Changes galore downstream
Inside Out
OVER THE LAST 17 POST MILLENNIUM YEARS THE COMPETITIVE LANDSCAPE OF THE UK & IRELAND’S
DOWNSTREAM OIL INDUSTRY HAS ALREADY SEEN MORE CHANGES THAN THE PREVIOUS 30 OR SO YEARS.
With changes happening in both the number/
identity of players, and in the ownership of
operations and facilities, it is worth retracing
these changes over this relatively short period.
Change has spanned the full spectrum of
downstream activity, from product sourcing
through to distribution, marketing and product
sales.
How the UK has
changed
Refi ning
At the turn of the century there were 9
refi neries; now there are 6. There have been
several changes of ownership with neither
BP nor Shell having any indigenous refi ning
operations.
2000 – Texaco’s Pembroke refi nery was
acquired by Chevron. In 2011 it was sold
to Valero along with Chevron’s other UK
downstream assets/interests.
2001 – Phillips Petroleum sold its Teesside
refi nery to Petroplus which closed the plant in
2009. Now owned by Navigator Terminals, the
site is an import and storage terminal.
2002 – Conoco’s Humber refi nery came
under the ownership of ConocoPhillips. When
the two companies split into upstream and
downstream entities, it passed to Phillips 66.
2005 – BP’s Grangemouth refi nery
was sold to Ineos which entered into a joint
venture with Petrochina to form Petroineos in
2011. The company also owns BP’s former
Dalston rail-fed terminal and supplies markets
in northern England, Scotland and Northern
Ireland.
2007 – BP’s Coryton refi nery was sold
to Petroplus, closing in 2012 following the
latter’s collapse. The site is now home to
Thames Oilport, an import and storage facility
jointly owned by Greenergy and Shell and
commissioned in 2016.
2007 – Total sold its 70% stake in Milford
Haven to 30% co-owner, Murco. Closed in
2014, it was acquired by Puma Energy in 2015
and converted into an import and storage
facility.
2011 – Shell sold its Stanlow refi nery to
Essar with the latter establishing a marketing
business in the commercial/wholesale, aviation
fuels and retail (dealer) sectors.
Marketing and distribution – signifi cant
overhauls at BP, Esso and Shell
2001 – BP sold its equity interests in
commercial/industrial fuels to DCC Energy
(Scottish Oils), OJ Williams and Q8 Fuelcare.
BP divested its owned fi lling station network
to large dealer groups including MRH, MFG
and Euro Garages which have branded supply
agreements.
2001 – Jet sold its company-owned fi lling
stations with Texaco doing the same in 2005;
both entered into branded supply agreements
with the acquirers.
2004 – Shell sold Shell Direct to DCC
Energy and acquired circa 250 former Total
fi lling stations from Rontec in 2011. In 2015
185 sites were put up for sale with the lion’s
share acquired by MFG and Euro Garages.
2010 – having adopted the US branded
jobber model for its UK fi lling station network,
Esso began divesting its owned network
(excluding around 200 Esso/Tesco alliance
sites) to groups such as MRH, Euro Garages
and Rontec appointing them as branded
wholesalers. Also a branded wholesaler,
Greenergy has taken most of the dealer
network.
2016 – BP’s Belfast terminal was sold
to Puma Energy and Nicholl Oils. Buyers
are also being sought for BP’s Hamble and
Northampton terminals as well as its 50/50
interest in Kingsbury (with Shell) and its stake
in UKOP.
Far reaching upheavals in the mini
majors plus new entrants Essar,
Petroineos and Puma Energy
2001 – Phillips Petroleum sold its Teesside
refi nery/marketing business to Petroplus; 2012
the latter went into administration.
2004 – Q8 Petroleum sold its marketing
interests to MRH which sold the Fuelcare
distributor business and Pace dealer network to
DCC Energy in 2011.
2011 – Total Elf Fina sold its retail/equity
distributor interests to Rontec; the latter
retaining the circa 500 owned fi lling stations
whilst divesting dealer sites and Total Butler to
DCC Energy.
2015 – Murco divested its Milford Haven
refi nery, wholesale fuels business and rail-
fed terminals at Westerleigh, Theale and
Continued on page 18
Rise of the importers and wholesalers
Probably the biggest change, in terms of
magnitude has been the greatly increased
presence of the importers/wholesalers
from a market share of around 6% in
2000 to somewhere in the 25%-30%
representation. In road fuels this sector’s
strength is nearer 40%-45%.
By far the largest operator, Greenergy
supplies in excess of 30% of the road
fuel market and is the major supplier to
supermarket sites. The company has
established a comprehensive logistics
network which provides national coverage.
In 2017 85% of Greenergy was
acquired by Canadian infrastructure fund,
Brookfi eld Business Partners, the company
acquired independent Irish fuel supplier,
Inver Energy in late 2017.
Mabanaft introduced Mabalive,
an innovative online pricing, f uel buying
and order administration facility, and has
become a jet fuel supplier at 9 airports. The
company owns BWOC, Silveys and Advance
Fuels.
State Oil/Prax Petroleum has
acquired terminal facilities in Cardiff
(formerly Gulf) and Jarrow (formerly Shell).
In 2015 Prax acquired competitor, Harvest
Energy with its network of circa 100 dealer
sites and a presence at a number of small,
regional airports.
Part of an international group, World
Fuel Services has a substantial presence
in both the marine bunkering and aviation
markets. In the UK, WFS has acquired
Linton Fuels and Watson Petroleum as well
as marine bunkering businesses, Henty Oil
and Tramp Oil & Marine, the latter providing
a supply presence at Falmouth.
Fuel Oil News | February 2018 17