Costco joins fuel war in Australia Petronas energy efficient stations

Issue No 23 | January/February 2013

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Costco joins fuel war in Australia

International discount giant Costco is scouring Melbourne for its first cut-price service station in readiness for a fuel war. The US warehouse chain has identified sites in the southern and northern suburbs. It hopes to have its first fuel pumps flowing within a few years. A new Costco

retail outlet will be built alongside the service station. Costco’s entry in the fuel market will intensify competition between the other two big players, Coles and Woolworths. Costco is awaiting State Government approval, expected in February, to roll out its first petrol outlet north of Brisbane. Costco Australia Managing Director Patrick Noone said the Costco initiative “will be competition, competition, competition. That’s the name of the game – we would like to have several stores in the Melbourne market”, he said. Putting pressure on the majors to do a better deal will increase competition.

Qatar Petroleum wants stake in Petronet LNGQatar Petroleum has expressed interest in buying a 5.2 percent stake in Petronet LNG Ltd, a potentially conflict of interest proposi-tion as it will give the gas supplier a vantage position as India’s largest fuel importer. Qatar Petroleum, the Persian Gulf country’s state-run energy firm, has majority stakes in RasGas and QatarGas that along with other liquefied natural gas (LNG) suppliers in the

world compete to sell fuel to India. If Qatar Petroleum (QP) picks up 5.2 percent stake as well as a board position in Petronet, it will give the company an undue advantage over other suppliers as it will be privy to price and other negotiations, sources in Petronet’s company said. This will possibly be the first instance of a LNG supplier picking up a stake in an importing firm.

Zambia talking to Gunvor and TrafiguraZambia has opened talks with foreign firms Gunvor and Trafigura regarding a two-year supply of oil and refined fuel starting this year, a senior government official has said. Energy secretary George Zulu said the gov ern ment was talking to Geneva-based Gunvor over the

supply of 1.4-million tons of oil and Trafigura on the supply of diesel and petrol. Ten foreign companies, including Glencore Energy UK, tendered to supply fuel to Zambia which had invited tenders after the expiry of a contract with Glencore.

Petronas energy efficient stationsTo maintain themselves as the local market leader in the oil and gas industry, Petronas Dagangan Berhad (PDB) has launched two new energy-efficient “twin fuel stations”. This new breed of station offer customers the convenience of a rest stop for their travelling needs with dif-ferent services and experiences. There are four energy-efficient characteristics which separate these two stations from the regular, specifically, having solar photovoltaic panel, light-emitting diode (LED) lights, rain water harvesting and nitrogen tyre-inflator. The solar photovoltaic panel has the capacity to generate around 200 KW of electricity per hour. This power source is equivalent to the energy needed to supply 90 households a year. With this innovative move, the stations can reduce greenhouse emissions by approximately 138 tons of carbon dioxide annually. The two station’s lighting installation reduces electricity expenditure while providing better lighting illumination to the area. Also, the LED lights are regulated by an energy management system which con-trols and manages the air-conditioning temperature at the station to provide a comfortable environment for customers. As part of Petronas’ water conservation efforts, the rain water harvesting system was built to prevent water being wasted. Approximately 82 500 litres is recycled!

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totAL unveils its new visual identityTotal Jordan has unveiled the new visual identity of its service-station network. ToTAL say that the ‘T-Air’ image is another sign of the continuous dynamism and innovation in ToTAL Group. Total Jordan will gradually roll out the new design in 2013 and 2014 at all of its service stations as part of its aim to strengthen its network’s identity with a more

contemporary image and more energy efficient installations. As of today, Total Jordan oper-ates 24 service stations employing about 500 people. The recent award of an oil Marketing Company License will allow Total Jordan to cement its position in the country and significantly enlarge its presence to be more accessible to every Jordanian.

tanzania – local tender for bulk fuelFor the first time since the introduction of the Bulk Procurement System (BPS) of purchas-ing fuel, a local company has participated in the tendering process and emerged as the winner. Gapco Tanzania Ltd is the first local company to apply and win the tender. It will supply 282 870 metric-tonnes of oil products for delivery in February this year. “We made the best offer with the support of our par-ent company, Reliance Industries”, Gapco’s Business Development Manager Natarajan Anand explained. The Indian conglomerate company, Reliance Industries, acquired the

petroleum marketing operations of Gapco in 2007. Gapco also offered the most competitive weighted average DAP Premier per Metric-tonnes which is worth $ 52.55.

esso plans 100 stations in three yearsEsso Thailand has outlined plans to grow its fuel retail network by 100 fuel service stations within the next three years. The company plans to have a network of 570 sites operational by 2015. Esso Thailand’s Director and Retail Sales Manager Yodpong Sutatham noted that

the company had renovated 200 of its fuel service stations over the past two years with another 100 to be renovated in 2013. Esso has allocated an investment budget of 1 bil-lion baht for business expansion this year, up from about 600 million baht spent in 2012.

Ptt offer e20 gasohol at 1 000 stationsPTT will expand to 1 000 the number of fuel stations pumping E20 gasohol, from 600 cur-rently, after the removal of 91-octane petrol from the market this year. The company’s E20 gasohol campaign that started in August last year had doubled the sales of this fuel, which is 20 percent ethanol, to 24 million litres per day. During this year PTT wil convert its 91-octane pumps to distribute 95-octane petrol and E20 gasohol, with more focus on the latter. The company plans to pump E20 at 400 more stations than the current level,

for a total of 1 000 stations nationwide. It has also drawn up a comprehensive plan to promote E85 gasohol.

Pertamina plans downstream investmentIndonesian state oil firm Pertamina plans to invest $ 6.77 billion in its upstream and downstream arms as it seeks to boost pro-duction and strengthen the country’s energy infrastructure. The investment has been confirmed in the company’s 2013 budget and work plan following a meeting of the general shareholders. “our investment strategy this year will be focused on major projects that will smooth the progress of Pertamina to becoming a world-class energy company”, remarked Karen

Agustiawan, Pertamina’s President Director. 46 percent of the investment, $ 3.1 billion, has been allocated to the upstream business, where the company plans to increase crude output to 244 000 barrel per day. Pertamina will invest $ 638 million and $ 546 million in its refining and marketing business respectively. Lubricant sales have been targeted as a key source of growth: the company plans to sell 680 000 kilolitres of lubricant products this year, up from 617 000 kilolitres in 2012.

News – MIDDLe eAst, AFrICA & AsIA


Unioil to expand retail networkSmall fuel company Unioil Philippines Petro-leum Inc. is looking at investing a minimum of 200 million Phillipine pesos as it plans to further expand its retail network. Unioil say they plan to put up 10 to 12 service stations this year and between 10–12 stations annually over the next three years. They expect a 15 percent growth in sales volume in 2013 driven by their planned expansion. The company is

focused only on building company-owned stations however they are not closing their doors to dealer-owned stations. Recently Unioil launched its “Go Green Future Cam-paign”, which promotes Euro Diesel IV fuel available in all of its service stations. They are sourcing Euro Diesel IV stocks from Singapore and is more than two years ahead of the 2016 mandate.

engen – largest fuel supplier in Kenya

In what is expected to diminish the practice of oil price fixing in Kenya, Engen, has signed a strategic partnership with the Kenya Inde - pen dent Petroleum Dealers Association (KIPEDA). Under the deal, Engen is expected

to supply (as the sole supplier of the group) fuel, lubricants and technical support on fuel station operation, to independent dealers that have no links to multinational oil majors. KIPEDA went into strategic partnership with Engen, which the group felt could help it leverage the strength of its members to their collective benefit. Independent indigenous Kenyan dealers operate more than 500 sites currently – making up half of the Kenyan retail fuel sector. The deal with Engen is expected to overcome erratic fuel and lubri-cants supply, uneconomic price margins and lack of access to quality products.

Nigeria to build 30 new fuel stationsThe Nigerian National Petroleum Corpora - tion (NNPC) plans to build new petrol sta-tions for about 4 billion naira this year even as it said that the Federal Government lost 241.93 billion naira to crude theft between 2006 and last year. The highest 98.03 billion naira theft was recorded in 2011. The nation

lost another 105 billion nairas to pipeline vandalisation in Niger Delta. These figures were contained in the NNPC’s 2012 budget performance and its proposed 2013 budget which it submitted to the National Assembly Joint Committees on Petroleum Resources (Upstream/Downstream/Gas).

Chinese firm to build $ 7.5 billion refinerySino Arab Energy (SAE), a Chinese firm, has concluded plans to build a refinery at Akabuyo, in the Local Government Area of Cross River State, Nigeria in partnership with a local firm, osabo Refining and Petrochemi-cal Industry Limited. The refinery, which is expected to process 107 000 barrel per day of crude, has been valued at $ 7.5 billion. Hon Etim Effiong okon, a member of osabo’s

management team, said that the process for the procurement of requisite licenses to establish and operate the refinery had commenced. He promised that Akwa Esuk Eyamba, the community where the refinery will be located, had donated 500 hectares of land for the facility. The refinery is set for completion within five years, with construc-tion beginning in 2014.

Israel backs alternative fuels to petroleumIsrael’s Government has backed the develop-ment of compressed natural gas, methanol mixes and other fuel alternatives, noting that non-petroleum fuels will reduce the country’s dependence on oil. 2013 to 2025 will become a transition period for Israel’s transportation sector to non-petroleum alternative energy sources. A team led by National Economic Council Chairman Professor Eugene Kandel was formed in 2010 to formulate national policy on reducing petroleum dependence and calls for

1.5 billion shekel state investment in alterna-tive fuels over the next decade. The plan is to reduce the weight of petroleum as an energy source for transportation by 30 percent in 2020 and 60 percent in 2025. The proposal also mandates that the government must establish a comprehensive action plan for alternative fuel integration, while simplifying bureaucratic and regulatory processes that will promote techno-logical developments as well as infrastructure growth for alternative transportation.

Indian refiners con-tribute to growth – IeAIndia’s refiners were some of the biggest contributors to global refining growth dur-ing 2012, according to the International Energy Agency (IEA). In its latest figures, the energy watchdog reported that India 4.5 million barrel per day of crude oil in october, 680 000 barrel per day higher than a year earlier. In the year to october 2012, crude runs are up 260 000 barrel per day on 2011, accounting for almost half of global crude throughput growth in the same period. In 2013, another 400 000 barrel per day of capacity could be added if Indian oil Corporation’s 300 000 barrel per day Paradip and Nagarjuna’s 120 000 barrel per day Cuddalore refineries are completed on schedule. However, the IEA noted that further investments planned for the medium term are getting increasingly hard to justify, as India’s state refiners have to supply the domestic market at subsidised prices.

bPC Corporation finalises contractsBangladesh Petroleum Corporation (BPC) said that it finalised contracts with eight foreign companies to import oil products for the first half of this calendar year at mostly higher premiums than in the current contracts. BPC is the country’s only oil importer and distributor. The government ‘generously’ subsidises the BPC that sells fuel-oil to the local market at lower prices than the import rates. The total subsidy for the year to June 2012 was Taka 460 billion ($ 6 billion), which is above double the original estimate of Taka 200 billion and up from Taka 195 billion in 2011.

Fuel subsidy bill rising in in egypt Egyptian General Petroleum (EGPC) Chairman Hani Dahi warned that costs of fuel subsidies is growing and may reach 30.9 billion Egyptian pounds ($ 4.79 bil-lion) for the first quarter of the calendar year. Dahi said that Egypt have spent 30 billion pounds each quarter subsidising fuel since the current fiscal year began 1st July. 20 percent of the country’s public expenditure is absorbed by fuel subsidy.

“Spending on fuel subsidies in the third quarter will rise between 2 percent to 3 percent”, said Dahi. Egypt is currently working to finalise an IMF loan for $ 4.8 bil-lion, while EGPC owes foreign partners a total of $ 4.5 billion.




Nepal allows private firms to importNepal’s government is considering allow-ing private companies to import crude oil products which would resolve chronic fuel shortages and end the state’s monopoly on a trade worth about $ 1 billion a year, a trade ministry official has said. Nepal buys all its fuel from abroad and state-run Nepal oil Corporation (NoC) is currently the sole importer of the 21 000 barrels per day of crude oil products the country needs. NoC, however, is plagued by insufficient storage capacity, a poor transport network and dif-ficulties in paying its sole supplier, Indian oil Corp, creating frequent fuel shortages and long queues at fuel stations. “We want to open up the fuel business to the private sector. Private firms will be able to import,

store and distribute fuel, oil and lubricants just like the NoC does”, said Lal Mani Joshi, the most Senior Bureaucrat at the Ministry of Commerce and Supplies and chairman of NoC’s board. A proposal to allow imports by the private sector has been submitted to the cabinet, Joshi said, adding that it was not immediately clear when it would be approved.

Nigeria imports fuel from the NigerThe operations Controller at the Department of Petroleum Resources (DPR), Alhaji Syyadi Suleiman Abubakar, has said that Nigeria now imports diesel and petrol from Niger Republic, as his department closed 10 filling stations over an allegation of selling the prod-uct above the official retail price. Abubakar is looking to ensure that long queues at fuel

stations disappear. According to him, the government has no financial commitment on importation of diesel and gas from Niger Republic as the two products had already been deregulated. He also confirmed that about 80 percent of fuel stations were not getting petroleum products from the depot, due to scarcity.

Conoil adds 60 fuel stations this year

oil marketer, Conoil Plc, will in 2013 establish 60 new retail outlets spread across Nigeria as part of its major strategic expansion pro-gramme. The expansion programme will

foresee a 4.8 bil lion naira investment and it is aimed at growing the company’s sales and revenue by over 65 percent, according to a statement. It is projected that the new stations will complement the company’s plan for massive importation of refined petroleum products this year. The retail outlets, Conoil added, would offer robust and automated network, which would lever-age on technology to deliver the assurance of quality products and improve service efficiency at the forecourts. The expansion project represents the second phase of the company’s comprehensive four-year plan which started two years ago.

engen goes ‘Green’ in sub saharan AfricaEngen has completed its greening pilot at three African retail service sites, making multiple energy- and water-saving altera-tions. It now believes it has identified the most effective and efficient sustainability interventions for its purposes, ones that can decrease its carbon footprint and operat-ing costs when rolled out more broadly. In subsequent projects, the group will focus on greening more of its retail sites in its 19 territories across sub-Saharan Africa and the Indian ocean Islands and, after that, turn to its depots and offices across the group.

Petronas completes acquisitions Petronas Dagangan Bhd (PDB) has an-nounced the completion of its acquisition of Petronas Vietnam Co Ltd (PVL) and Thang Long LPG Co Ltd (TLLCL) in Vietnam in accordance with the terms of the share sale and purchase agreements dated 1st June 2012. In a statement from Kuala Lumpur in Malaysia, Petronas noted that both PVL and TLLCL will be held by PDB following the completion of the acquisition, via its newly incorporated and wholly-owned investment holding company, PDB (Netherlands) BV. “Following this, PDB has completed the acquisition of all the six downstream companies in South East Asia”, said the Statement. As part of the company’s expansion strategy in South East Asia, PDB will undertake targeted investments to propel future growth for these newly acquired companies.

Puma energy buys major independentIn Australia Puma Energy plans to win local market share after buying up over 120 fuel service stations having bought Neumann Petroleum.


News – eUroPe

eNI expanding into vietnamItalian energy company ENI announced it signed a memorandum of understanding to explore potential business opportuni-ties with state owned PetroVietnam. ENI Chief Executive officer Paolo Scaroni met with PetroVietnam President Do Van Hau in Rome for the signing of the MoU. The MoU gives PetroVietnam the chance to

expand its international footprint while allowing ENI to enter into developments in Vietnam. The CIA World Fact Book estimates that Vietnam in 2011 produced 318 000 barrels of oil and 300 billion cubic feet of gas per day. Scaroni added that the Vietnam company would gain from training opportunities from his company.

MFG adds 10 stations to networkTop 50 Indies forecourt operator, Motor Fuel Group (MFG) has grown its network to 58 stations with the acquisition of 10 stations from Shell. Jeremy Clarke, MFG’s Managing Director said: “This acquisition adds some high volume stations to our network. They all fit into our model by offering customers a great forecourt and shop offer.” He continued: “All of these

new stations are now BP branded and after a shop refit they will be offering the extensive and competitive range of Cost-cutter products. “It’s good to end our first year of trading with some positive news. We will continue to look at opportunities for growth during 2013 while maintaining our on-going investment on our forecourts and in our shops.”

NIs opens in balkans under GAzProM NeftNIS (Naftna Industrija Srbije), a subsidi-ary of Gazprom Neft, opened its first fuel station under the GAZPRoM brand in Belgrade. A large-scale project to launch a new premium retail chain of GAZPRoM fuel stations will in the future be extended to other countries in the Balkans. The retail development under the new brand is planned in Serbia, Bulgaria, Romania and Bosnia and Herzegovina with the stations in Bulgaria and Romania opening shortly. By the end of 2013, the GAZPRoM network

will consist of approximately 100 fuel sta-tions. NIS will manage GAZPRoM petrol stations in the Balkans.

turkey – an expensive fuel hotspotTurkey is one of the world’s most expensive fuel hotspots despite the reductions in tax, Finance Minister Mehmet Şimşek has said. The high prices are determined by free market conditions as direct or indirect state intervention has been capped off. He said the state’s regulations like formation of refinery prices with an index, or setting

an upper limit for the shares of distribu-tors and carriers, have been eliminated in addition to decreases in taxes. “Although fuel prices have increased for years, the tax burden hasn’t, on the contrary it decreased for the last 10 years.” Most recently, the Finance Ministry raised taxes on fuel oil, diesel fuel and LPG.

repsol complaint up-held by world bankThe World Bank’s arbitration body has begun investigations after accepting a com-plaint from Repsol regarding Argentina’s expropriation of its controlling stake in energy company YPF. Repsol’s complaint – which follows the seizure of the company in May – could be one of the largest claims against the country. Repsol has valued its 51 percent stake in YPF at $ 10 billion. However, Argentine officials have indicated that they are not prepared to pay this, while the country’s Planning Ministry has formed a committee to determine the value for compensation purposes. Repsol and the Argentine Government must each name an arbitrator to sit on a three-member panel that will oversee the case. The third member of the panel must be agreed by both sides.

spain and Ireland sign agreementSpain and Ireland have both signed an agreement to maintain oil reserves for ‘petroleum emergencies’. Both countries have decided to join a European standard which states that countries must main-tain minimum reserves of crude. It also states how to handle such reserves and that periodic reports must be submitted to the European Commission on those levels. Both countries are also obliged to punish any company that do not comply with their obligations provided for in the legal framework. This agreement facilitates the free movement and treatment of oil between the two countries.

HKs & bP agree new supply dealUK Independent retailer HKS has agreed to extend its long partnership with BP, signing a new supply deal with the oil major. The new deal will run for five years.



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News – eUroPe

LUKoIL to expand network in turkey

oAo LUKoIL of Russia is in exclusive talks with Full, a Turkish discount fuel retailer, to operate its fuel stations for 10 years, accord-ing to Full CEo Timucin Tali. Tali has said that currently Full’s stations are closed for LUKoIL inspections. Global energy compa-

nies are seeking expansion in Turkey where economic growth is forecast at 3.5 percent this year and about twice the pace of the most advanced economies to 2017. LUKoIL oper-ates in the country through its Eurasia Petrol unit, which has more than 600 fuel stations across the country. The nation is increasingly becoming an “energy hub” connecting Europe with Asia, according to the company’s website. LUKoIL is discussing financial details of the deal with Full, which is owned by AR Sirketler Grubu’s Arista Holding. Under the agreement, LUKoIL Eurasia Petrol would rebrand Full’s 54 stations under its own name.

PKN orLeN and statoil sign agreementPolski Koncern Naftowy oRLEN S.A. have announced that the Management Board of AB oRLEN Lietuva signed a one-year agreement with Statoil Fuel & Retail Lietuva, UAB. The agreement was signed for the sale of gasoline and diesel by oRLEN Lietuva to Statoil Fuel & Retail Lietuva for the period between 1st January 2013 and 31st December

2013. The estimated net value of the agreement amounts to US $ 330 million. Agreements signed between PKN oRLEN and PKN oRLEN subsidiaries and companies from the Statoil Fuel & Retail group from February 2012 to January 2013 amounted to approximately US $ 792 million. PKN oRLEN owns 100 percent shares of oRLEN Lietuva.

Trafigura supplying fuel to EnemaltaThe fuel contract was awarded to Trafigura in December 2012 for the provision of between 160 000 metric tonnes to 176 000 metric tonnes divided into eight partial shipments with a contract period from the fourth week of January to the fourth week of June 2013.

Trafigura provided not only the cheapest offer but fulfilled the criteria requested by the invitation to tender relating to quality and quantity of the product, delivery periods, and other requirements such as insurance cover, jurisdiction of contract, and payment terms.

repsol and Fiat join forces in LPG ventureFiat and Repsol have agreed to promote the sale of vehicles fueled with autogas (LPG automo-tive) and encourage the use of this alternative fuel in Spain. Repsol leads Autogas distribution in the domestic market while the Italian brand

offers the widest range of vehicles powered by LPG, a segment in which ranks first in sales in Europe. The agreement was signed by the CEo of Fiat Group in Spain,Luca Napolitano and the CEo of Repsol LPG, José Manuel Gallego.

shell takes over Neste network in PolandAnglo-Dutch fuel giant Shell signed an agreement with Neste oil for the purchase of Neste’s fuel stations in Poland for EUR 80 million, Neste oil has said at its website. The transaction is to be finalized in the first half of 2013. Neste has 105 filling stations in Poland & Neste Polska generated 250 million euros sales in 2011. Fuel groups PKN orlen and Lotos were also interested in purchasing Neste’s Polish fuel chain.

oMv sells marketing subsidiary in CroatiaoMV Hrvatska is a 100 percent-owned subsidi ary of oMV Refining & Market-ing GmbH em -ploy ing 63 staff members at its head office in Zagreb, has 62 filling stations and a market share of around 13 percent in

Croatia. Following the completion of this transaction, which is subject to approval by competition authorities, oMV will have no further refining and marketing activities in Croatia.


News – eUroPe

bP says oil will remain king to 2030British oil giant BP expects unconventional sources of crude and other fuels to supply a larger amount of the world’s energy needs over the next 20 years and oil will remain the primary fuel for transportation. As far as overall energy consumption, BP believes oil will decline over the next two decades, while gas and coal will rise. The company made the predictions as it released its updated 2030 energy outlook. It is the third year in which the company has released the expectations publicly. “This outlook is a projection, not a proposition”, Chief Executive Bob Dudley declared during a presentation from London that was carried over the Internet. BP, Royal Dutch Shell and Exxon Mobil are among the companies that each year publish outlooks that forecast the future of the energy sector. The goal: To figure out what the world will look like in the future so they can make the most profitable exploration and production decisions today. By releasing their conclu-sions publicly, these companies also spark an annual conversation about the world’s energy needs.BP’s updated projections include: Energy demand is expected to be 36 percent higher in 2030 than 2011, with almost all the growth coming from emerging economies. Growing production from unconventional sources of oil – tight oil, oil sands and biofuels – is expected to provide all of the net growth in global oil supply to 2020 and over 70 percent of growth to 2030. By 2030, increasing production and moderat-

ing demand will result in the U.S. being 99 percent self-sufficient in net energy; in 2005 it was only 70 percent. The U.S. will remain a small net importer of oil, although net imports will decline by about 70 percent. Major emerging economies such as China and India will become increasingly reliant on energy imports. These shifts will have major impacts on trade balances. Russia will remain the world’s largest energy exporter, with increases in exports of all fossil fuels. By 2030, Saudi Arabia will be the world’s largest oil exporter, although the trajectory over time will be impacted by the likelihood of oPEC production cuts. “Fears of oil running out, to which we never subscribed, appear increasingly groundless”, Dudley said. At London-based BP, a 10-member team works year round on the company’s energy projections, which include assump-tions on changes in policy, technology and the economy. Internal and external experts are consulted, public and private data and reports are reviewed and existing regulations and how they may change in the future are considered.

More focus on It Managers at erpec 13

With technology on a typical fuel station becoming ever more sophisticated and with dispenser manufacturers focusing as much time on selling software systems as they are selling pumps, the IT Manager in oil company retail operations, is becoming one of the most important members of the engineering team.At a recent industry trade fair, VP Global Strategic Accounts and Global Marketing at Wayne, Brad Schumacher, pointed out that IT executives now play a major role in the development of effective retail software solutions on the forecourt. He added that at major industry gatherings it is becoming

more and more important for IT personnel to be in attendance alongside technical and procurement executives, a point not lost by Nick Needs, organiser of erpec, who has extended invitations for next year’s event to include IT departments from all the major oil companies. Commenting on this he said: “We have had some good response to this initiative from a number of oil companies attending and have been delighted to receive our first registrations from IT related people, in this instance coming from the MoL Group in Hungary, nominating its Head of Global Industrial IT Solutions Development and its Thematic Leader of Global Retail / Card Application Development, as part of its five man delegation team”.Places are still available at erpec 13 for oil companies, major retailers and international suppliers of retail petroleum equipment. Taking place in Nice, France from 16 – 18 April 2013. More details can be found at www.erpec.com


Family firm has big growth planMaxol is stepping up expansion in post-boom Ireland – picking potential sites carefully and providing much-needed jobs to these locali-ties. It’s fair to say that Maxol does not fit the stereotypical image of ‘big oil’. Some 90 years after it was founded by the McMullan family, the business is still a far cry from the ‘Dallas’ image and its Chief Executive, Tom Noonan, is about as far away from JR Ewing as you can get. Maxol has been something of an anomaly in Irish industry in recent years. While it seemed for a while that every busi-ness was expanding rapidly and was reporting turbocharged profits, Maxol was pottering along at a steady pace, but was hardly setting the world on fire. Cut to today and many of those turbocharged profits have disappeared

as quickly as they appeared, but Maxol is still carrying on as it always has. Under Noonan, there are now about 225 Maxol service sta-tions around the island. With turnover of close to 650 million euros a year, the business is growing steadily but is now planning a huge expansion.

bP and rosneft plan tNK integrationThe news followed talks between BP Chief Bob Dudley and Rosneft president Igor Sechin in Moscow who met for only the second time since late october, when the pair agreed a $ 27 billion (£ 17 billion) deal that would see BP sell its half of the venture. BP has taken a near-20pc stake in Rosneft as part of the deal and has told its shareholders it believes it can help to drive synergies and boost returns. Rosneft has also agreed to buy the other half of TNK-BP from BP’s oligarch partners, the

Alfa-Access-Renova consortium, with both deals expected to complete in the first half of this year. Mr Sechin will chair the steering committee co-ordinating the integration of TNK-BP’s assets. In a statement, BP and Rosneft said they had “confirmed their commitment to efficient integration of the companies and agreed that the process is a unique opportunity to bring many of the world’s best business and technical practices into the combined company in a short time frame”.

Low quality fuel in bulgaria shrinksThe share of low quality fuel on the Bulgarian market has decreased five-fold over the past four years, according to Petar Kostadinov from the State Agency for Metrology and Technical Surveillance (SAMTS). Kostadinov explained that the share of poor quality fuel on the Bulgarian market amounted to slightly over 3 percent in 2012. The SAMTS Chief Secretary, as cited by Darik radio, made clear that offenders used a range of components to dilute fuel, thereby lowering its quality. Kosta-dinov specified that the share of low quality

fuel had only registered slight decreases by 2009. He noted that it had taken other EU member states 4–5 years to curb the share of substandard fuel after the imposition of strict control, while the process in Bulgaria had necessitated 6–7 years. The expert argued that the share of 3.4 percent of poor quality fuel in 2013 placed Bulgaria at a good level around the EU average. He underscored that Bulgaria had reached a good score in curbing sales of poor quality fuel on the tenth year after imposing stringent control.

PKN takes write-down on UnipetrolPKN orlen has written down the value of its Czech refining arm Unipetrol, a move that pushed the company into a quarterly loss of US $ 227 million. PKN has a 63 percent share in Unipetrol and recorded a US $ 236 million impairment on the holding. Unipetrol’s Head of Investor Relations, Michal Stupavsky, said Uni - petrol may be selling assets in the near future, including the Paramo unit, which ended processing of crude last year. “The sale is very likely in the foreseeable future”, he said, declining to comment on a possible buyer for the business.

totAL refinery to restructure

ToTAL’s Lindsey oil Refinery in the UK is set to become a separate company as part of a restructuring process to create 24 new jobs at the site. ToTAL LoR will become a separate company from Spring 2013, assuming day-to-day control of ToTAL’s refining business, storage terminals and logistics infrastructure in Britain. ToTAL has invested more than £ 600 million in the 220 000 barrel per day plant in recent years. The site returned to profit in autumn of 2012. The independent company will incorporate Lindsey’s 1 000 strong team of employees and contractors, along with the employees and management operations at terminals across the UK.

News – eUroPe


News – eUroPe

DCC wins approval for acquisitionDCC PLC has announced that the UK office of Fair Trading (oFT) has formally cleared the company’s acquisition of BP’s LPG business in Britain. The acquisition was completed in late September 2012. DCC had undertaken

to hold the BP LPG business separately from its Flogas brand pending approval. Following the oFT’s decision to approve the transaction, DCC said, it is now free to integrate BP’s LPG distribution business with Flogas.

Phillips 66 announces new dealer services In the UK Phillips 66 has introduced two new initiatives aimed at increasing the profitability of dealers under their Jet brand. The firm is partnering with leading equipment suppliers Tokheim and Istobal to add the new services. Tokheim is fulfilling a dispenser maintenance contract, responding to research carried out by Phillips 66 into the pump maintenance requirements of a cross-section of its Jet dealers. Istobal, meanwhile, if offering a free health check for the car washes, jet washes, air machines and vacuums at Jet sites. “We pride ourselves on continually meeting and

listening to our dealers. At the heart of any dealers’ business are the fuel pumps. Without them operating to their full ability, customers are simply unable to buy fuel and are unlikely to return, due to their perception that ‘Jet pumps don’t work”, explained Sharon Morrow, Brand and Communications Co-ordinator at Jet. “It’s vital for us to learn and understand dealers’ requirements, to enable them to be able to excel in their operations. We believe our new pump maintenance contract will improve not only service to our dealers, but also the service they offer to their customers.”

First motorway stations in Northern IrelandPlanning permission has been granted to build Northern Ireland’s first motorway fuel stations. For the first time, Northern Ireland commuters will not have to exit the motorway in search of fuel. The four proposed stations will include direct slip roads from the motorways in both directions, giving what the operators hope will be quick and

easy access for drivers. Their development will provide a significant boost to the local economy, with a potential investment of some £ 20 million. The construction will be done in phases, allowing the fuel stations to open before the other facilities. The development has already been recommended for approval by DoE Planning.

supermarket fuel ‘puts 1 000 independents at risk’In the UK up to 1 000 independent forecourts could be “wiped out” by 2017 as they lose cus-tomers to new supermarket fuel stations, the Petrol Retailers’ Association (PRA) has warned. An average of 40 supermarket forecourts a year have been granted planning permission since 2009, a study by Christie & Co on behalf of the trade body has found. Steve Rodell, head of retail at Christie & Co, said: “If applica-tions continue at the same rate and there is no reason to believe that will not be the case, there will be another 160 supermarket sites

by the end of 2016.” Supermarkets seeking to establish more “standalone” forecourt sites could result in the opening of a further 25 to 40 new fuel stations operated by the retail giants each year, the PRA said. It claimed that “every new supermarket site is sucking the equivalent volume of five independents out of the market”. Brian Madderson, PRA Chairman, added: “If left unchecked the expected growth in supermarket forecourts would kill off 1 000 independents over the next four years.”

soCAr rebrands esso stations

The State oil Company of Azerbaijan (SoCAR) has began the re-branding and re-development of its network of Esso fuel stations acquired

from ExxonMobil Esso Switzerland GmbH. SoCAR Energy Switzerland’s General Director Edgar Bachmann has stated that before the 2nd half of next year the 160 Esso petrol sta-tions will operate under brand SoCAR flame. SoCAR believe their ‘flame’ logo is a highly visible symbol of the best service in the retail and energy business. They want to provide the widest distribution of this new premium brand in Switzerland, requiring high-quality, exceptional customer service, high standards of safety and good government.

French fuel consump-tion decreases in 2012 According to the latest figures from the Professional Committee of oil (PDCC), deliveries of fuel on the French market totalled 3.91 million cubic meters in December 2012 (-2 percent compared to December 2011). This decrease resulted from a decrease of 11.4 percent deliveries superfuels SP and a decrease of 5 percent of deliveries. The general decline seems to result from both improved energy performance of vehicles and consumer rejection of high price fuel.

Fuel giant PKN orlen pushes up pricesPolish oil refiner and petrol retailer PKN orlen has raised its wholesale prices of unleaded petrol and diesel. According to a statement released by the company in Plock, Central Poland, wholesale prices for its Superplus 98 and diesel fuel will rise. Fuel stations will adjust the ultimate retail price, with costs unlikely to go beyond an increase of 0.002 euro per litre. The current rise marks the eighth hike in fuel prices in a year. PKN orlen, which also operates in the Czech Republic, Germany and across the Baltic states, is among the largest oil companies in Europe.

shaws Petroleum agrees saleShaws Petroleum UK is to be swallowed up by Midlands Co-operative Society after the company’s Managing Director, Paul Sykes, agreed to sell his company for an undisclosed amount. Sykes, who has led the company for 35 years, saw his company record a £ 30.5 million profit last year, £ 22.2 million of which came from fuel sales. The company has five fuel service stations actively trading at present.

topaz invests to secure jobsTopaz Energy, Ireland’s largest fuel and convenience retailer, has invested €1.35 mil-lion euro in five fuel service stations to secure 82 jobs, preventing the closure of the sites, bringing the company’s work-force up to over 1 600 people. Topaz has continued to grow its business despite challenging local market conditions. The company’s turnover has reached 3 billion euro, with 1.8 million euro transactions taking place every month across a network of 328 fuel service stations.


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

KPs opens new subsidiary in turkeyKungsörs Plast AB, the supplier of the KPS Petrol Pipe System™, announced that a sub-sidiary opens in Turkey with Mr Ali Güler as Regional Sales Manager, working out of Istanbul. Staffan Helleday, Sales Director KPS HQ and Ali Güler, Regional Sales Manager KPS Turkey. Mr Güler will fur-ther strengthen the customer support and service offer in Turkey and he will continue the training system and introduce the KPS Petrol Pipe System™ conductive system all

over the country. Staffan Helleday, Sales Director of KPS said: “KPS welcomes this progress and we are very positive towards the expansion in Turkey and we are accelerating our activities further by setting up a local sales subsidiary and warehouse to serve our customers in Turkey better.” We invite you to come and meet KPS Turkey at Petroleum Istanbul Exhibition between the 11th and 14th of April 2013. Welcome to our booth in Hall 8, at Petrol Expo.

New tokheim Italy website is online

Tokheim, one of the world’s largest suppliers of fuel retailing solutions, announces the launch of its new Italian website as part of its global rebranding strategy. The new Italian website gives an overview of all products and services relating to the local marketplace. News that is relevant to the Italian fuel retailing sector will be regularly updated. A new set of addi-tional sales material for all of Tokheim Italy’s

products and services is now also available to download. Fabiano Clerico, General Manager Italy, says, “Tokheim is the largest supplier of solutions to the fuel retail sector in Italy. It is important that we are able to share the exciting range of products and services we offer in a clear and innovative manner. our customers have moved more towards digital communications and we are happy to com-municate with them in a more modern way. We will continue to engage with customers through our social media platforms.” Tokheim’s website was recently nominated for a CSS Design Award and it is now available in Ital-ian, English and French. Additional country specific sites will go live in the coming months. To visit the Italian website directly, go to www.tokheim.com/it.

NUPIGeCo PP-rCt NIroN systemNUPIGECo has obtained its first certificate of conformity IIP for its NIRoN piping produced with PP-RCT raw material. PP-RCT is a new generation of polypropylene, already included in EN ISo 15874 standard. It represents the evolution of Polypropylene Random with bet-ter performance than its predecessor PPR80. Furthermore, with the same outside diameter, the flow rate of the fluid is higher. PP-RCT allows for a more stringent classification, per-

mitting it to reach class 5 of the EN ISo 15874 standard (performance at high temperatures) before reserved only for PEX and PB. The high performance ability of the material allows it to achieve the same performance as PPR80 by reducing the wall thickness and increasing the flow rate of the fluid. NUPIGECo S.p.A - Via Stefano Ferrario Z.I. Sud-ovest - 21052 Busto Arsizio (VA) Italy - tel.: +39.0331.344211 - fax: +39.0331.351860 www.nupigeco.com

retalix shareholders approve NCr buy-outShareholders in Retalix, a provider of soft-ware and services for fuel retailers, have approved a takeover of the company by NCR Corporation. The transaction remains subject to regulatory approval and certain other closing conditions, while at least 30 days must pass before it becomes effective under Israeli law. The Takeover is expected to be completed during the first quarter of this year. The company serves a customer base of approximately 70 000 stores across more than 50 countries from its head-quarters in Ra’anana, Israel and its North America headquarters in Plano, Texas.

wincor Nixdorf enters mobile wallet space Wincor Nixdorf Inc., a leading provider of IT solutions and services to retailers and retail banks, is rolling out the Wincor Wallet for mobile cashless payments in all retail sales channels, including fuel stations, turning the smart-phone into a wallet.Whether in stationary retail, web shops or mobile stores, the Wincor Wallet can be accessed for mobile payment by all standard smart-phones through the use of QR codes or near-field communication (NFC) technology. The Wincor Nixdorf ’s Payment Gateway server operating in the background enables the solution. In addi-tion to processing traditional, card-based payments, this also allows modern Wallet transactions to be processed in an IT en-vironment certified by the Payment Card Industry (PCI), which ensures the security of the cashless transactions. The Wincor Wallet provides a platform for combining different mobile payment and loyalty solu-tions such as mobile use of debit or credit cards, mobile coupons or redeeming mobile vouchers at the checkout via smart-phone, the company said.


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

Codax helps shell control car wash salesPSD Codax is helping retail giant Shell strengthen control of car wash sales at its UK forecourts. New Codax Code Generator technology is being integrated with point of sale (PoS) systems at more than 150 Shell UK forecourt sites following a deal with PoS IT support company Wincor-Nixdorf. Linking Codax technology with its PoS systems will enable Shell head office to gather accurate data about car wash sales and customer buying habits. It will also help retailers improve revenue control and simplify the sales process for shop staff who will be able to sell washes direct from their PoS screen.

A single Codax Code Generator Terminal (CCGT), which has ethernet connectivity, eliminates the need for under-counter wiring and multiple Codax ticket printer terminals. The CCGT plugs directly into the in-store network so that all PoS terminals can be used to sell car wash and jet wash programmes and customer access code tickets are then printed by the local PoS retail printer. Car wash codes are issued only after a sale has been completed which stops unauthorised issues and speeds up the sales process and greatly improves the daily reconciliation process for station managers.

relaunch of Hectronic company websiteHectronic is proud to introduce its redesigned website. The comparison between the old website, on the left hand side and the new version, on the right is shown below. There have been significant renewals, especially with regard to the Hectronic image change from a product manufacturer to a solution provider. Hectronic’s updated website has a new “Solutions” area where you can find

intelligent and perfectly coordinated system solutions for fuel station management. Fur-thermore the new design of the site is matched to Hectronic’s Corporate Design. Visitors can access the three main areas directly from the home page: Parking, Refuelling and Sensor Systems. The redesigned website gives users a quick and structured overview about the entire Hectronic portfolio.

washtec strengthens activities at the truckwashWashTec, a leading manufacturer of vehicle wash systems, has big plans for 2013 and puts specifically the cleaning and mainte-nance of busses and trucks in the focus of its activities. New product manager for the bus and truck wash division Hans-Peter Popp

has announced the roll-out of a number of different products for the new commercial line MaxiWash. Prior to joining WashTec in 2006, Popp worked for many years as a product manager in the commercial vehicle sector.

Franklin appoints southern African Master DistributorsSouthern African Master Distributors has been appointed as an official distributor of UPP piping and containment systems for Franklin Fueling Systems, the companies have announced. “With effect from 21st January 2013, Southern African Master Distributors will undertake the Southern African distri-bution of Franklin Fueling Systems Piping & Containment, featuring UPP semi-rigid pipework, Gemini secondary containment and electro-fusion containment systems”, said a Franklin statement. “The transition to this new distribution structure is a focused strategy on the part of Franklin Fueling Systems to align the core competencies of our existing distributor networks with the inherent requirements of specific product brands. The new distribution structure is intended to impart logistical efficiencies to the market, foster a competitive customer service environment, and increase points of supply and availability to all custom-ers, including Major oil’s and Installation Companies.” According to the company, the

need for a resilient supply channel able to offer products that underwrite the Health, Safety and Environmental (HSE) expecta-tions associated with the UPP brand was a key driver of the decision to name a specialist distributor for the market. “Southern African Master Distributors (SAMD) is also able to offer continuing professional development training on UPP brand products to install-ers within Southern Africa”, Franklin noted.

“The addition of the well-known quality UPP brand to SAMD’s product line is another step in positioning Southern African Master Distributors as the broad-based supplier of choice for all retail forecourt equipment. We are delighted to be representing UPP in our marketing territories”, said Kevin Black, Managing Director of Southern African Master Distributors. SAMD also took over the Southern African interests of Dresser Wayne in 2004. The firm has since worked to distribute dispensers, forecourt control systems, ATG, pump maintenance, PoS and now adds pipework to its competencies.

Kss Fuels unveils survey highlighting fuel pricing trendsKSS Fuels, a leader in fuels pricing and retail location intelligence, unveiled the results of its multi-country survey into current fuel pricing practices and the steps fuel retailers are taking to cope with the continued rise in competition for market share amid static or falling demand for motor fuels. Comprising feedback from executives at retail petro-leum companies operating more than 11 000 sites in 14 countries, responses reveal a significant shift in the attitude of fuel retailers toward technology and a growing desire to understand how the combination of improved processes and predictive analytics drive bottom-line results. Survey findings show a growing trend to move away from in-house devel-oped pricing systems to commercially developed and maintained applications, with 76 percent of respondents stating they use third party pricing applications, of which 62 percent chose a KSS Fuels application. “This most recent survey indicates a significant shift in fuel retail-ers’ attitudes toward advanced analytics and decision support, highlighting that today’s market conditions and increas-ing competition are demanding a more sophisticated approach to fuels pricing”, said Bob Stein, President and CEo of KSS Fuels. “We’re seeing an increasing number of fuel retailers moving away from in-house tools and spread-sheets to adopt dedicated commercial applications that are maintained and updated by business specialists like KSS Fuels.”

tokheim achieves full complianceTokheim has announced that it is now PCI DSS certified for its online Authorisation and Switching Environment (oASE) pay-ment gateway service. This certification has been awarded subsequent to a compre-hensive audit that took place in September last year. Tokheim’s oASE, facilitates fuel and bank card payments in a fuel retail environment and it currently processes more than 300 million transactions per year. PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. This comprehensive standard is in place to proactively support organisations to protect their customer account data.

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Last August, Shell awarded a three year global wetstock contract to UK based company Fairbanks, in partnership with systems and dispenser manufacturer ToKHEIM, to deliver its services to more than 3 000 petrol stations, in 25 countries, across three continents. At the time Shell’s Wetstock Manager for North West Europe, Peter Houlton said, “Shell iden-tified a number of sites which would benefit from remote wet stock monitoring during a recent risk assessment. Fairbanks emerged as our provider of choice after a comprehen-sive tender process and comparative trial of service providers. Fairbanks offer Statistical Inventory Reconciliation Analysis (SIRA)

and Real Time monitoring to a high standard. Fairbanks’ wetstock management service will be critical to help manage our global petrol retail network using various data capture solutions and valuable reporting methods and we are looking forward to working with them over the coming years.” Baudouin de la Tour, ToKHEIM CEo, said, “We are very pleased with the success of the Fairbanks-ToKHEIM partnership in the worldwide Shell tender for wet stock monitoring”. We aim to provide a range of products and services that provide genuine return on investment to our customers around the world. In 2010 Fairbanks joined forces with ToKHEIM, a global service sta-

tions solution provider, to help expand the business internationally. It must be said that this achievement is a significant milestone in the company’s history and reward for the hard work carried out by Directors Bob Conlin and Steve Jones over the last 20 years. The hair on Steve’s head has definitely turned much whiter in that time, whilst on Bob’s there just seems to be far less of it, but Bob also seems to have become far more relaxed, or is it more accomplished in his manner and appearance during the time I have known him, a good attribute in any Managing Director. In any event, I felt, it was definitely the right time to get Mr Conlin to talk some more about Fairbanks and ask him to identify the challenges and opportunities he feels retailers will be facing over the coming years.From my perspective there are a number of company profiles which I tend to lump together and believe that the suppliers in question all roughly do the same thing. Leak detection, tank monitoring, leak prevention, fuel monitoring, tank gauging etc., but the more I probe (forgive the pun) into this whole subject, every company involved in this line of business does seem to have its own unique concept point. Fairbanks is no exception and over the next two pages you will hopefully see why. I took Bob through a simple questions and answer session to which he was happy to supply answers in typical Bob style i. e. well thought out and no stone unturned! I first asked him to explain the marketing objectives of Fairbanks and detail the ben-efits retailers can achieve by adopting their specific company offering. He replied “Fuel profit margins are being squeezed each year and the value of fuel losses is increasing. We show retailers how their business can save mon - ey on maintenance, reduced fuel losses and lower their risk, all at the same time through remote wetstock management, powered by ‘real-time data’. Improving retail petroleum business through better fuel control, is our primary marketing objective. When talking to retailers we offer to share with them a vision of their business in the future, powered by an intelligent fuel control system, giving them visibility of their product from fuel terminal to customer vehicle”. To best explain all this in a straight forward and concise manner i. e. simple, I asked Bob if he could present to me, imagining I was a retailer interested in utilising the services Fairbanks

bob Conlin, Managing Director

16

FAIrbANKs – AN INteLLIGeNt FUtUre

An intelligent future for Fairbanks by Nick Needs


has to offer. Bob was extremely pleased to conduct this undertaking and promptly moved up another three gears. He continued. “Imagine for a moment that all of the information collected by the equipment on your site was available to you with the click of a button, collating all the data across all of the sites in your network instantly. How power-ful a tool would that be? Many retailers have invested heavily into installing expensive onsite equipment such as Automatic Tank Gauges (ATG) and high-end dispensers. This type of equipment is a valuable asset to the effective running of a petrol forecourt. But in many cases retailers are failing to take full advantage of the tools, information and visibility of stock that this type of equipment makes available to them.” The answer he said is a real-time wetstock management solution which collects and col-lates this data making it available to retailers in real-time. “Having a real-time wetstock solution in place is the missing link between your site equipment and you. The data is gathered and made available in the form of intelligent management reports that can be generated online from a mobile phone or laptop, eliminating the unnecessary data tracking that usually requires visits or phone calls to numerous sites, reducing workload for area or network managers. This intelligent data reporting uses not only the fuel information but sales records also. This means that fuel purchasing decisions can be made intelligently as anticipated sales and stock holdings across sites can be viewed instantly.” Controlling fuel investmentAcross a network of sites many thousands of euros worth of fuel can be delivered in just one week, and Fairbanks state that by increasing stock visibility retailers can account for every litre that is delivered, thereby protecting their investment. Bob added “Losses don’t just hap-pen on the forecourt, delivery based losses are an increasingly common headache for retailers. When an order of 10 000 litres of product is made, this is the amount that one would expect to be dropped into the tank, but that is very rarely the case. Fuel can often travel many kilometres before it is delivered to a service station and as a result of this, transit can be heavily impacted by temperature changes. Add to that the issues with short deliveries, tanker thefts and tanker leaks and all of sudden a delivery provides retailers with a number of areas of concern. Unfortunately it is impos-sible to be present at every single delivery

across even a small network of sites, so how can retailers be sure of what they are getting delivered? An intelligent wetstock management solution would be able to identify exactly how much fuel was dropped into the tank even if sales are taking place at the same time. This means that retailers can be made aware of any discrepancies between the fuel that they ordered and the fuel actually received into the tank by making the data available online to be viewed from home or the office”. Limiting losses

An investigation to identify the source of losses on a forecourt traditionally involves extensive line and tank testing, dispenser isolation and costly maintenance call-outs, but Fairbanks confidently point to the fact that a real-time fuel management solution will identify the source of a loss in a matter of days rather than weeks. Bob explains “Data collected by a real-time wetstock management system will relay all of this information back to a data analyst. At this point the data can be examined and losses will be identified. Concurrently the data is submit-ted to an accredited statistical testing regimen run by the system, giving retailers the security of a software solution and the reassurance of human involvement and communication. By monitoring fuel movement across the site the data analyst can quickly pin point the source of the losses and then work with the retailer to achieve a positive solution. This full visibility of fuel movement on site will even identify losses that would otherwise be disguised by equipment such as Automatic Temperature Compensating (ATC) dispensers and vapour recovery systems that would impact on the amount of fuel in the tank. The above image shows the amount of losses experienced by some of our customers from when they implemented the real-time solution that we offer until today.” I asked what would happen in the unlikely case that somebody stole all the fuel from a tank, when for example the site is closed. Not duck-ing the question at all Bob answered “ Effective wetstock management can protect fuel in instances where fuel is lost very quickly, such

as a theft directly from the tank as you suggest. By having a predetermined loss threshold set for when forecourts are closed retailers can be alerted to a theft as it is happening. This detection system is in place to identify theft at any time. We actually have a recent case which demonstrates my point precisely. on Christmas day, at 1:17am, just for the record, the ibank (Fairbanks’ data collection and analysis module) installed on site detected a sudden loss of more than 200 litres on Tank 5 diesel, which triggered the Night Time Loss alert. Within 15 minutes the alert was sent to the Fairbanks offices and automatically forwarded onto the security company covering the customer’s network of service stations. This meant that the customer could react to the situation even though the incident occurred on a national bank holiday. Without having a wetstock management system in place the thieves would have long since fled the site before the loss was discovered”.

The other important area of loss prevention Bob was keen to identify was in relation to leaks. In his summary of what was an excel-lent presentation he said “ Notwithstanding potential damage to the environment, the costs of cleaning up a leak can run into the many thousands of euros putting most businesses into serious financial difficulty or even out of business altogether. A real-time wetstock system will give you the time and direction necessary to take action and recover the situ-ation, 24 hours a day 365 days a year. So no matter when a leak starts you’ll be given the tools to deal with it in a timely manner”. Bob will be representing Fairbanks at the up-coming erpec 13 event in Nice from the 16th to the 18th of April, 2013 and said he would be more than happy to offer help and advice to any retailers who have serious concerns about this whole subject or perhaps those who just need a little reassurance.

More details at www.fairbanks.co.uk

FAIrbANKs – AN INteLLIGeNt FUtUre

theft Case study


News from Russia & Cis

18 LAtest rUssIA News – www.PetroLPLAzA.CoM18

soCAr to implement major projects

Construction of a new complex processing oil, gas and petrochemicals in Azerbaijan is the largest project to be implemented in the next few years, not only for the State oil Company of Azerbaijan (SoCAR), but for the whole country. This was recently stated by head of SoCAR Rovnag Abdullayev dur-ing a meeting with the president and CEo of the American company Air Products John McGlade. According to a statement issued by SoCAR, Abdullayev spoke about projects implemented by the State oil Company in Turkey, construction of a new shipyard and the Sumgayit plant for production of nitrogen fertilisers in Azerbaijan, construction of a

new oil refinery in Turkey, expansion of the petrochemical complex Petkim’s port, as well as a power plant to be built there. “These are big challenges for SoCAR and its partners in the next five years”, Abdullayev said. The Air Products Company has more than 20 years of experience in manufacturing equipment for the production of industrial and liquefied gas for oil refining and petrochemical indus-try facilities. The company has more than 40 subsidiaries and its annual sales exceed $10 billion. SoCAR includes production association Azneft (companies producing oil and gas on land and sea) and Production Association Azerkimya (chemical industry), as well as production association Azerigas (gas distribution).The State oil Company is the only producer of oil products in the country (it has two refineries on its assets sheet) and also owns petrol stations in Azerbaijan, Georgia, Ukraine and Romania. SoCAR possesses a network of petrol stations in Switzerland and is the co-owner of the largest Turkish petrochemical complex Petkim.

rosneft and saras sign venture dealRussian oil giant Rosneft has put pen to paper on a joint venture agreement with Italy’s Saras, with the focus on developing the 300 000 barrel-a-day Sarroch facility in Sardinia. The venture, a 50/50 partnership, will see the two cooperate on crude oil processing and the sale of refined products. The deal comes as more and more European

refiners are being forced to go into business with producers from outside their regular sphere of operation. Saras’ compatriot ERG, which has already sold its stake in a Rome-based venture it engaged in with ToTAL, has indicated that it may sell its remaining 20 percent stake in the Priolo ISAB facility to LUKoIL.

tAtNeFt switches information systemThe TATNEFT group has switched its central logistics management information system to a new SAP version, the company has confirmed. The E-Store project has been integrated with logistics, finance, controlling, budgeting, pro-ject management and TATNEFT’s electronic trading platform. In addition to updating the

system, the expanded functionality of the SAP ERP 6.0 version has offered new capabilities, including a process of managing contracts for deliveries. Standard user roles have also been worked out that allow to quickly connect new employees to the system, as well as assigning new functions and powers.

rosneft’s tNK-bP purchase approvedRussia’s Federal Antimonopoly Service has approved oAo Rosneft’s (RoSN.RS) purchase of Russian oil producer TNK-BP Holding (TNBP.RS), clearing the way for the state-controlled firm to become the world’s largest listed crude producer. Igor Artemyev, the head

of the Federal Antimonopoly Service said that Rosneft will be obliged to sell off some gas stations in regions where the companies will own more than half of the total. BP will hold a 19.8 percent stake in Rosneft as part of its deal to sell out of TNK-BP.

Georgia awards tender to LUKoILGeorgia’s Government has agreed to purchase motor fuel from Russian firm LUKoIL. The supply tender includes gasoline of the Super, Premium and EuroDiesel types with a total volume of 56 million litres. Smaller supply agreements, with a volume of approximately 5 million litres, have been awarded to Rom-petrol and Wissol. Georgia’s Competition and State Procurement Agency noted that the consolidated tender was declared in Georgia for the first time and that maximum transpar-ency of the procedure and equal conditions were provided for all participants.

Gazprom wants 50 stations in romaniaThe first Gazprom fuel station on Romanian soil was opened in Sibiu, on Christmas Eve. The entire chain of local stations will be under the management of the Serbian NIS group, which is controlled by Gazprom. Romania is the second largest European market on which Gazprom fuel stations now operate. on De-cember 19 the first Gazprom fuel station was opened in Serbia. Plans for development on the retail segment under this brand include Bulgaria, Bosnia and Herzegovina. By the end of 2013 the Gazprom network of fuel stations in the Balkans is expected to have reached 100 units. “The development of Gazprom fuel stations in the Balkans is our strategic objec-tive”, stated Alexander Dyukov, Chairman of the Gazprom Neft Board of Directors. “We aim to expand in Serbia and Romania and the next step is to enter the Bulgarian market. I am confident that in the near future the network of Gazprom fuel stations will spread through the Balkans and take over leadership of the market.”

LUKoIL considers expanding to LebanonLUKoIL may become the first Russian oil company in Lebanon. LUKoIL, operating in West Africa and Romania, is interested in winning a government tender to develop offshore fields in Lebanon. LUKoIL’ competi-tion in the tender includes other international companies, U.S.-based Chevron and Exxon-Mobil, France’s ToTAL, China’s CNooC and Russia’s Gazprom.

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13

Palais De La Méditerranée Nice, France

www.erpec.com

April 16th to 18th

Spring 2013

21latest news, events, jobs online – www.PetrolPlaza.comlatest news, events, jobs online – www.PetrolPlaza.com LAtest ALterNAtIve FUeL News – www.PetroLPLAzA.CoM 21

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aLTERNaTiVEfUeL News

ohio powers up electric vehicle charging stations

Dublin, ohio has taken upon itself meeting the recharging needs of environmentally con-scious drivers. The city has installed electric vehicle charging stations to meet what it calls a growing interest in alternative fuel vehicles. The $ 28 400 units are free of charge to the

public. Half the cost of the project is shared by Columbus-based Clean Fuels ohio, a state-wide non-profit organization that promotes the use of clean fuels and energy-efficient vehicles. The city’s first publicly owned charging station is part of its overall push for clean energy.

world’s largest companies embrace clean energyA majority of the world’s largest companies are not waiting for governments to mandate renewable energy and lower greenhouse gas emissions, they are taking it upon themselves to act first. A new report from investment and conservation organizations shows that more than half of the Fortune 100 and more than two-thirds of the Global 100 have set carbon emissions reduction com-mitments, renewable energy commitments or both. “The global transition to a lower carbon economy is accelerating due to ris-ing public concern about climate change”, states the report. AT&T, DuPont, General Motors, Google, HP, Sprint and Walmart are among the corporations that have set their own renewable energy and greenhouse gas goals. Despite glacial progress on climate and energy policy in the U.S. Congress and at the United Nations climate change talks that concluded in Qatar 9th December, the report from Calvert Investments, Ceres and World Wildlife Fund shows that clean energy practices are becoming standard for some of the largest and most profitable companies in the world. The report, “Power Forward: Why the World’s Largest Companies are Investing in Renewable Energy”, shows that a majority of Fortune 100 companies have set a renewable energy commitment, a greenhouse gas emissions reduction com-mitment or both. The trend is even stronger internationally, as more than two-thirds of Fortune’s Global 100 have set the same com-mitments. The report was prepared by David Gardiner & Associates with the guidance of WWF, Ceres and Calvert staff. It was sourced from analysis of corporate public disclosures as well as two dozen interviews with Fortune and Global 100 executives.“When a majority of the world ’s largest companies are investing in clean energy, you

can truly see its value”, said Mindy Lubber, President of Ceres, a coalition of investors, companies and public interest groups. Ceres also directs the Investor Network on Climate Risk, 100 institutional investors with assets totaling more than $ 10 trillion. “It speaks volumes that almost all of these companies set their renewable energy and greenhouse gas goals after the economic downturn, pre-cisely because they understand the economic benefits of efficiency and renewable energy”, said Lubber. “We encourage lawmakers to support policies that help companies meet and strengthen their clean energy goals.”The report shows that 96 companies from the combined 173 companies in the Fortune 100 and Global 100 have set greenhouse gas reduction goals – 56 percent. of those, 23 companies have set specific goals for renewable energy use, with others using renewable energy to meet their greenhouse gas goals. Many companies are shifting from purchasing short-term, temporary Renewable Energy Credits to longer-term investment strategies like Power Purchase Agreements and on-site projects, indicating a long-term commitment to renewable energy and reap-ing the benefits of reduced price volatility, according to the report. “The companies that are boldly setting either greenhouse gas or renewable energy goals and making progress on those commitments are demonstrating the business case and real leadership on climate change”, said Marty Spitzer, Direc-tor of U.S. Climate Policy with WWF, the global conservation organization. “And, in the process”, said Spitzer, “these companies are changing the game – driving significant renewable energy investment globally and pressing for the right policy and market conditions that will allow companies to do even more.”

Neste oil joins avia-tion bio-fuel initiativeFinnish renewable fuel developer Neste oil will join hands with the European Union (EU)-backed ‘Initiative Towards Sustainable Kerosene for Aviation’ (ITAKA) project to promote the use of sustainable bio-fuels in aviation. A consortium of companies are currently taking part in the 36-month ITAKA project, funded through an EU grant of 10 million under the EU Seventh Framework Programme for Research and Development (2007–2013). Neste oil will produce 4 000 tons of NExBTL renewable aviation fuel, produced from Spanish camelina oil and used cooking oil, for the project.

H2 mobility initiative in GermanyBuilding up a refuelling station network for fuel cell electric vehicles is taking on a con-crete form. The current partners in the H2 Mobility initiative (Air Liquide, Daimler, Linde, oMV, Shell and ToTAL) are working on implementing a business model to build up a nation-wide hydrogen refuelling station network in Germany. The objective of this initiative is to prepare for the planned series launch of fuel cell electric vehicles and build up a hydrogen station network infrastructure. As well as the six partners, seven associated partners from the automotive industry (BMW, Honda, Hyundai, Intelligent Energy, Nissan, Toyota and Volkswagen) as well as the National organization of Hydrogen and Fuel Cell Technology (NoW) as interface to Germany’s federal government are also involved.

tesla adds to ev supercharger networkTesla has expanded its network of super charg - ers to the East Coast of the US. The Tesla Model S charging stations, which can add 150 miles of range to a car in only 30 minutes, have been established Milford, Connecticut and Newark, Delaware. Tesla’s original network of six charging stations stretched from Los Angeles to northern California. The company plans to have 100 new Superchargers across North America by 2015.


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22 LAtest UsA News – www.PetroLPLAzA.CoM22

New fuel distribution insurance programNational Interstate Insurance Company is planning to offer a new fuel distribution insur-ance program, in an effort to strengthen its long-standing captive fuel distribution busi-ness. Effective since January, the new program involves residential propane and fuel dealers

with a commitment to safety and strong risk man agement practises. Coverage options in - clude auto liability, general liability, auto physi-cal damage, workers’ compensation, as well as property and excess umbrella, with crime and inland marine coverage upon request.

AtM legislation becomes lawPresident obama has signed into law NACS-supported legislation that eliminates a regulat-ory provision – one that has become the source of frivolous lawsuits aimed at operators of ATMs. Regulations required ATM opera - tors to post both a notice of a transaction fee on or near the ATM and provide an on-screen notice of the fee during the transaction. Under the Electronic Fund Transfer Act, a consumer who uses an ATM which does not have a notice of a transaction fee posted and is charged a fee, can bring an action against

the ATM operator and recover statutory damages between US $ 100 and US $ 1 000 for each transaction – regardless of whether the consumer suffered any actual injury. Representative Blaine Luetkmeyer (R-Mo) introduced legislation to eliminate this redun-dant requirement when he learned that one individual in Missouri had successfully filed suit against five ATM operators and secured more than US $ 100 000 in settlements. He referred to the legislation as a “commonsense fix” to crack down on nuisance lawsuits.

Kwik trip expands CNG station network in UsALa Crosse-based Kwik Trip has began selling compressed natural gas at its fueling station in Minnesota City, USA. Kwik Trip now has nine stations across Wisconsin, Iowa and Minnesota that sell compressed natural gas and it intends to open many more, said Joel Hirschboeck, the company’s superintendent

of alternative fuel. CNG emissions are about 90 percent lower than diesel, making the fuel especially attractive to businesses that have truck fleets. The national trade organization NGVAmerica estimates CNG fuel consump-tion has grown by about 15 percent a year since 2006.

source™ upgrade their dispensing applications Source™ North America Corporation, a major fuelling equipment distributor in North America, is now assembling curb pump dispensing hoses as per the requirements of the UL 330 application process that took effect on 1st January 2013 which specify the use of approved flammable liquid hose assemblies, consisting of flexible hose and

fittings suitable for attachment to flammable liquid dispensing equipment. Curb pump hoses have been specifically designed for conventional dispensing applications that require a hard-wall construction for full flow and no internal spring guards, making them ideal for use with gasoline, diesel, ethanol up to E15 and biodiesel up to B20.

Jones & Frank acquires reliable oil equipmentJones & Frank has acquired the assets of Reli-able oil Equipment, a distributor and service provider headquartered in ohio. The combined organisation will have 22 branch offices, three distribution centres and personnel in 20 states. After completion of the merger, Jones & Frank will employ over 175 certified technicians strategi-cally located to deliver a wide array of equipment and services. “We are very excited about this

acquisition and the depth that the strong team at Reliable adds to our business. The blending of key resources from both organizations will translate into increased efficiencies to better serve our customer”, said Jones & Frank CEo Sterling Baker. “The acquisition also adds to our capacity and geographic presence to better service the single store operator or the national retailer with multiple locations.”

Couche-tard acquires 29 storesAll stores offer motor fuel branded Phillips 66. They would eventually be rebranded under the Circle K brand and continue to offer motor fuel under Phillips 66. Couche-Tard’s Midwest division would operate 28 of them, the other operated by the Southwest division. Pursuant to this transaction, Couche-Tard would buy the land and buildings for 25 locations and would assume or enter into leases for the remaining locations.

Murphy oil expands through wal-Mart

Murphy oil Corp has announced that its wholly-owned subsidiary, Murphy oil USA, Inc., has entered into an agreement with Wal-Mart Stores, Inc. to provide access to over 200 new fuel service stations within its core market area covering the Midwest and Southeast United States. Under the terms of the agreement, Murphy USA will have the opportunity to build over 200 new fuel service stations at existing Walmart supercentres. The construction program is expected to be completed over the next three years.

7-Eleven acquires 143 sites7-Eleven has made a significant acquisi-tion of 143 sites in south Texas. from C. L. Thomas. The, transaction adds to a previous acquisition of 25 convenience stores in the state from Tetco and includes fuel distribu-tion to approximately 150 dealer-operated fuel service stations. The retail sites are branded as Speedy Stop and Tigermarket. &-Eleven plans to interview and offer posi-tions to qualified employees in the stores and rebrand a significant number of loca-tions during 2013.


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