Com-pound, or AAC. In tests the new BHPetrol formulation knocked intake valve deposit levels down to a 3 mg / valve. BHPetrol is the first customer for the new AAC additive in the region. Of course, BHPetrol has once again stuck to its “double strength” formula, adding 800 ppm of the AAC additive to both its RON95 and RON97 fuel, which is the maximum recommended treat rate for each drop of fuel.

The Automobile Association in the UK has claimed that predictions of sharp petrol pump price rises by petrol retailers are unfounded. Fears that the cost of filling up could soar have been denounced by the AA, although the organisation did admit that the north-south divide for fuel prices is growing wider. This follows forecasts by the Retail Motor Industry Independent Petrol Retailers Association (RMI Petrol) on 10 August that petrol prices would rise by three per cent in the next weeks and by eight per cent by early 2011. The latter prediction has not yet been challenged by the AA. AA public affairs head Paul Watters said: “Scaring drivers with false predictions of imminent price rises was not the retailers’ finest hour.” According to the AA, the gap between average petrol prices in the north and the south currently stands at 1.7 p a litre, in contrast to 0.9 p a litre in May this year.

Gilbarco Veeder-Root announced the formal conclusion of a new distribution agreement for Turkey with Tora Petrol. The agreement was signed by Tora’s Managing Director Fatih Akin, and Gilbarco Veeder-Root’s European Distribution Director Andreas Wenzel, in July. With the new partnership, Tora Petrol becomes authorized distributor for the entire Gilbarco Veeder-Root product range, including fuel pumps and dispens-ers, automatic tank gauges, leak detection systems, and Red Jacket submersible pumps.

shell in talks with Finnish based st1

Gardaí discover illegal fuel plant in Ireland

Changes in statoil’s corporate structure

Royal Dutch Shell is in exclusive talks with Finland-based energy company St1 for the sale of its Swedish and Finnish assets as part of its earlier announced plans of selling 15 percent of its refinery capacity in Europe and the Americas. The sale also includes a marketing arm, and its network of more than 400 fuel stations, which the Netherlands-based oil company hopes to get as much as $ 750 million. The Finland assets for sale are primarily oil products retail and marketing business that include 230 retail sites, 58 unmanned refuelling stations for commercial road transport, its aviation fuel business and

its liquid petroleum gas business. By selling its assets in Finland, Shell will be completely exiting the country as it has already outsourced the distribution and marketing of Shell-branded lubricants to Univar, a US-based global chemi-cal distribution company.

Revenue officers and Environmental Protec-tion Agency personnel assisted by gardaí have discovered a huge illicit diesel laundering plant as well as an illegal dump in remote farmland, in Rebane, Shantonagh, in Co Monaghan. About 21 000 litres of illicit diesel and 10 filter beds for removing marker dye were discovered in the swoop as was a substan -tial illegal dump, which is understood to contain medical waste. Differences in the price of oil

Statoil ASA will change its organisational structure as a response to future business opportunities and challenges, and to support a continued strong development of the com-pany. Today more than 25 percent of the daily production comes from Statoil’s international portfolio and Statoil have also taken important

on either side of the Border make the illegal practice of “diesel washing” highly lucrative as the washed oil can then be sold to filling stations as motor fuel. The find follows the discovery of a diesel laundering plant in south Armagh close to the Louth and Monaghan borders earlier last week. Both discoveries are part of an ongoing crackdown on criminal activity by the revenue and police authorities on both sides of the Border.

steps to grow its portfolio within renewable energy. The new organisation will reflect the ongoing globalisation of Statoil, leverage it’s position on the Norwegian Continental Shelf and simplify internal interfaces to support safe and efficient operations. The changes are planned to take effect from 1st January 2011.

altinbas looking for partners in turkey's alpet Altinbas Holding is looking for European companies to buy a stake in its Turkish fuel retailing unit to help it expanding abroad, Chairman Imam Altinbas said. The company held talks with “many” European companies, including Eni SpA and previously LUKOIL OAO, on buying a stake in Alpet AS, he said in an interview in Istanbul. “We would like to have a group as partner that will expand our fuel business in Europe,” he said, declining

to comment on whether talks with Eni, Italy’s largest oil company, are continuing. Altinbas may decide on an IPO should a stake sale in the fuel unit not succeed, he said. The retailer has a 2.7 percent share of the Turkish market, trailing Petrol Ofisi AS, a unit of OMV AG and Dogan Sirketler Grubu Holdings AS with a 32.8 percent share, as well as a unit of Royal Dutch Shell Plc, which has 18 percent, according to the country’s energy regulator.

total's 800 uK petrol stations may be sold U.K. energy company Greenergy is considering buying 800 service stations in the U.K. that have been put up for sale by the French oil major TOTAL SA. Greenergy, partly owned by Tesco PLC and Barclays PLC, may bid for TOTAL's network – which accounts for

nearly 10 percent of the U.K. market – to gain control of the infrastructure behind it, includ-ing tankers, terminals and the 247 kilometre underground pipeline from its Lindsey refinery in Lincolnshire to the Buncefield fuel depot in Hertfordshire in the southeast of the U.K.


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wOqOd to build new fuel stations in qatar

reliance resumes fuel retailing in India

More fuel stations reconstructed in sri Lanka

Mrs extends its investment in Nigeria

Indonesia establishes renewable energy

NNPC open mega stations in Nigeria

super Petroleum to construct in Liberia

Photobook extra copy

PetroChina to supply tibet with LNGQatar Fuel (WOQOD) announced that it will

open six new fuel stations by the end of this year and seven others in different stages of design to be operational in 2011. WOQOD Deputy Board Chairman and Managing Director Mohammad Turki Al Sobaie said that Qatar Fuel (WOQOD) will enter into

Following the deregulation era, India’s largest business conglomerate, Reliance Industries Ltd have reported that the company has resumed the retailing of petro-fuels from as many as 162 outlets in Gujarat. With the decontrol of petrol pricing, the RIL fuel retail outlets now retail Motor Spirit (Petrol) at price parity with PSUs. The company

The Government has taken action to open more filling stations in several areas in the North, including Kilinochchi and Vavuniya to speed up development in the North. The Petroleum Ministry reconstructed several fill-ing stations from Vavuniya to Elephant Pass,

MRS Plc, which officially acquired a 60 per-cent stake in Texaco Nigeria Plc in 2008, has extended its investment profile to the Benin Republic, Senegal, Togo, Ghana, Cote d’Ivoire, South Africa, Congo and France. Managing Director Mr. Shardhashis Prasad stated that the acquisition of Chevron Ni-geria enhanced MRS’ vision of spreading its reach across Nigeria’s borders” and that “We are very pleased to acquire Chevron Nigeria Holdings (parent company of Texaco) and this demonstrates further our vision in investing into the future of the downstream oil businesses in West Africa”. The company,

The government of Indonesia has been considering new and renewable energy deve-lopments following declining oil production that forced them to pull out of OPEC in 2008. To reduce fossil fuel consumption, the government has mandated fuel retailers to mix biofuel in their products since 2008. Currently, the country produces bioethanol and biodiesel. Subsidized premium gasoline contains at least 1 percent of bioethanol, while subsidized diesel contains at least

Mr Nathan Egba, Bayelsa state Commis - sioner for Information, Strategy and Orien-tation, said that NNPC had given approval for the establishment of two new mega filling stations in the state of Bayelsa. He said the stations, to be located at Ogbia town and Okordia / Zarama, in Ogbia and Yenagoa local government areas respec - tively, would ensure steady supply of petroleum products in the state. He also said that the NNPC planned to establish a branch office of the Department of Pe-troleum Resources in Yenagoa to ensure close monitoring of petroleum supplies in the state.

The Management of Super Petroleum (SP), a petroleum products importation and dis-tribution company in Liberia has disclosed plans to shortly begin the construction of a modern gas station network across the country. According to the Operations Man-ager Mr. Ansu S. Kanneh, the modern gas station when constructed, will put Liberia on par with other countries around the world in the sale of petroleum products. Mr. Kanneh also said that SP is presently operating over sixteen (16) filling stations around the country as well as in Gbarnga and Ganta with plans to extend to other counties soon.

If you would like an extra copy of the erpec photobook, please e-mail [email protected]

PetroChina Co Ltd plans to build a 300 million yuan ($ 44 million) liquefied natural gas (LNG) facility in western China to sup-ply Tibet, parent China National Petroleum Corp informed. The company would build a receiving facility in the Tibetan capital Lhasa and a 38-kilometre gas grid, as well as compressed natural gas filling stations for vehicles in the city, it said.

contracts with outside distributors soon in order to export a complete range of Qatari lubricating oils covering all needs of countries in the region. Sobaie further said that the company will expand by opening between 80 to 100 new distribution centres by the end of this year across the state.

said that previously, in times of controlled pricing, fuel retailing was a disadvantageous business, as the private payers were not entitled to get government subsidy. ‘Now, with the deregulation of Petrol, there is a level playing field and Reliance Petrol will now be sold at the same price as that of the other Oil Companies,’

which were destroyed by terrorist activities. Accordingly, Mankulam filling station con-structed at a cost of Rs. 8.4 million has been re-opened. Construction work is being carried out in the filing stations in Hirunorukandi, Thunikkai and Uyilankulam.

whose other equity holders include Zenon Petroleum and Gas Limited with 19 percent and remaining 21 percent being owned by other shareholders, has commenced full operations and re-branding of all the 625 Texaco retail outlets it acquired recently. While stating that MRS would continue to acquire more retail outlets from the in-dependent marketers and also build more, Prasad said that the essence of the expansion was to ensure uninterrupted fuel supply to Nigerians and also to position the company for healthy competition whenever the sector was deregulated.

5 percent of biodiesel. Indonesia is the largest producer of crude palm oil – the source of most biofuels – with production estimated to hit 21.5 million tons this year. The ministry’s directorate general for oil and gas said the country produced 4.1 million kilolitres of biodiesel per year and 120 000 kilolitres of bioethanol per year. The ministry estimates biofuel consumption to reach 777 075 kilo-litres this year. The volume is expected to increase to 982 000 kilolitres next year.

News – MIddLe east, aFrICa & asIa

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India transport fuel at higher rates

1 000 new Yanchang gas stations for China

India state oil retailers receive compensation

CHevrON Malaysia replace star Mart

After briefly maintaining prices at par with public sector oil marketing companies following the 25th June price hike, private fuel retailers Essar Oil and Reliance Industries are selling petrol and diesel at a premium of Rs 0.50 to 2.50 per litre in some states. “After the price

As planned, Yanchang Petroleum will develop its gas station network through acquiring, building and leasing stations as it strives to make the size of its sales terminals the third largest in China after Petro China and Sinopec. Meanwhile, the oil firm attempts to have 70 – 80 percent of its oil products production sold via its own gas sta-tions. PetroChina and Sinopec, China’s largest

India’s federal government has released 140 billion rupees (US $ 3 billion) in cash compen-sation for the last financial year to state-run oil marketing companies Indian Oil Corp. Ltd., Hindustan Petroleum Corp. Ltd. and Bharat Petroleum Corp. Ltd., Oil Secretary S. Sundareshan informed. The fuel retailers sell gasoline and diesel at government-mandated discounted prices to help tame inflation. Gasoline prices were deregulated from 26th June, but diesel fuel prices continue to be controlled by the government. The profitability of the oil retailers significantly depends on how much of their revenue loss is compensated

Chevron Malaysia aims to open 150 Xpress Point stores, its new convenience store brand, at Caltex fuel service stations by 2015. The open-ings form part of the retailer’s wider rebranding programme. According to Chevron Country Chairman, Jeremy Oh, the company is looking to have 50 Xpress Point stores in the next 12 months, which will replace the current retail outlets under the Star Mart brand. “We have 160 stores nationwide, representing a strong retail network and want to have only one brand retailer to take ownership”, said Mr. Oh after the launch of the first Xpress Point store at a

increase (on 25th June), all our outlets had at par pricing for some time, but thereafter, dif-ferential pricing was introduced in few states. Currently, the price differential in these states is Rs 0.50 to Rs 2 per litre for diesel and Rs 2.5 for petrol”, said an official at Essar Oil, which runs 1 343 retail fuel outlets. A spokesperson at Reliance Industries confirmed the company was selling petrol and diesel at a premium in some states, depending on the distance from its Jamnagar refinery. Of its 1 430 retail outlets, the company is currently running around 680. The company is not keen to operate all outlets till the government decontrols diesel prices as well.

oil products retailer, are also trying to expand their presence through building gas stations in its competitor’s turf. PetroChina in April of last year announced a plan to build 300 gas stations in Sinopec’s turf of Jiangsu province before 2015, while Sinopec in return claimed to build 300 new gas stations in Chengdu and Chongqing, traditionally territory of PetroChina.

by the government. However, subsidies are often delayed and the frequency of payment is uncertain. The oil companies had gross under-recoveries of 460 billion rupees in the financial year ended 31st March and the government approved a cash subsidy of 260 billion rupees. Of the approved amount 120 billion rupees has already been released with the balance of 140 billion rupees released just recently Mr. Sundareshan said. Oil companies expect their profits to rise, borrowings to fall and expansion projects to receive a boost after the partial deregulation. The impact on earnings is expected from the current quarter onwards.

Oando plc plans to list on Nse soon There are indications that the Board of Directors of Oando Plc have concluded arrangements to list its Oando Market-ing Division (OML) as a separate entity on the Nigerian Stock Exchange (NSE). The listing, according to stockbrokers will make Oando Marketing a separate entity from Oando Plc. Oando Marketing is the leading retailer of petroleum products in Nigeria and sells and distributes one in every five litres of petroleum in Nigeria via over 550 retail outlets, and has opera-tions across West Africa – Ghana, Togo and Benin Republic.

tOtaL takeover may cool fuel prices

emarat denies clo-sure of fuel stations

The taking over of TOTAL Kenya assets, including a gas refilling station and fuel dispensing outlets by State-owned National Oil, is aimed at providing a stable ground for the volatile local fuel prices. National Oil Corporation of Kenya has concluded an asset purchase agreement with TOTAL Kenya Ltd aimed at increasing its market share to enable it stabilise prices in the country. In the deal Nock will be taking over an LPG (Liquefied Petroleum Gas) filling plant in Nairobi and five filling sta-tions, two within Nairobi, one in Mtito Andei, another in Thika Town and also in Garissa Town. Oilcom (K) Ltd will take over the other assets.

Emirates General Petroleum Corporation, or Emarat, has said technical problems that led to partial supply disruptions at some of its filling stations had been resolved. Denying reports by a section of the media that Emarat had closed down some of its filling stations as it ran out of petrol, the Dubai-based retailer said: “The lack of partial supply of fuel to some gas stations was due to technical problems in the sup-ply logistics of gasoline products in the major reservoirs.”

Caltex fuel service station this week. The fuel service stations’ current operators will be given the option of either choosing Xpress Point or staying with the traditional brand, Star Mart or C-Mart. We believe that with these new retail outlets we can provide better service.

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Petronet LNG to see divestment

NOCK purchases total outlets in Kenya

The Asian Development Bank (ADB) has said in a letter that it wants to divest its stake in Petronet LNG. The letter was written to the promoters of the gas trading and distributing company. At present, ADB has a 5 percent stake in Petronet and the value of it is 444 crore rupees. The bank wants the other stakeholders

In the gas deal transaction, National Oil will take over an liquified petroleum gas filling plant located along Nanyuki Road in Nairobi

On 27th July, Ecuador passed a new Hydro-carbons Law which aims to expropriate foreign-company operations unless they sign the new service contracts which increase state control of the industry. “A working draft of the new service contracts has been sent to companies”, for discussion, Pastor said. Under the new

service contracts, private oil companies will be paid a production fee while the govern-ment will own 100 percent of the oil and gas produced. Pastor said, “oil companies will have until 20th August to make observations about the new contracts”. He warned, however, that the only target open for discussions was over the flat rate production fee to be paid to private oil companies, and not about any “more general” clauses. The new hydrocarbons law fixed a deadline of 120 days from 27th July for major operators to make the change over to the new service contracts. Smaller petrol companies have 180 days.


like IOC, ONGC, BPCL and GAIL, to takeover this stake. The four Indian fuel companies are holding 12.5 percent stake each in Petronet and their combined stake in 50 percent. The rest stake is divided bet ween ADB and other public and financial institution which hold 5.2 percent and 34.8 percent respectively.

and five filling stations, two within Nairobi, one in Mtito Andei, another in Thika and also in Garissa town in Eastern Kenya. The deal is part of National Oil’s strategy to spur retail business, a move that is in tandem with its statutory mandate to deepen the use of petroleum products in the country. At the same time, National Oil recently concluded an asset purchase agreement with Total Kenya for some outlets around the country in a bid to boost market share and stabilise oil prices.

uganda licenses dealers ‘emarat cares’ The Ministry of Energy has launched a cam - paign to license all fuel dealers afresh as it em-barks on bringing the operations of the industry in order. According to a source familiar with the operations of the industry, stations which don’t comply with required safety and quality standards may be forced to close shop. Cur-rently, the industry has about 1 100 fuel stations.

Emarat is sponsoring a School Feeding cam-paign which was launched by the Dubai Cares Initiative, as per the instructions of HH Sheikh Mohammed bin Rashid Al Maktoum. The campaign aims to provide children in deve-loping countries schools with their daily needs of nutritious foods that enhance their learning process.

ecuador send out new model contracts

News from south america

For Petrotec a booth – with an image centered on the new technologies – was the chosen path to demonstrate its product portfolio in this year’s edition of Auto-mechanika. Introduced for the first time representing “state-of-the-art” technologies was the Progress range of fuel dispensing pumps, including the new Eco Dispenser – Green Pump, which uses photovoltaic panels as an alternative and clean energy source. Petrotec also displayed its retail automation systems, with a big focus on ASK, a revolutionary technology for fore-court equipment remote management and breakdown diagnostics.

automechanika news

Petrol hike rollback in argentina The government has ordered a petrol hike rollback as published in the Official Gazette (resolution N° 295 / 2010). The resolution warns those who raised prices after 31st July must roll them back to that date. According to official sources, more than 50 inspectors were

sent out to enforce the order. Shell Chairman Juan José Aranguren questioned the resolution, arguing that “there is no emergency that may justify it and contrary to what almost all petrol stations say it is the petrol stations which are setting fuel prices”.

At Automechanika ELAFLEX presented innovations and features related to the ZVA nozzles, as well as hoses and accessories for gasoline, diesel, autogas and AdBlue. The new LeverAssist® for easier fuel dispensing with ZVA Slimline 2 nozzles allows the lever to be held open without effort. An ideal option for countries where hold-open latches are not allowed. The ZVG 2 nozzle range is now available in three coupling types – ACME, DISH and EURO. Elaflex’s recent teaming up with Australian based L. G. Equipment is rated as a positive enhancement. Their GasGuard nozzle range perfectly complements the existing ZVG range. ELAFLEX also presented their new Vapour Recovery Stage II video and a display showing the possibilities of the new ‘Direct Print’ process for manufacturing full colour custom made slogan badges for nozzles from 50 pieces.

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suPPLIer NewsAll text on this page is submitted and written by suppliers. Please email product news to [email protected]

tokheim invests in Fairbanks environmental

OPw, FaFNIr sign distribution agreement

Franklin Fueling systems acquire Petrotechnik

Tokheim announced that it has invested in Fairbanks Environmental ltd and has signed a partnership agreement to help Fairbanks develop its business globally. Bob Conlin and Steve Jones, Fairbanks Joint Managing Directors said, “we believe that this partner-ship gives us the best possible opportunity to deliver our services in new markets, whilst

OPW Fueling Components, a Dover Company, announced that it has reached a long-term, private label distribution agreement with FAFNIR, GmbH to distribute FAFNIR’s VAPORIX Vapour Recovery Performance Monitoring system as part of its new ATEX and TUV Certified Next Generation CVS2 Central Vacuum Stage II Vapor Recovery System. This innovative vapour recovery solution is ideally suited for retail petroleum

Franklin Fueling Systems has announced that it has completed the acquisition of all outstanding shares of PetroTechnik Limited (“PetroTechnik”) for cash. Don Kenney, Presi-dent of Franklin Fueling Systems, stated, “The acquisition of PetroTechnik and its subsidiaries in the UK, France, Brazil, India and China, doubles Franklin Fueling’s global pipe and containment sales, doubles our revenue in Europe and increases our overall non-U.S. sales by fifty percent. “Franklin Fueling Sys-tems is now able to supply customers globally with both the UPP brand electrofusion pipe certified to European (EN) standards, as well as the market leading APT brand flex-ible pipe certified to U.S. (UL) standards. Electrofusion pipe is the preferred technology

maintaining our independence and allowing us to keep day to day operational control of the business”. “We are very happy to team up with Fairbanks, believing that our new relationship will accelerate the growth of Fairbanks, whilst giving Tokheim’s customers opportunities to access Fairbanks unique services”, said Patrick Berthon, Tokheims President.

marketers who are faced with upgrading to Stage II vapour recovery in order to meet newly legislated EU and other global vapour recovery compliance requirements. FAFNIR’s Managing Director, Rene Albrecht, commented, “With this combined offering, petroleum operators receive not only a greatly enhanced vapour recovery and compliance solution but also a system that will deliver unprecedented ROI value”.

outside the U.S. Kenney concluded, “We are pleased that PetroTechnik has the confidence in Franklin to continue its shared vision of commitment to its customers. John Boudry, Chief Executive Officer of PetroTechnik, will provide consulting services throughout the integration.” Mr. Boudry added, “This union is a wonderful step forward for the entire industry as a whole. I think it speaks to the globalization of the industry when two companies from different regions of the world come together in order to provide their customers with as broad a product offering as possible. Both customer bases will greatly benefit from this acquisition, which will also provide vast growth potential for two industry leading lines of pipe.”

Fujitsu chosen by shell as It provider

LGe joins eLaFLex

Fujitsu has been chosen by Shell as it’s future IT solution provider and support services at its service stations across 19 countries. Currently, IT support for forecourt control-lers, POS, payment card machines and back office systems is handled by multiple sup-pliers. Fujitsu will not only support existing and new IT, but will also be responsible for the roll-out and deployment of new site systems. Support of the 19 countries will be served by three global Fujitsu service centres based in North America, Europe and Asia Pacific.

In an effort to mutually strengthen the distri-bution of their LPG refuelling component product ranges, L.G.Equipment becomes a member of the ELAFLEX HIBY group. ELAFLEX HIBY Tanktechnik GmbH & Co, based in Hamburg / Germany acquired a stake in LPG nozzle manufacturer L.G.Equipment Pty. Ltd. (LGE), based in Sydney / Australia. The company de-signs, manufactures and distributes the ‘GasGuard’ LPG nozzle range. “This deal is a perfect synergy”, said Philip Treloar, Managing Director of L.G.Equipment. The extensive LPG as nozzle, hose and breakaway coupling product program, along with the imminent introduction of a new High Flow GasGuard nozzle will extend the opportunities for the distribu-tion network. “LGE will continue to design, produce and distribute LPG nozzles, at their present location, with Philip Treloar, as LGE’s Managing Director.”


‘Hey you’ gets a visit from the Governor

also ... saxs-Ktt to partner dw in Germany

The state of Baden-Württemberg Governor Stefan Mappus visited Hectronic in Bonndorf to see the “HeDu”-project (Hey you), which is an innovative educational cooperation between Hectronic and Dunkermotoren. The lack of specialized young workers is a great problem for the companies in the Black Forest and for this reason Hectronic and Dunker-motoren have started cooperating to opti - mize their professional educational system by using synergy effects. Governor Mappus were visible delighted about the “HeDu”- project and the innovation of Hectronic.

Dresser Wayne has announced plans to form a comprehensive distribution rela-tionship in Germany with SAXS- KTT, the German operation of the Austrian fuel-station maintenance provider KTT Kremsmüller Tankstellentechnik Group. Combining the strengths of two industry leaders, the alliance provides fuel retailers with a trusted resource for complete site fuel-dispenser and point-of-sale (POS) system provisioning as well as 24 / 7 main-tenance and service.

dresser wayne wins Nucleus approval from valero Dresser Wayne has announced that the Nucleus point-of-sale system has been approved by Valero Energy for implementa-tion at Valero-branded fuel sites across the US. The Nucleus POS system is expected to support revenue generation with mer-chandising functionality, such as discount combinations and loyalty programs. Dave LaCaille, Director for the convenience store channel at Dresser Wayne, said: “Valero’s approval represents a winning ar-rangement from several perspectives. Fuel retailers benefit from the Nucleus system’s business-enhancing features and regula-tory compliance, and Dresser Wayne can expand its presence from fuel dispensers on Valero-branded forecourts to include the POS systems in stores”.


autOMeCHaNIKa – sPeCIaL Feature


sPeCIaL Feature – autOMeCHaNIKa

had to by enlarge talk to each other at the weekend, but nothing which had not been said many times before in previous years.

The suggestions out there are that auto-mechanika would benefit from staging a 3-day long exhibit ion focused more specifically towards the interests of retail petroleum equipment suppliers and the industry visitors who come to see them. The shortness of hotel accommodation in

As always, Automechanika delivered a well organised showpiece event for the masses, included in which are the exhibitors and visitors from Hall 10 and the car wash del-egations which frequented the outdoor car wash showground. Messe Frankfurt reported that visitors came from 180 countries, to see 4 486 exhibitors from 76 nations and that 155 000 visitors attended in 6 days. There were the usual grumblings of dis-satisfaction from some exhibitors that they

Frankfurt, leading to extortionate prices being charged during the fair is also a prob-lem which has to be faced. From talking to the organisers, Messe Frankfurt, they are clearly aware of the situation, but as to whether they are able to change their format for just one part of their market, remains to be seen. Interestingly, Messe Frankfurt will be at erpec for the first time next year so perhaps this will be the perfect place to discuss the whole issue.

erpec delegates at Automechanika 2010

The ever smiling Air-serv team reported good business throughout the show

Fabrizio Lavieri putting the finishing touches to the Bennett + Sauser stand

Thomas Ochmann pausing for a moment to give us a picture on the Brugg stand

One of the biggest stands in Hall 10 of course belongs to Dresser Wayne

The star of the iSTOBAL stand, the M'NEX, making its debut at the show

ELAFLEX Managing Director Stefan Kunter in deep conversation

16



FAFNir, busy at the show, which recently announced an important tie up with OPW

The unmissable colours of Fibrelite dominate their lively looking stand

The huge Kärcher presence, looking more like a truck garage than an exhibition stand

Gilbarco Veeder-root. Surely one of the busiest stands throughout the show.

A rare moment of peace for Hectronic, who again sported German traditional dress

All smiles from KPS Sales Director Staffan Helleday

MD of Eurotank, Edward Wheeler finds time to relax whilst business goes on ... and on. A last minute sales huddle by the Franklin team, before the visitors arrive

17Latest News, eveNts, jObs ONLINe – www.PetrOLPLaza.COMLatest News, eveNts, jObs ONLINe – www.PetrOLPLaza.COM 17Latest News, eveNts, jObs ONLINe – www.PetrOLPLaza.COM

sPeCIaL Feature – autOMeCHaNIKa

Batuhan Kiroglu and erpec 's Stephen Bozdan talking nozzels on the MEPSAN stand

it 's simply a matter of style, for italian pipe manufacturer NuPiGEcO

richard Quarmby of Brulines and OPW's Bora Filipovic on the ever crowded OPW stand

christ – One of the major exhibitors in the newly redesigned outdoor car wash area

There can be no mistaking what PWM are promoting at Automechanika

The stylish and welcoming appeal of the Scheidt & Bachmann stand

Fabrice chapelain at the end of another busy day for Lafon Ask us anything ... was one of the themes on the Petrotec booth



François Meersseman taking a few moments out to do his emails on the cGH stand

Possibly the busiest, maybe the loudest, but certainly the most enjoyable stand to be on

Sandra and Aljona waving the flag for erpecnews, PetrolPlaza and erpec

PetroTechnik's charles Smith always wears this jacket on the last day of the show. Why???

Durapipe's Alain rondeau asking clients to guess what's in the bag. Piping possibly?

The biggest stand in the whole of Automechanika belongs to Washtec

A good show for SGB, with President Jost Berg running things from a wheelchair A colourful display as always from italian car wash manufacturer ceccatto

19Latest News, eveNts, jObs ONLINe – www.PetrOLPLaza.COM 19

sPeCIaL Feature– autOMeCHaNIKa

OttO CHrIst


Featured stOrY – buNCeFIeLd

In what’s being hailed as the solution to the “chicken and egg” dilemma of which comes first, natural gas-fueled vehicles or the filling stations for them, Atlanta Gas Light Co. is pushing a plan to build a statewide network of stations near large fleet customers. AT & T, UPS, the Georgia Ports Authority and the cit-ies of Augusta and Brunswick are lining up to be among the first. Even though natural gas is more plentiful in the United States than gasoline, burns cleaner and is cheaper, most Americans have had little opportunity to use it to fuel their vehicles. Policy experts liken the situation to the old saw about “which came first, the chicken or the egg?”

Efforts to establish more than 75 new renew-able fuel filling stations across California over the next two years got underway last week. Celebrations were held in Oakland, at the first of 20 new alternative refueling stations planned for the Bay Area. It was announced that the program, called the Low Carbon Fuel Infrastructure Investment Initiative (LCFI3), will be supported by a US $ 10.9 million grant from the US Department of Energy and the

ExxonMobil Personal Cardholders can earn a $ 50 Restaurant.com dining certificate. This fall, Exxon and Mobil retailers and Citi are giving cardholders the opportu-nity to earn a dining certificate that can be used at thousands of restaurants and online merchants. ExxonMobil Personal

The United States, home to one of the world’s largest supplies of natural gas, is lagging behind the rest of the world in using it as a transportation fuel. Actually, it’s “light years behind” the rest of the world, West Slope Colorado Oil and Gas Association Execu-tive Director David Ludlam told the Grand Junction Area Chamber of Commerce. The association this year launched the “Missing Miles Initiative” with the goal of making it possible to travel across Colorado in a vehicle

SunHydro announced an agreement with Toyota Motor Sales, USA, Inc. (TMS) to place ten Toyota Advanced Fuel Cell Hybrid Vehicles (FCHV-adv) in the Connecticut area this fall. The vehicles will support the new SunHydro solar-powered hydrogen fueling station, located at Proton Energy Systems’ headquarters in Wallingford, Conn. Proton

California Energy Commission. Propel Fu-els, which is putting in the new “Clean Fuel Points”, will match the grant with US $ 16 million of private investment. The installa-tion of greener filling stations is expected to create more than 450 jobs in the state, and see the displacement of 39 million gallons of petroleum. Propel’s Clean Fuel Points are designed to dispense both E85 ethanol fuel and biodiesel.

Energy Systems is the world leader in on-site hydrogen generation, and its equipment will be used at the SunHydro station. “This is a big step for Connecticut, our country, and the overall evolution of alternative fuels in the U.S.”, said Tom Sullivan, SunHydro founder and Proton Energy Systems owner. “We are very excited to partner with Toyota on this initiative, which will help connect people with hydrogen fuel cell technology”, said Sullivan. “The placement of the fuel cell vehicles in the Connecticut market will increase awareness of fuel technology and spur development of much-needed infrastructure prior to our planned market introduction in 2015.” Global Partners LP has closed on the first

leg of a $ 200 million acquisition of 221 Mobil-branded retail gas stations and supply rights for Massachusetts, New Hampshire and Rhode Island. All stations will continue to operate under the Mobil brand as part of a long-term branding agreement between ExxonMobil and Global Partners. Of the 221 stations covered under the transaction, 179 are located in Massachusetts, 22 in Rhode Island and 20 in New Hampshire. The stations sold approximately 370 million gallons of gasoline and diesel fuel in 2009.

‘After the disastrous Gulf of Mexico oil spill BP still remain stoic in the face of pressure from declining U.S. sales, boycotts, and protests from station owners. BP is facing pressure to rename its service stations but for station owners, changing brands isn’t easy, having spent tens of thousands of dollars in the past to be part of a well-established brand name.’

Georgia plans for new fuel stations

75 bio-fuel filling stations in California

sunHydro to receive toyota fuel cell vehicles

dining-out just got easier with exxonMobil

u.s. trailing in natural gas for transportation

Global Partners ac-quires Mobil in u.s.

bP faces pressure to change us name

Cardholders who register will earn a $ 50 dining certificate if they purchase 100 gal-lons of gasoline within 90 days of the date of registration. Offered by Restaurant.com, this certificate can be redeemed online at more than 15 000 restaurants and online merchants nationwide.

powered by compressed natural gas. The goal is about to be realized with the construction of a filling station that will serve Grand Junc-tion and Mesa County vehicles, as well as the buses of the Grand Valley Transit system. Filling stations in Rifle and Battlement Mesa also are coming online, Ludlam said. The Grand Junction station is being constructed with the help of grants from Encana, one of the largest natural gas producers in Colorado and in the United States.

Latest usa News – www.PetrOLPLaza.COM 21

USA News

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shell biofuels jv deal

spain’s green scheme stalls

dresser wayne produce electric vehicle charger

Brazil’s Cosan, the world’s biggest cane sugar and ethanol producer, should soon finalize a deal with oil giant Royal Dutch Shell over a $12 billion joint venture in biofuels, Cosan’s Chief Executive Marcos Lutz said last week. The two companies signed a memorandum of understanding in February. At that time it was estimated the deal could be concluded in up 180 days. Once the deal with Cosan is completed, it will mark the biggest-ever foray into biofuels by an oil major. The venture, which would create the No. 3 fuel distributor in Latin America’s largest country, under-scores cane ethanol’s lure as an alternative to gasoline. The 50 – 50 joint venture, with almost 4 500 filling stations nationwide, will better position Cosan and Shell to compete with the two top players on the Brazilian fuel distribution market, state oil giant Petrobras and Ipiranga, a unit of Brazil’s Grupo Ultra.

European clean energy company Acta has announced their plans for creating a network of solar-powered hydrogen fueling stations throughout Italy. The new pumps will work by harnessing solar energy to produce hydrogen fuel from water through the process of elec-trolysis. Using hydrogen has several advantages over using batteries. It doesn’t require long recharges and it makes emission-creating production lines unnecessary. And because it can work in tandem with batteries in a vehicle, it can easily become an alternative fuel in its own right. Italy has always been a strong

Giving a heightened sense of virtue to whisky drinkers everywhere, scientists in Scotland have discovered a way to produce biofuel out of the two main by-products of the golden brewUsing samples from the Glenkinchie Distillery, a producer of a popular Scotch single malt whisky, researchers from Edinburgh Napier University have produced butanol, which gives 30 percent more power output than ethanol. The butanol is produced using “pot ale”, the leftover fluid from the copper stills, and “draff”, the used grains. The whisky industry, which draws in over $5 billion a year, produces bountiful amounts of both waste products each year. The scientists behind the innovation say that there is high potential for the new biofuel, which will hopefully be available in gas stations alongside regular gasoline soon.

supporter of solar power & new legislation in the country makes it mandatory for all new fuel stations to have a minimum amount of photovoltaic panels installed, and to make available a gaseous alternative to traditional fuel like petrol and diesel.

The stated goal of having 2 000 electric vehi-cles on Spanish roads by the end of year will be unachievable. It was supposed to be the centrepiece of Spain’s green agenda: within four years a million electric cars would take to the roads, with battery top-up points sprouting up in petrol stations and disused telephone

At Automechanika last month Dresser Wayne demonstrated its ongoing commitment to green fueling technologies by exhibiting a full-scale concept model of an electric vehicle (EV)

charger. The company will focus primarily on DC fast-charge solutions for the independent retail-petroleum space, where charging time is critical.

booths across the country. “Electric vehicles are on their way”, said Prime Minister José Luis Rodríguez Zapatero as he unveiled the plans in April. “Let us get ahead and get them here sooner.” But figures released this week showed that Zapatero’s green dream is some way from realisation: in the first seven months of the year, only 16 electric cars were registered for use on Spanish roads. Even that was a sixteen fold increase on 2009, when just one electric car was registered. The failed attempt to kickstart Spain’s electric car market comes despite pledges of 80m euros of subsidies for those who buy by the end of next year – with the government funding 20 percent of the purchase, or up to 6 000 euros, on each car.

Italian stations install hydrogen fuel pumps

xxx News

ALTERNATIVEFUeL News

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drink can drive!

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websItes aNd LOGOs – suPPOrtING erPeCNews

www.air-serv.eu

www.alucobond.com

www.psdcodax.com

www.washtec.de

www.tokheim.com

www.stc-norway.com

www.dresserwayne.com

www.plxpipe.com

www.aspentech.com

www.atosworldline.com

www.ceccato.it

www.brugg.de

www.beverinnovations.com

www.bennett-sauser.ch

www.bennettpump.com

www.petrotec.eu

www.planova.com

www.sloanled.com

www.tammerneon.com

www.eurotank.eu.com

www.franklinfueling.com

www.hectronic.com

www.gilbarco.eu

www.fafnir.com

www.iisltd.com

www.istobal.com

TM

www.tebodin.com

www.nupigeco.com

www.mepsan.com.tr

www.mueller-offenburg.de

www.kaercher.com

www.leightonobrien.com

www.kpsystem.com

www.kubald.com

www.opw-fce.com

www.scheidt-bachmann.com

www.ruudlighting.net & www.ruudled.net

www.secu-tech.at

www.ono-oil.com

If you have not yet sent us your logo and website address, please do so for the next issue by mailing [email protected]

www.tanknology.com

www.belugacorporation.com

euraope n edition - erpecnews.com · oil inventories and modernising fuel sta- ... polish oil and...

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