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Tanzania Oil companies want fuel testing Galp wants ... - ErpecNews

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an international retail petroleum news digest<br />

www.erpecnews.com<br />

<strong>Tanzania</strong> <strong>Oil</strong> <strong>companies</strong> <strong>want</strong> <strong>fuel</strong> <strong>testing</strong><br />

A number of oil <strong>companies</strong> operating in<br />

Zambia, including Gapco, Engen and Mogas,<br />

have sent oil samples for international <strong>testing</strong>.<br />

The <strong>companies</strong> have revealed their belief that<br />

petrol supplied by Swiss-based Augusta Energy<br />

between January and March was contaminated.<br />

Three separate samples of petrol have been sent<br />

to the chief government chemist for laboratory<br />

<strong>testing</strong> following complaints by the <strong>Tanzania</strong><br />

Association of <strong>Oil</strong> Marketing Companies. The<br />

<strong>companies</strong> involved claim the oil was blended<br />

with ethanol and has damaged equipment,<br />

leading to financial losses. Augusta Energy<br />

denied accusations of contamination stating<br />

that they only supply <strong>fuel</strong> which has been<br />

tested by responsible agencies.<br />

<strong>Galp</strong> <strong>want</strong>s retailer with 5 million euros<br />

<strong>Galp</strong> Energia is looking for a franchisee or<br />

retailer who will manage and operate two of<br />

its service stations in its Swaziland network.<br />

<strong>Galp</strong>, which is one of the most recognised<br />

filling station brands in Swaziland, is looking<br />

for someone with an unencumbered cash of<br />

5 million euros which will cover the right to<br />

trade and the first consignment of <strong>fuel</strong> stock to<br />

the required <strong>Galp</strong> outlets.Commercial Director<br />

Fannie Mthethwa was quoted in a statement<br />

saying that the successful candidate must be<br />

ready to commence operations 1st May. <strong>Galp</strong><br />

Energia has invested about 210 million euros<br />

in its three-year operation in Swaziland. The<br />

company’s investment includes re-branding,<br />

opening new filling stations, constructing of<br />

a LPG depot and funding different charities.<br />

Trafigura to invest $ 250 million in Nagarjuna<br />

International commodity trader Trafigura<br />

is to invest $ 250 million in Nagarjuna <strong>Oil</strong><br />

Corporation, with $130 million going into<br />

developing a new refinery storage facility in<br />

eastern India. Nagarjuna will also partner<br />

the state government of Tamil Nadu and Tata<br />

Petrodyne Ltd on the project. Work on the<br />

121 000 barrel per day refinery will begin later<br />

this year, with operations expected to begin<br />

in the first half of 2013. Located on the coast,<br />

the new refinery will be able to accommodate<br />

super tankers, which are typically able to carry<br />

up to 2 million barrels of oil each. At present,<br />

Trafigura holds storage facilities capable of<br />

holding more than 45 million barrels of oil<br />

and has been building its capacity steadily.<br />

Issue No 17 | April 2012<br />

AsiA, Middle eAst & AfricA edition<br />

Book early for erpec 13<br />

The ‘early bird’ booking facility for next<br />

year’s erpec event in Nice is now operational<br />

and on-line. Available places will again be<br />

restricted to 85 suppliers. The last event in<br />

Barcelona was oversubscribed to a reasonable<br />

level, with supplier registrations closed two<br />

months prior to the event, so to guarentee<br />

your participation, please do not wait too<br />

long before you register. The deadline for<br />

an ‘early bird’ discount is July 30th.<br />

The venue for 2013 is the prestigious Hotel<br />

Palais de la Méditerranée on the famous<br />

Nice promenade in Southern France. The<br />

location is centrally located within Europe<br />

and a popular destination for delegates,<br />

particulary those from the East European<br />

countries, who continue to be a primary<br />

focus for erpec. The airport, utilising two<br />

new terminals, is very well served by international<br />

flights and is only five minutes away<br />

from the Palais de la Méditerranée hotel.<br />

Delegates from oil <strong>companies</strong> and major<br />

retailers wishing to attend should contact<br />

Nick Needs at nick@mcleanevents.com<br />

Suppliers <strong>want</strong>ing to register should visit<br />

www.erpec.com<br />

erpecnews is published by McLean Communications Ltd. in conjunction with PetrolPlaza – www.erpecnews.com


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McLean<br />

Communications Ltd.<br />

PeF begins electronic tracking of <strong>fuel</strong> tankers<br />

As part of the measures to check diversion<br />

of <strong>fuel</strong> tankers and fraudulent claims in the<br />

disbursement of bridging funds to transporters,<br />

Nigerias Petroleum Equalisation Fund<br />

(PEF) has commenced electronic tracking<br />

of the loading and movement of <strong>fuel</strong> tankers<br />

across the country. This development comes<br />

after the electronic tracking solution named<br />

“Project Aquila” was subject to a nine-month<br />

LATesT News, eveNTs, jOBs ONLINe – www.PeTrOLPLAzA.COM<br />

pilot <strong>testing</strong>, which commenced on 1st July<br />

2011. The Petroleum Equalisation Fund<br />

(Management) Board was established by the<br />

PEFMB Act to equalise the cost of transporting<br />

petroleum products from depots to filling<br />

stations in order to ensure uniform price of<br />

<strong>fuel</strong> in all parts of the country. The agency<br />

derives its fund from the net surplus revenue<br />

recovered from marketers.<br />

sinopec to cut deliveries to private <strong>fuel</strong> stations<br />

State-owned China Petroleum and Chemical<br />

Corporation (Sinopec Corp) is halting <strong>fuel</strong><br />

sales to private gas stations in some parts of<br />

the country. By cutting deliveries to privately<br />

owned gas stations, their competitors in the<br />

downstream market, Sinopec aims to meet<br />

the expanding demands of its own growing<br />

network, while at the same time pushing<br />

up its sales revenues in a move to offset<br />

losses from its refining business. The oil<br />

giant has been curtailing its <strong>fuel</strong> wholesale<br />

operations for the past year, a crude oil<br />

analyst for Shanghai Cifco Futures said.<br />

Last year, Sinopec reduced the wholesale<br />

deliveries of <strong>fuel</strong> to privately held stations by<br />

13.53 percent, while revenues from its own<br />

gas stations grew by 14.39 percent during<br />

the same period.<br />

Chevron Malaysia to expand its <strong>fuel</strong> retail network<br />

Chevron Malaysia Ltd, the operator of Caltex<br />

petrol stations, is looking to further expand<br />

its network in the country by establishing<br />

100 new service stations in the Peninsular<br />

of Malaysia by 2015, Country Manager Jeremy<br />

Oh has said. The new stations will be<br />

100 percent owned and operated by franchised<br />

retailers, in line with Chevron’s aspiration<br />

Acquisition of Malaysian oil refiner<br />

An affiliate of San Miguel Corp. has completed<br />

the acquisition of ExxonMobil Malaysia’s<br />

65 percent stake in the Malaysian oil refiner<br />

Esso for $ 577.3 million. In a disclosure to<br />

the stock exchange, San Miguel said its affiliate<br />

Petron <strong>Oil</strong> & Gas International Sdn.<br />

(POGI) has acquired 65 percent of Esso<br />

Malaysia Berhad and its other downstream<br />

oil subsidiaries in Malaysia – ExxonMobil<br />

Malaysia SdnBhd and ExxonMobil Borneo<br />

POGI also informed it would implement an<br />

to allow greater business participation and<br />

dedication by retailers. “Currently, we have<br />

422 petrol stations and out of the total, some<br />

60 percent are owned by retailers and the rest<br />

by Chevron. We expect by 2015, 100 more<br />

service stations will be opened and out of the<br />

then total, 90 percent would be owned and<br />

operated by retailers”, said Oh.<br />

unconditional mandatory take-over offer by<br />

POGI to acquire the remaining 35 percent<br />

of Esso Malaysia shares at 3.59 malaysian<br />

ringgit each. San Miguel has diversified its<br />

portfolio in recent years, spinning off its<br />

traditional brewing business and moving<br />

into areas such as domestic power, telecommunications,<br />

infrastructure and energy. The<br />

company owns the Philippines’ largest oil<br />

refiner, Petron Corp with a network of over<br />

1 700 service stations nationwide.<br />

IOC completes first phase of automation<br />

State-owned Indian <strong>Oil</strong> Corporation (IOC)<br />

has completed the first phase of automation<br />

of its petrol pumps across the country and<br />

is “progressing very fast” in this regard, according<br />

to a top company official. Last year,<br />

IOC embarked on a plan to automate all its<br />

petrol stations. In the first phase the oil major<br />

identified about 1 600 petrol stations. “That is<br />

progressing very fast, we have already upgraded<br />

2 000 petrol pumps under this program”, IOC<br />

Chairman and Managing Director R S Butola<br />

said. “All petrol outlets selling more than<br />

200 kilolitres per month have been covered<br />

in the first phase. In the second phase, all<br />

pumps retailing about 100 kilolitres will be<br />

put under automation”, Butola said. IOC has<br />

about 19 000 <strong>fuel</strong> stations across the country<br />

set for automation.


should India regulate petrol prices again?<br />

In order to help the <strong>Oil</strong> Marketing Companies<br />

(OMCs) erase some of their losses,<br />

the Indian government deregulated petrol<br />

prices in June 2010. However the government<br />

still compensates the OMCs for selling<br />

diesel, kerosene and liquefied petroleum<br />

gas at government-fixed prices. In-spite of<br />

deregulation, OMCs like <strong>Oil</strong> India, HPCL<br />

and BPCL still have to get the government’s<br />

approval to raise petrol prices. As a result<br />

Petron acquires esso Malaysia<br />

Petron <strong>Oil</strong> & Gas International Sdn Bhd<br />

(Petron International), an offshore affiliate<br />

of oil refiner Petron Corp., has offered to buy<br />

an additional 35 percent of Esso Malaysia<br />

Berhad for 3.50 malaysian ringgit a share.<br />

Petron International under a “mandatory<br />

takeover” offered to purchase 94.5 million<br />

shares held by other stockholders of Esso<br />

Malaysia. “The mandatory takeover offer was<br />

due to elections the OMCs have been unable<br />

to raise petrol prices for the past 4 months.<br />

OMCs last raised petrol prices in December<br />

2011. Price of Brent crude has increased by<br />

11.06 percent since 1st January, 2012 which<br />

has resulted in significant losses for the<br />

OMCs. According to the oil ministry, OMCs<br />

are losing around 4.86 billion rupee a day<br />

on account of selling petroleum products at<br />

government-mandated prices.<br />

triggered by Petron International’s acquisition<br />

of 175 500 000 Esso Malaysia Berhad (EMB)<br />

shares, representing 65 percent of the voting<br />

shares of EMB”, Petron said in a disclosure<br />

to the Philippine Stock Exchange. Petron<br />

said the tender offer marked its entry “into<br />

the highly-attractive and dynamic Malaysian<br />

market and is a strategic opportunity for the<br />

company to increase its presence in Asia”.<br />

Leading downstream company by 2016<br />

ENGEN Ghana limited is targeting to become<br />

the leading downstream company in the sub-<br />

Saharan region by 2016. ENGEN is focusing<br />

on the downstream refined petroleum products<br />

market and related businesses. The company’s<br />

core functions are the refining of crude oil, the<br />

marketing of refined petroleum products and<br />

the provision of convenience services via an<br />

extensive retail network. ENGEN has pres-<br />

ence in 18 countries in sub-Saharan Africa.<br />

Managing Director, Engen Ghana, Henry<br />

Akoboah said “The vision of the company is to<br />

become the number one downstream company<br />

in sub-Saharan Africa. This means that we<br />

are going to increase our market share and<br />

our presence. That is the reason why we also<br />

acquired Chevron’s assets in seven countries<br />

to expand our operations in the sub-region”.<br />

south Korea expands ‘bargain’ gas stations<br />

South Korea plans to open more “bargain” gas<br />

stations throughout the country to help control<br />

inflationary pressure and lighten living costs<br />

for ordinary citizens. At an economic policymakers<br />

meeting aimed at stabilizing consumer<br />

prices, the finance ministry said up to 433<br />

bargain gas station will be set up increasing<br />

from 385 the number currently in operation.<br />

The bargain gas stations sell <strong>fuel</strong> products<br />

at lower prices than their conventional rivals.<br />

These stations can undercut rivals because<br />

they receive their <strong>fuel</strong> directly from state-run<br />

agencies at cheaper prices. The government<br />

said the presence of such stations helps lower<br />

gasoline and diesel <strong>fuel</strong> prices across the board<br />

through open market competition.<br />

zambia shortlists 14 <strong>fuel</strong> supply <strong>companies</strong><br />

Fourteen foreign firms among them Dalbit<br />

Petroleum and Kuwait’s Independent Petroleum<br />

Group (IPG) have been shortlisted for the<br />

two-year supply of diesel and unleaded petrol<br />

to Zambia. And nine foreign firms have been<br />

shortlisted for the supply of 1.4 million tonnes<br />

of petroleum feedstock to Indeni Petroleum<br />

Refinery over two years. The country is currently<br />

looking for firms to supply diesel and<br />

unleaded petrol side by side with the firm to<br />

supply 1.4 million tonnes of petroleum feedstock<br />

over two years. The tender constitutes<br />

for supply of finished petroleum comprising<br />

15 to 20 percent of the diesel and petrol that<br />

the country consumes. Sources said prominent<br />

bidders included Dalbit Petroleum of Kenya,<br />

Agipol Africa, Addax Oryxl, Trafigula, IPG<br />

and Kenol Kobil.<br />

sanctions boost business for Iranian tanker company<br />

Iranian oil stored at sea is building up due to sanc -<br />

tions which are proving a boon to its tanker oper-<br />

ator. Half of the large crude carriers owned by<br />

NITC are now storing oil instead of exporting it.<br />

latest news, events, jobs online – www.PetrolPlaza.com<br />

News – MIddLe eAsT, AFrICA & AsIA<br />

Local <strong>fuel</strong> retailers interested<br />

in Caltex assets<br />

Local players are flexing their muscles to<br />

acquire downstream assets of Chevron Corp.<br />

as the American oil marketing company<br />

(OMC) is considering disinvesting from Egypt,<br />

Pakistan and Australia, industry officials<br />

and analysts said. Chevron (Caltex brand)<br />

has recently announced it <strong>want</strong>s to sell off<br />

its downstream assets consisting of refining,<br />

marketing and retail sales outlets. Chevron<br />

(Caltex) has an extensive presence in Pakistan<br />

with a nationwide retail network consisting<br />

of 538 <strong>fuel</strong> outlets. Industry officials say Attock<br />

Petroleum (APL) and Byco appear to be<br />

the key contenders among existing players.<br />

Fauji Faoundation’s Fauji Fertilisers (FFC)<br />

is also considering acquiring Caltex operations<br />

in Pakistan as the company is actively<br />

pursuing its business diversification plan and<br />

has already ventured in the energy sector.<br />

essar <strong>Oil</strong> to produce<br />

euro-v grade diesel<br />

Essar <strong>Oil</strong> Ltd has commissioned a unit that<br />

will produce Euro-V grade diesel at its Vadinar<br />

refinery in Gujarat. The 4 million tons a year<br />

Diesel Hydrotreater Unit-I (DHDT-I) will<br />

upgrade diesel quality by treating the sour<br />

diesel streams, achieving reduction in sulphur<br />

as well as an improvement in the cetane index.<br />

The project will enhance the refinery’s<br />

capacity to 18 million tons per annum from<br />

current 14 million. The new unit will ensure<br />

that the diesel produced will be capable of<br />

meeting Euro V specifications. Essar <strong>Oil</strong><br />

has already commissioned the Isomerisation<br />

Unit, which was the first expansion unit to<br />

be commissioned, that gives the refinery the<br />

capability to produce gasoline of high octane<br />

rating and almost zero sulphur content.<br />

Nigeria imports of 4.8<br />

billion litres of <strong>fuel</strong><br />

The Petroleum Products Pricing Regulatory<br />

Agency (PPPRA) has issued 42 petroleum<br />

product marketers, permits to import a<br />

total of 4.8 billion litres of petrol in the<br />

second quarter this year. This will be the<br />

first open tender announcement since the<br />

partial removal of subsidy in January. Experts<br />

estimate that the country consumes<br />

between 20 and 25 million litres of petrol<br />

every day. Before the issuance of these<br />

permits, the country relied on exchanges<br />

of crude oil for petrol and other products.<br />

<strong>Oil</strong> majors like ExxonMobil and TOTAL<br />

as well as state-owned Nigerian National<br />

Petroleum Corporation (NNPC) are among<br />

the <strong>companies</strong> approved to sell petrol in the<br />

country, the PPPRA said in a statement.<br />

3


News – eUrOPe<br />

4 LATesT News, eveNTs, jOBs ONLINe – www.PeTrOLPLAzA.COM


China <strong>want</strong>s oil company rights protected<br />

China urged Sudan and South Sudan to<br />

protect the rights and interests of Chinese<br />

oil <strong>companies</strong> that have established projects<br />

in the two countries. “Their legitimate rights<br />

and interests deserve substantial protection”,<br />

Foreign Ministry Spokesman Liu Weimin<br />

has said. Liu said the oil industry is an<br />

economic lifeline for both Sudan and South<br />

Sudan, calling on the two nations to remain<br />

rational and appropriately resolve oil disputes<br />

through negotiation. “China will work with<br />

the international community to make efforts<br />

to promote this process”, Liu said, also saying<br />

China hopes both sides will remain “calm and<br />

restrained”, respect each other’s sovereignty,<br />

increase mutual trust, actively cooperate<br />

with international mediation endeavours and<br />

resume negotiations at an early date.<br />

Libyan interests in east Africa shrink<br />

Libyan interests in East Africa continue to<br />

shrink as it emerges that Kenya is pressing<br />

for complete disengagement with Tamoil East<br />

Africa Ltd. This is so that they may review<br />

progress on the proposed Eldoret-Kampala<br />

pipeline. Energy officials in Nairobi have<br />

said that Kenya <strong>want</strong>s the multi-million dollar<br />

deal terminated and the project floated<br />

afresh to attract new partners. Recently<br />

Libya launched a major diplomatic offensive<br />

hoping to persuade authorities in Nairobi<br />

to revive the deal claiming that Tamoil had<br />

already spent $15 million. Now doubts have<br />

emerged as to whether Tamoil still has the<br />

ability to undertake such a critical project<br />

especially after the Uganda government<br />

demanded that the scope of the project be<br />

altered to cater for an additional line to<br />

pump future refined Ugandan oil to export<br />

markets through Kenya.<br />

Nigerian government fund maintenance of refinery<br />

In an attempt to reduce reliance on imported<br />

petroleum products, the Nigerian Federal<br />

Government has provided 94.2 billion naira<br />

(US $ 600 million) for the Turn Around<br />

Maintenance (TAM) of Warri Refining and<br />

Petrochemicals Company (WRPC). Director<br />

of WRPC Samuel Babatunde announced the<br />

TAM, which will take between 2 to 3 years, to<br />

the Senate Committee on Petroleum Resource<br />

(Downstream). Babatunde said the TAM will<br />

be vital due to the current condition of Nigeria’s<br />

pipelines. “We are victims of continuous<br />

pipeline vandals and disruptions, it is a battle<br />

to keep our plants running at even 25 percent.<br />

The refineries are in a terrible state of disrepair<br />

but works are in progress.”<br />

shell wait for government policy change<br />

Shell India has said that it will continue to<br />

operate its <strong>fuel</strong> retail stores as normal and that<br />

it is going to wait for government policy changes<br />

before expanding its operations. Shell operates<br />

between 70 and 80 <strong>fuel</strong> service stations in<br />

the country. “We are operating retail outlets<br />

and we have not shut them. We will continue<br />

operating these outlets and may not expand<br />

unless some policy changes are made”, said<br />

Chairman Vikram Singh Mehta. “My hope<br />

is that the government will allow <strong>companies</strong><br />

to raise prices. This is important because<br />

<strong>companies</strong> need to invest for expansion. Unless<br />

they do that we are going to face a crisis.”<br />

Despite the abolition of direct price controls<br />

in mid-2010, <strong>companies</strong> that wish to deviate<br />

from set crude prices need the government’s<br />

approval to do so.<br />

latest news, events, jobs online – www.PetrolPlaza.com<br />

News – MIddLe eAsT, AFrICA & AsIA<br />

PsO win major contract<br />

for <strong>fuel</strong> farm<br />

Pakistan State <strong>Oil</strong> (PSO) have announced<br />

that they have been awarded the contract<br />

for the establishment of a <strong>fuel</strong> farm, maintenance<br />

of hydrant re<strong>fuel</strong>ling system and<br />

re<strong>fuel</strong>ling operations at the New Benazir<br />

Bhutto International Airport (Islamabad).<br />

The contract was awarded after a transparent,<br />

competitive and open bidding process<br />

that took place at the Infrastructure Project<br />

Development Facility (IPDF) headquarters<br />

in Islamabad. The entire procedure was<br />

carried out under the supervision of Civil<br />

Aviation Authority (CAA) representatives<br />

and was conducted between the three prequalified<br />

parties namely Shell Pakistan,<br />

Attock Petroleum and Pakistan State <strong>Oil</strong>.<br />

The IPDF had defined the criteria for the<br />

successful bidder as being pre-qualified in<br />

the initial stage and submitting the highest<br />

proposal amongst all bidding parties. In the<br />

process, PSO was declared as the highest<br />

bidder for the project.<br />

Nagarjuna <strong>Oil</strong> in<br />

pact with IOC<br />

India’s Nagarjuna <strong>Oil</strong> Corp (NOCL) has<br />

signed a <strong>fuel</strong> sales deal with the country’s<br />

biggest refiner Indian <strong>Oil</strong> Corp, a move that<br />

is hoped will reduce import dependence.<br />

India has surplus refining capacity but<br />

its private refiners prefer to export or sell<br />

in local markets through state-run firms,<br />

which only get compensation from the<br />

government for sale of <strong>fuel</strong> at subsidised<br />

rates. The agreement would help cut the<br />

current deficit of about 3 million tonnes for<br />

supplies of gasoline, diesel and liquefied<br />

petroleum gas (LPG) in the state, NOCL<br />

said in a statement. “The NOCL Refinery<br />

is designed to produce around 2.7 million<br />

tons of Diesel, 0.8 million tons of Petrol<br />

and 0.7 million tons of LPG, which would<br />

be sufficient to bridge this deficit”, it said.<br />

5


News – MIddLe eAsT, AFrICA & AsIA<br />

6<br />

Public oil <strong>companies</strong><br />

receive compensation<br />

Several public oil <strong>companies</strong> in India will<br />

receive compensation of 15 000 rupee<br />

from the government for having to sell<br />

<strong>fuel</strong> below market prices in the last fiscal<br />

quarter. Indian <strong>Oil</strong> Corporation, Bharat<br />

Petroleum Corporation and Hindustan<br />

Petroleum Corporation are obliged to sell<br />

domestic LPG, diesel and kerosene at a<br />

controlled price based on a government<br />

subsidy programme. Over the course of<br />

this year the three <strong>companies</strong> are estimated<br />

to lose 1.38 rupee lakh because of the<br />

subsidy, although the government has said<br />

that more compensation will be paid out<br />

over the course of 2012 – 2013 and that a<br />

budgetary provision has been made. The<br />

government has given no indication that<br />

the private sector-only subsidy will be<br />

removed, despite public <strong>companies</strong> like<br />

<strong>Oil</strong> India and ONGC having to shoulder<br />

some of the burden.<br />

Korean government<br />

<strong>want</strong>s more discount<br />

<strong>fuel</strong> stations<br />

The Korean government is stepping up<br />

its push for discount <strong>fuel</strong> stations to help<br />

lighten household utility bills despite continuing<br />

scepticism over its efficacy and state<br />

intervention in petrol prices. State-backed<br />

self-service stations are a showpiece of the<br />

government’s battle against skyrocketing<br />

oil costs and a supply oligopoly by major<br />

refiners. It aims to set up some 1 300 outlets<br />

by 2015, of which about 430 are in operation<br />

now. However, a growing number of<br />

Koreans are casting doubt on the ambitious<br />

campaign’s effectiveness, calling instead<br />

for a <strong>fuel</strong> tax break.<br />

Guyana takes a firm<br />

stand on health & safety<br />

As part of efforts to ensure that consumers<br />

receive value for their money and at the<br />

same time protect their health and safety,<br />

the Guyana National Bureau of Standards<br />

(GNBS) announced that it will continue<br />

its surveillance at <strong>fuel</strong> stations. This<br />

was disclosed by the head of the Legal<br />

Metrology and Standards Compliance<br />

Department, Shailendra Rai who also<br />

reported on an update on the bureau’s<br />

weights and measures activities for the<br />

first quarter of this year. He said that a<br />

total of 771 petrol pumps, 66 bulk metres,<br />

25 storage tanks and 54 wagon compartments<br />

were verified of which 197 petrol<br />

pumps were calibrated.<br />

CNPC pursue venezuelan joint venture<br />

The Chinese State Council has granted China<br />

National Petroleum Corporation approval<br />

to pursue a joint venture with Venezuela’s<br />

Petroleos deVenezuela. The venture will see<br />

CNPC and PDVSA work together on building<br />

a $ 9.29 billion refinery in Guandong<br />

Province, capable of processing 20 million<br />

tonnes of crude oil annually. CNPC will hold<br />

a 60 percent stake in the new refinery, with<br />

PDVSA controlling the remaining 40 percent.<br />

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The refinery, which the <strong>companies</strong> hope will<br />

eventually produce 50 billion tonnes per year,<br />

will allow CNPC to increase its presence in<br />

the south of the country. CNPC and China<br />

Petrochemical Corp, or Sinopec, together<br />

control 80 percent of the country’s oil industry.<br />

The Chinese government is in the process of<br />

implementing an ambitious five-year plan that<br />

it hopes will lead to the country being capable<br />

of refining 650 million tonnes of oil per year.<br />

samsung Total plan budget <strong>fuel</strong> stations<br />

Samsung Total Petrochemicals Co. is set to<br />

break into the tightly controlled retail petrol<br />

market as part of the government’s across-theboard<br />

drive to rein in skyrocketing gas prices<br />

and revamp Korea’s <strong>fuel</strong> supply structure. A<br />

pan-governmental task force headed by the<br />

Ministry of Knowledge Economy unveiled the<br />

proposal, which also envisages an upsurge in<br />

electronic transactions and tax cuts and other<br />

incentives for new operators of “discount”<br />

Taiwan <strong>fuel</strong> price subsidy ends<br />

The Taiwanese government has announced<br />

the end of <strong>fuel</strong> subsidies pushing up prices by<br />

around 10 percent and drawing condemnation<br />

from opposition parties. “This is a difficult<br />

decision, but we have to do this”, said Economic<br />

Affairs Minister Shih Yen-shiang. “As<br />

a minister, I have to take into consideration<br />

the country’s long-term development, which<br />

has been threatened by the subsidies.” Main<br />

<strong>fuel</strong> stations. The package is the latest in a<br />

string of the government’s measures to boost<br />

competition and pricing transparency in the<br />

local retail <strong>fuel</strong> industry as sky-high pump<br />

prices squeeze budgets of low-income earners<br />

and everyday drivers. The announcement<br />

comes less than a week after President Lee<br />

Myung-bak ordered ministers at a meeting to<br />

look into “if constantly creeping <strong>fuel</strong> prices<br />

stem from an oligopolistic distribution system”.<br />

opposition group the Democratic Progressive<br />

Party demanded the government overhaul the<br />

state-run CPC Corp. Taiwan, the island’s main<br />

oil supplier, rather than hike prices. Minister<br />

Shih said that since the subsidy was introduced<br />

in late 2010, CPC Corp., which controls some<br />

75 percent of the island’s petroleum market,<br />

had generated a loss of 48.6 taiwan dollar<br />

billion ($ 1.64 billion).<br />

TOTAL Philippines plans expansion of network<br />

Fuel retailer TOTAL (Philippines), Inc. will open<br />

20 new stations this year as part of its growth<br />

program. The company currently has 174 retail<br />

stations nationwide with majority of the stations<br />

located in Luzon. The estimated cost for one<br />

station is 30 million peso, according to earlier<br />

reports, an investment which partly goes into<br />

meeting safety standards. The company <strong>want</strong>s to<br />

grow its market share in the country particularly<br />

in areas near its depots. TOTAL earlier said it<br />

<strong>want</strong>s to build more stations so it can eventually<br />

reach a critical mass of 300 to 350 stations. The<br />

company’s market share is about 4.3 percent according<br />

to data from the Department of Energy. If<br />

it meets the critical mass of stations, the company<br />

could grow its market share to about 10 percent.<br />

Qatar Petroleum considers Macedonia<br />

Qatar Petroleum is considering opening<br />

<strong>fuel</strong> stations in Macedonia, a Macedonian<br />

newspaper has reported. The news broke<br />

after a recent visit of a Macedonian government<br />

delegation to Qatar headed by Prime<br />

Minister Nikola Gruevski. The company,<br />

which plans to open 20 <strong>fuel</strong> stations in<br />

the territory of the Balkan country, says<br />

the location of the new <strong>fuel</strong> stations have<br />

already been chosen. Qatar is also interested<br />

in launching studies for possible oil and<br />

natural gas fields in Macedonia, but also<br />

in acquiring 49 percent shares in ELEM –<br />

Macedonian Power Plants.<br />

essar <strong>Oil</strong> renews agreement with Bharat Petroleum<br />

Essar Energy plc, announced that its subsidiary<br />

Essar <strong>Oil</strong> Ltd has renewed a major product sale<br />

and purchase agreement with Bharat Petroleum<br />

Corporation Limited (BPCL). The agreement<br />

gives the two <strong>companies</strong> the option of sharing<br />

each other's distribution infrastructure.


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7


News – eUrOPe<br />

8<br />

Fuel retailers must<br />

justify prices<br />

The Austrian Competition Authority<br />

(BWB) has asked the country’s leading oil<br />

<strong>companies</strong> and petrol station managers to<br />

comment on the current price developments.<br />

The BWB announced it had decided to<br />

take a closer look at recent pricing due<br />

to an increasing number of complaints.<br />

The authority is expected to await the<br />

reply of <strong>fuel</strong> retailers before deciding<br />

about a possible examination. If found<br />

guilty firms could face fines amounting<br />

to thousands of euros.<br />

Irish <strong>fuel</strong> industry<br />

<strong>want</strong>s change<br />

The Irish Petroleum Industry Association<br />

(IPIA) has proposed a suite of measures<br />

aimed at tackling the problem of illegal<br />

diesel washing in Ireland. In a statement,<br />

the industry body for Ireland’s <strong>fuel</strong> industry<br />

says that the practice is costing the<br />

Exchequer as much as 155 million euros<br />

annually in lost <strong>fuel</strong> duty. “While other<br />

jurisdictions have to tackle this sort of<br />

fraud, the sheer scale of criminal washing<br />

of diesel is a particularly Irish disease”, it<br />

said. The IPIA’s recommendations include<br />

the introduction of “a strong regulatory<br />

regime” to control the sale of rebated<br />

<strong>fuel</strong>, a new marker for off-road diesel<br />

that is harder to disguise or remove, the<br />

closure of unlicensed filling stations and a<br />

“radical overhaul” of the currently “absurd”<br />

penalties for offending retailers.<br />

Gazprom pledges<br />

to boost gas output<br />

next winter<br />

Gazprom’s Deputy Chief Executive Vitaly<br />

Markelov said the company planned to<br />

raise gas production after the launch of<br />

new fields. This year, Gazprom is set to<br />

commission the huge Bovanenkovo field,<br />

the biggest gas deposit in the Yamal<br />

Arctic region, with reserves of 4.9 trillion<br />

cubic metres of natural gas, enough<br />

to meet global demand for over a year.<br />

Severenergia, a joint venture between<br />

Gazprom’s oil arm Gazprom Neft and<br />

Russia’s top non-state gas producer<br />

Novatek as well as Italy’s Eni and Enel,<br />

are also set to launch Samburg field.<br />

“Taking into account all these launches,<br />

we expect that Gazprom’s output during<br />

winter of 2012 / 2013 could reach around<br />

1.644 billion cubic metres a day ... This<br />

is almost 2 percent higher than the last<br />

winter’s peak”, Markelov said.<br />

statoil pilots new <strong>fuel</strong> station shop format<br />

Leading Scandinavian forecourt retailer<br />

Statoil is piloting a new highway store<br />

format in Norway. Billed as a ‘test lab’, the<br />

site combines a modern interior design with<br />

an extensive food menu and contemporary<br />

seating area. Following a recent public offering,<br />

Statoil Fuel & Retail now operates<br />

as a standalone business concentrating on<br />

downstream operations. Statoil Fuel & Retail<br />

CEO Jacob Schram said that the ‘test lab’<br />

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site offers more seating, a children’s play area,<br />

better toilet facilities and a much broader<br />

menu, including sushi and breakfast products.<br />

“It’s very different to what you usually<br />

see in a <strong>fuel</strong> station”, he says. Statoil Fuel &<br />

Retail operates 2 300 sites in eight European<br />

markets. It has benefited from economic<br />

stability in its Scandinavian heartland and<br />

has a foothold in larger markets in Central<br />

Eastern Europe.<br />

Petrol’s 2011 net income rises to 48 percent<br />

Petrol Group d.d. said profit last year surged<br />

as Slovenia’s biggest energy company sold<br />

more oil products after it consolidated its<br />

units in the Balkans. Net income advanced<br />

48 percent to 52.3 million euros (US $ 68<br />

million) while revenue gained 17 percent to<br />

3.3 billion euros. The main driver was the<br />

rise of sales of <strong>fuel</strong>”, said Aleksander Salkic,<br />

a Petrol (PETG) spokesman. “We have also<br />

Chechnya woos Azerbaijan with oil<br />

Republic of Chechnya has invited Azerbaijan<br />

to tap its oil deposits. “Rosneft’s license<br />

to produce oil in Chechnya has expired.<br />

In this connection, we invite Azerbaijan<br />

to explore new deposits”, said Chechnya<br />

Finance Minister Ali Isayev. According to<br />

media reports, Chechen leader Ramzan<br />

Kadyrov has been annoyed by Rosneft’s slow<br />

response to a request to build a refinery<br />

with an annual capacity of 1 million tonnes,<br />

which would give him more independence<br />

consolidated our units in Montenegro, Croatia<br />

and bought new <strong>companies</strong> in Slovenia.”<br />

Petrol, which plans to increase the number<br />

of <strong>fuel</strong> stations to 527 by 2016, is benefiting<br />

from the acquisitions in the Balkans, where it<br />

has been expanding in the last decade having<br />

signed an MOU with Russia’s OAO Gazprom<br />

Neft (SIBN) to cooperate in the supply and<br />

distribution of oil products in that region.<br />

from Moscow. A Rosneft spokesman declined<br />

to comment. according to Russia’s<br />

Energy Ministry, Rosneft’s Chechnya<br />

subsidiary, Grozneftegaz, produced over<br />

800 000 tonnes of oil last year, accounting<br />

for around 7 percent of the parent company’s<br />

total output. Grozneftegaz’a proven<br />

reserves stand at 60 million tonnes of oil<br />

and 3 billion cubic metres of gas under<br />

Petroleum Resources Management System<br />

classification.<br />

russia’s oil producers actively acquiring<br />

During 2011 many industry players faced<br />

difficulties in the domestic market, some<br />

produced less oil, some failed to upgrade<br />

refineries in time, others did not get the tax<br />

incentives for field development and last<br />

spring’s “gasoline crisis” has drawn sharp<br />

criticism from government officials. This<br />

year, both problems and priorities will largely<br />

remain the same. However Rosneft got top<br />

marks on production, processing and sales<br />

according to the company’s head Edward<br />

Khudainatov referring to their 2011 results.<br />

In the Q4 2011 the company produced a<br />

record of 2 622 000 BOE / day and as a result<br />

has overtaken ExxonMobil as the world’s<br />

leading oil producer. <strong>Oil</strong> and gas condensate<br />

production for the year grew to 122.5 million<br />

tons (+2.5 percent on 2010), natural gas<br />

production – to 12.8 billion cubic metres<br />

(+3.6 percent).<br />

LUKOIL secures loan for Uzbek gas project<br />

Russia’s LUKOIL has signed a deal with<br />

a consortium of banks for a loan of up to<br />

US $ 500 million to develop the Kandym-<br />

Khauzak-Shady-Kungrad gas project in<br />

Uzbekistan. The loan will be used to finance<br />

development of the Kandym fields and to<br />

increase production in the Khauzak-Shady<br />

area. The banking consortium which will<br />

provide the financing includes the Asian<br />

Development Bank, the Islamic Develop-<br />

ment Bank, Credit Agricole, BNP Paribas<br />

and the Korean Development Bank. The<br />

company estimates the project’s recoverable<br />

reserves at 330 billion cubic metres of gas<br />

and is working with an expected production<br />

rate of 11 billion cubic metres per year of<br />

gas. LUKOIL holds a 90 percent stake in<br />

Khauzak-Shady-Kandym, with the remaining<br />

10 percent controlled by state-owned<br />

Uzbekneftegaz.


INA sees Croatian investment improving<br />

Croatian refiner INA-Indusrtija Nafte d.d.<br />

majority owned by MOL Nyrt. sees Croatia’<br />

investment environment improving said INA<br />

Chairman Zoltan Aldott. The Croatian government,<br />

which has a 44.84 percent stake in<br />

INA, is also interested in raising the company’s<br />

market share and strengthening its position<br />

in the south-eastern European region. The<br />

firm plans to re-invest all of its 2011 profits of<br />

1.9 billion kuna (US $ 333 million) this year<br />

into developing its gas station network and<br />

its refineries in Sisak and Rijeka, as well as<br />

international and Croatian production. “INA<br />

is one of the few European <strong>companies</strong> that<br />

believes in the future of refineries”, Aldott<br />

said, adding the firm will start an investment<br />

program of about US $ 450 million at<br />

the refineries.<br />

Alimentation Couche-Tard bid for statoil<br />

Statoil ASA’s Board of Directors has decided<br />

to pre-accept, subject to certain conditions,<br />

a cash offer from Alimentation Couche-Tard<br />

for the shares in the listed energy and retail<br />

company Statoil Fuel & Retail ASA at a con-<br />

sideration of NOK 53 per share (adjusted for<br />

any dividends and other distributions after 31st<br />

December 2011). The proceeds for Statoil’s<br />

54 percent stake in the company are estimated<br />

to NOK 8.6 billion (US $ 1.5 billion), assuming<br />

successful closing of the transaction. The<br />

offer delivers a premium of 53 percent to the<br />

current trading price. The parties expect to<br />

complete the transaction during the second<br />

quarter of 2012. As a result of the transaction,<br />

Statoil Fuel & Retail will no longer be<br />

consolidated in Statoil ASA’s accounts.<br />

LUKOIL buys in Belgium & Netherlands<br />

LUKOIL has signed a deal with Dutch Verolma<br />

Groep to acquire 59 gas stations in Belgium and<br />

the Netherlands, but did not disclose financial<br />

details. LUKOIL already has 168 gas stations in<br />

Belgium and in 2009 it bought a 45 percent stake<br />

in the Zeeland oil refinery in the Netherlands<br />

in which French oil major TOTAL holds the<br />

other 55 percent. “Entering the Dutch market fits<br />

with LUKOIL’s gas station expansion strategy”,<br />

Bulat Subaev, Managing Director of LUKOIL<br />

Belgium, said in a statement. Els Ruysen, LU-<br />

KOIL Spokeswoman in Belgium, said the deal<br />

was due to be completed in the second quarter<br />

once cleared by the anti-competition authorities.<br />

russia wastes enough energy to power Britain<br />

The world’s top oil and gas producer may be<br />

watching its energy riches blow away in the<br />

wind. Russia, in 2008, was wasting enough<br />

energy to power Britain for a whole year. It<br />

was then that President Dmitry Medvedev<br />

set a target to reduce energy intensity by<br />

40 percent before 2020. Russian <strong>companies</strong><br />

were 10 to 20 times less energy efficient than<br />

their foreign rivals, he said. Not enough has<br />

changed since Soviet times, critics say and<br />

wide-open windows remain a typical way of<br />

cooling overheated housing blocks. Even today<br />

around one-fifth of Russian boilers date back<br />

to the era of cosmonaut Yuri Gagarin’s space<br />

flight in 1961, or earlier. “We are two and half<br />

times less energy efficient than other comparative<br />

modern countries in Europe”, said Vasily<br />

Belov, head of the energy efficiency cluster<br />

at the Skolkovo Foundation.<br />

Friesacher builds budget station in slovenia<br />

Free Energy Trading (FE) Boss Markus Friesacher<br />

has said his enterprise has started<br />

constructing new no-frill service stations in<br />

Slovenia. The company currently manages 30<br />

low-cost petrol stations across Austria. Customers<br />

pay by credit or bank card at the stations<br />

which do not offer any extra services like a<br />

shop, car wash facilities or toilets. “We invest<br />

a third less in our stations than our rivals do”,<br />

said Friesacher. He said that regular petrol<br />

stations situated near FE service stations<br />

were usually lowering their prices. Asked<br />

for his secret of success, the businessman<br />

said he was trying to underbid them by 1.5<br />

to 2.5 eurocents per litre regardless of the<br />

general price levels.<br />

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News – eUrOPe<br />

YPF expropriation is unjustified<br />

& damaging<br />

Spanish Prime Minister Mariano Rajoy has<br />

said that Argentina’s decision to nationalize<br />

Spanish-controlled oil company YPF SA has<br />

no economic justification and damages the<br />

understanding between the two countries.<br />

“This regrettable decision has no economic<br />

justification or any reason”, Rajoy said at the<br />

World Economic Forum’s Latin America<br />

event in the Mexican Pacific resort of Puerto<br />

Vallarta. Argentine President Cristina<br />

Kirchner asked her country’s Congress to<br />

put 51 percent of YP, Argentina’s biggest<br />

oil company, in state hands, ousting flagship<br />

Spanish energy firm Repsol YPF SA<br />

as the majority shareholder. The Spanish<br />

prime minister said the decision by the<br />

Kirchner government, which accuses<br />

YPF of not producing enough from its<br />

concessions, sets a serious precedent and is<br />

negative for everyone. Rajoy said the “good<br />

understanding” with Argentina is broken<br />

following the expropriation.<br />

OMv predicts energy<br />

price jumps in europe<br />

OMV AG Chief Gerhard Roiss has claimed<br />

that psychological aspects often matter more<br />

regarding the price of oil than fundamental<br />

grounds. Roiss called the increase of car<br />

<strong>fuel</strong> prices a “delicate topic”. He said the<br />

price for mineral oil might rather drop in<br />

the future than rise further. But Roiss also<br />

stressed that he was not aware of trustworthy<br />

indicators for the development of oil<br />

prices in the coming years. He said that<br />

the price for energy products and services<br />

like car petrol and household heating could<br />

be twice as high as these days. The former<br />

OMV deputy chief – who has headed the<br />

Viennese company since 2011 – identified<br />

renewable energy sources as key factor for<br />

spiralling expenses.<br />

Hungarian government<br />

keeps excise tax<br />

Hungarian Economy Minister György<br />

Matolcsy has said that the government<br />

does not intend to lower the excise tax<br />

on petrol. Opposition MPs have urged<br />

the cabinet on numerous occasions to<br />

reduce the tax on <strong>fuel</strong>, the highest in<br />

the region. Matolcsy argued that lowering<br />

the excise tax would not significantly<br />

reduce prices at petrol stations and would<br />

cost the budget tens of billions of forints.<br />

Matolcsy also cited an EU directive that<br />

sets a minimum level of excise tax on <strong>fuel</strong>.<br />

High <strong>fuel</strong> prices are not a specifically<br />

Hungarian phenomenon, he said.<br />

9


News – eUrOPe<br />

10<br />

rosneft borrows Us $1 billion<br />

from Gazprombank<br />

OAO Rosneft (ROSN), Russia’s biggest<br />

oil producer, agreed to borrow US $ 1<br />

billion from OAO Gazprombank to fund<br />

operations. With interest, the deal totals<br />

US $ 1.19 billion, the state-controlled<br />

producer said. Tthe state-run natural-gas<br />

exporter and producers net debt climbed<br />

to US $ 15.9 billion at the end of last year,<br />

up 13 percent from the start of the fourth<br />

quarter and 16 percent from the start of<br />

the year, according to its website. Rosneft<br />

is boosting capital spending about 35<br />

percent to a record 480 billion rubles this<br />

year to help counter slowing production<br />

growth. Vladimir Putin called for Russia,<br />

the world’s biggest oil producer last year,<br />

to maintain output at more than 500 million<br />

metric tons (10 million barrels a day)<br />

for at least a decade.<br />

OMv Petrom expects<br />

record profits<br />

The leading Romanian oil company<br />

OMV Petrom (SNP.RO) has announced<br />

estimations for a new record high of its<br />

net profit, to reach 867.8 million euros<br />

in 2012, despite the slighter lower sales<br />

registered by the company and mirrored<br />

in a turnover estimated to decrease by 4.6<br />

percent, at 3.6 billion euros in 2012. The<br />

company forecast that local natural gas<br />

production will reach 5067 billion cube<br />

metres, less by 3 percent compared with<br />

the 5.214 billion cube metres registered<br />

last year. Petrom OMV has a budget of 1.2<br />

billion euros for this year, with 8.6 percent<br />

more compared with previous year. The<br />

largest investments will target operations<br />

and production, but the company also<br />

budgeted 777 million euros for refinery<br />

and marketing.<br />

Gazprom Neft may buy<br />

Hellenic Petroleum<br />

Gazprom Neft, is considering buying a<br />

stake in Greek oil refiner Hellenic Petroleum<br />

CEO Alexander Dyukov has said.<br />

Greece’s top privatisation official said last<br />

month that refiner Hellenic Petroleum,<br />

would be put up for sale by May to boost<br />

a much-delayed privatisation plan. “We<br />

are looking into the possibility of acquiring<br />

this asset. There are two decent plants<br />

with comparatively high capacity and refining<br />

depth”, Dyukov said. He added that<br />

Gazprom Neft’s investment programme<br />

for 2012 will be flat, comparing with<br />

2011. The Greek state owns 35.5 percent<br />

of Hellenic Petroleum.<br />

TNK-BP hydrotreater reconstruction<br />

TNK-BP’s Saratov oil refinery L-24-6 grade<br />

diesel capacity increased by almost 30 percent<br />

to 2.2Mta following reconstruction of its diesel<br />

<strong>fuel</strong> hydrotreater at the Saratov refinery, part<br />

of the large-scale upgrading programme of the<br />

company’s refining assets. The reconstruction<br />

of the two-train facility included the replacement<br />

of reactors, knockout drums, process<br />

equipment and heat exchangers. “With the<br />

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hydrotreater, Saratov oil refinery can now<br />

produce all types of diesel <strong>fuel</strong> with improved<br />

operating and environmental characteristics<br />

of Euro 4 and Euro 5 standards”, says Vitaly<br />

Zuber, Director of TNK-BP refining department.<br />

The company produces over 20 types<br />

of products, including unleaded gasoline,<br />

diesel <strong>fuel</strong>, <strong>fuel</strong> oil of all key grades, bitumen,<br />

vacuum gas oil, technical suphur and naphtha.<br />

Keeping europe dependent on russian <strong>fuel</strong><br />

Western Europe, already dependent on Russia<br />

for 40 percent of its oil and natural gas, is<br />

about to make itself even more dependent.<br />

Russian oil <strong>companies</strong> are buying European<br />

oil refineries, prompted by Europe’s need for<br />

major infusions of cash to offset the major<br />

economic downturn and to bring many insolvent<br />

refineries back into production. The<br />

Russian oil <strong>companies</strong> leading this effort are<br />

Gunvor, Rosneft and LUKOIL. One such<br />

refinery marked for a Russian buy-in is in<br />

Antwerp, Belgium. By acquiring the Antwerp<br />

refinery, the Russians will be expanding oil<br />

refining in Europe with <strong>Oil</strong> coming from<br />

Russia for refining. Another refinery is the<br />

Ingolstadt refinery in Germany on which<br />

Rosneft is bidding. The key both for Belgium<br />

and Germany is that the investor must also<br />

be able to provide the oil for refining. Rosneft<br />

already has other refinery investments in the<br />

Ingolstadt region.<br />

Fuel stations face forced closure in Bulgaria<br />

Some 500 <strong>fuel</strong> stations are facing forced closure<br />

over their failure to install level gauges, according<br />

to Ivaylo Nikolov, Chair of the Association of<br />

Traders at Small and Medium Filling Stations.<br />

In an interview Nikolov explained that a number<br />

of rural areas would be left without <strong>fuel</strong> stations<br />

and people would lose their jobs as a result. The<br />

deadline for the installation of the level gauges<br />

TOTAL extends ties with China<br />

French energy giant TOTAL SA has reached<br />

an agreement with China’s Sinopec on a joint<br />

venture for shale gas and refining. The news also<br />

quoted TOTAL’s Chief Executive Christophe de<br />

Margerie as saying that Chinese authorities now<br />

own a stake of 2 percent in the French company.<br />

TOTAL is in talks for the right to market <strong>fuel</strong><br />

expired on 2nd April alongside the deadline for<br />

the mandatory electronic connection of all commercial<br />

sites to the information system of the<br />

National Revenue Agency (NRA). The revenue<br />

authority has not yet come up with summarized<br />

data on the number of electronic devices already<br />

mounted electronic but tax officials are adamant<br />

that the deadlines are realistic.<br />

and petrochemicals in China produced by a<br />

planned refinery complex in the country’s South,<br />

de Margerie was quoted as saying. TOTAL<br />

reached a pact with China Petrochemical Corp.,<br />

or Sinopec, to search for and produce shale gas,<br />

a potentially lucrative market tapping natural<br />

gas trapped in rock formations.<br />

MOL not quitting gas transit pipeline<br />

Hungarian Prime Minister Viktor Orban was<br />

quoted by international media as breaking<br />

the surprising news that MOL is quitting<br />

Nabucco. The Nabucco Pipeline project is<br />

based on a treaty that was signed and ratified<br />

by the transit countries, including Hungary.<br />

The Intergovernmental Treaty establishes a<br />

unique and strong legal framework for lenders,<br />

producers and transportation customers. The<br />

Nabucco shareholder in Hungary is FGSZ, a<br />

MOL subsidiary and they have not had any<br />

indication that this will change. What is more,<br />

in addition to refuting the news about MOL’s<br />

quitting, the Consortium sought to make it clear<br />

that the project for the natural gas pipeline from<br />

Asia to Europe is making steady progress. “The<br />

project is seeing strong progress. The Project<br />

Support Agreements were signed by all transit<br />

countries in June 2011, thus finalizing the legal<br />

framework for the pipeline. In Hungary, three<br />

out of the four environmental permits have<br />

been granted”, the Vienna-based company said.


latest news, events, jobs online – www.PetrolPlaza.com<br />

News – MIddLe eAsT, AFrICA & AsIA<br />

11


News – MIddLe eAsT, AFrICA & AsIA<br />

12<br />

LATesT News, eveNTs, jOBs ONLINe – www.PeTrOLPLAzA.COM


Austria plans regulation of <strong>fuel</strong> prices<br />

People’s Party’s (ÖVP) Economy Minister<br />

Reinhold Mitterlehner has called for the<br />

creation of a stricter <strong>fuel</strong> price monitoring<br />

programme. Mitterlehner explained that his<br />

ministry plans to set up a “price corridor” valid<br />

for periods such as heavy vehicle traffic like<br />

weekends or holidays. The system will mean<br />

that Austria’s <strong>fuel</strong> stations must not charge<br />

more than the average price they are given<br />

for a seven to ten days period. Mitterlehner<br />

dismissed fears that <strong>fuel</strong> stations would jack<br />

up their prices disproportionally in the time<br />

span when prices were checked. He claimed<br />

that competition would avert such action.<br />

<strong>Oil</strong> not for sale until 2018 says russia<br />

ExxonMobil and their Russian partners Rosneft<br />

have a few billion barrels of oil waiting<br />

to come to market out of the Black Sea and<br />

deep Arctic. Rosneft shattered BP’s hopes<br />

of exploiting Russian Arctic oil last May by<br />

pulling out of a planned joint venture with<br />

the British giant after losing patience with<br />

protracted negotiations. ExxonMobil gladly<br />

took their place. But the oil and gas won’t be<br />

coming to market anytime soon and not until<br />

2018 at the earliest says Russia’s Deputy Prime<br />

Minister Igor Sechin. According to Rosneft,<br />

the estimated oil in place is 35.8 billion barrels<br />

and the estimated natural gas in those fields<br />

is estimated to be close to 10 trillion cubic<br />

metres, or 364 trillion cubic feet.<br />

sainsbury to buy 18 TOTAL filling stations<br />

J Sainsbury plc in the UK is set to buy 18 filling<br />

stations currently under the TOTAL brand<br />

from private equity firm Rontec Investments<br />

LLP, highlighting the continued importance<br />

of <strong>fuel</strong> to supermarkets as they try to attract<br />

cash-strapped customers. The retailer said<br />

the deal is subject to approval from the Office<br />

of Fair Trading, but didn’t say how much it<br />

Cartel to investigate oil <strong>companies</strong><br />

Germany’s competition authority has announced<br />

it has opened an investigation into<br />

five main oil refiners suspected of hampering<br />

smaller filling-station competitors. The Cartel<br />

Office said the five multinational oil <strong>companies</strong>,<br />

which also own most German filling stations,<br />

constituted an oligopoly. Soaring <strong>fuel</strong> prices<br />

have triggered political friction in Germany<br />

with some politicians advocating a form of<br />

price control or additional tax rebates to ease<br />

would be paying for the service stations “The<br />

acquisitions provide a unique opportunity to<br />

support our plans for growth and to extend the<br />

reach of the Sainsbury’s brand”, said Phillip<br />

Bell-Brown, Director of property development<br />

at the company. Currently Sainsbury has an<br />

8.7 percent share of the U.K. <strong>fuel</strong> market,<br />

with 262 outlets.<br />

the strain on commuters. The Federal Cartel<br />

Office in Bonn said independent retailers<br />

which buy petrol and diesel <strong>fuel</strong> from the five<br />

big oil groups had complained they sometimes<br />

had to pay a higher wholesale price than the<br />

retail price at filling stations. Independents<br />

sell about 13 percent of German <strong>fuel</strong> and,<br />

retail <strong>fuel</strong> prices sometimes change two or<br />

three times a day with motorists cruise to<br />

find the cheapest.<br />

exxonMobil continue sale of <strong>fuel</strong> stations<br />

ExxonMobil Corp has put 78 French gas<br />

stations up for sale, part of a wider effort to<br />

sell out of such activities in Europe. Esso<br />

France Chief Executive Francis Duseux has<br />

said there could be an agreement on the sale<br />

of the French service stations within weeks.<br />

ExxonMobil operates a total of 680 gas stations<br />

in France under the Esso brand name. Such<br />

gasoline distribution activities are seen as too<br />

unprofitable to justify tying up ExxonMobil’s<br />

capital and the stations will likely be sold to<br />

operators who would continue to operate under<br />

the Esso brand and be supplied through longterm<br />

contracts. In addition to independents,<br />

potential buyers for the service stations include<br />

Russia’s LUKOIL and Israel’s Delek.<br />

Timico expands Murco Petroleum network<br />

UK managed services provider Timico has rolled<br />

out additional technology to Murco Petroleum<br />

service stations. Murco has added 3G capability<br />

to its existing Timico WAN. The new Timico<br />

Mobile Access Management (MAM) service will<br />

allow systems in all of Murco Petroleum’s network<br />

of service stations across England, Scotland and<br />

Wales to automatically switch to the failsafe<br />

wireless back-up if connectivity is lost during<br />

business hours. Timico has provided Murco with<br />

a Private Wide Area Network (PWAN) to connect<br />

all of its retail sites to head office for seven years.<br />

latest news, events, jobs online – www.PetrolPlaza.com<br />

News – eUrOPe<br />

welcome Break<br />

signs IT services deal<br />

UK service station group Welcome Break<br />

has signed a three-year IT services contract<br />

with Phoenix to support its network of<br />

27 motorway retail complexes. Contract<br />

covers maintenance, desktops and servers.<br />

The Welcome Break sites cover a total of<br />

265 units, including Starbucks, KFC, Burger<br />

King and Eat In catering units, Waitrose<br />

and WHSmith retail units, Days Inn hotels<br />

and Shell and BP <strong>fuel</strong> forecourts. Phoenix<br />

has been providing IT support to Welcome<br />

Break since 2005. The value of the latest<br />

contract extension has not been disclosed.<br />

David Willock, director of IT at Welcome<br />

Break, said all the company’s site units use<br />

Welcome Break systems and processes,<br />

including electronic point of sale (EPOS),<br />

stock control and payroll.<br />

First automated <strong>fuel</strong>ling<br />

complex in Ukraine<br />

SOCAR Energy Ukraine has opened<br />

the first automated filling complex in<br />

Ukraine – SOCAR Rapid. It will be run<br />

without operators and service station attendants,<br />

“It will feature consistently high<br />

quality <strong>fuel</strong> at a lower price”, a statement<br />

said. Customers can fill cars by brand <strong>fuel</strong><br />

Nano 95, Nano diesel, A 95 and A 92 at<br />

prices lower than usual. One person will<br />

oversee the operation of the equipment,<br />

if necessary, explain the customer rules<br />

for using equipment and monitor the<br />

cleanliness of the area.The station will<br />

operate 24 hours a day all year.<br />

Goodbye my friend<br />

The funeral of Alex Galanis, who was<br />

killed tragically in a motorcycle accident<br />

last month, took place in his home town<br />

of Tonbridge, Kent, UK, on April 19th.<br />

At a special memorial service, held on<br />

the same afternoon, over 400 mourners<br />

packed into the Tonbridge School<br />

chapel to hear readings and sing hymns<br />

to celebrate his life. His family have set<br />

up a website in his name to raise money<br />

for the many charities close to his heart<br />

www.alexgalanisfoundation.org He will<br />

be sadly missed by me a great many other<br />

people. Editor.<br />

13


PrOdUCT News All text on this page is submitted and written by suppliers. Please email product news to editor@erpecnews.com<br />

14<br />

The Co-operative selects<br />

Torex products<br />

Torex, integrated technology solutions to<br />

the retail marketplace, has provided The<br />

Co-operative Group with an innovative,<br />

three tiered solution for their forecourt<br />

business. The Fuel Wrapper solution which<br />

features EFT Link, SMS Reporting and an<br />

IP-Connected Forecourt controller has been<br />

awarded the Retail Systems Award for best<br />

EPOS Innovation of the Year 2011. The<br />

Co-operative added 142 forecourt sites to<br />

its estate when it acquired the Somerfield<br />

business in 2009. There was the desire<br />

to integrate “Fuel” functionality into the<br />

Co-operative’s InControl EPOS system<br />

and Torex was chosen to collaborate in<br />

this endeavour. Torex Fuel Wrapper was<br />

designed specifically to meet the challenges<br />

of a changing landscape as <strong>fuel</strong> and<br />

convenience retailing come together rapidly,<br />

creating the need to combine complex <strong>fuel</strong><br />

POS with all its compliance requirements<br />

with normal convenience POS.<br />

Tokheim relies on its<br />

Ford transit fleet<br />

Tokheim a leading manufacturer and service<br />

provider of <strong>fuel</strong> dispensing equipment,<br />

has taken delivery of a new fleet of Transit<br />

commercial vehicles to help with their<br />

work in supplying and servicing installations<br />

at <strong>fuel</strong> retailers across Ireland. The<br />

contract includes the supply of 15 Transit<br />

models and a total fleet management and<br />

maintenance package covering road tax,<br />

tyre replacement, servicing, vehicle replacement<br />

and repairs. Casey King from<br />

Tokheim Ireland said: “The Transit is our<br />

favoured work vehicle which has proven to<br />

be dependable and <strong>fuel</strong> efficient, helping<br />

to keep our costs down.”<br />

Tanknology names<br />

new vice President<br />

Tanknology Inc a leading Underground<br />

Storage Tank (UST) environmental compliance<br />

services company, has announced<br />

the promotion of Ignacio Allende as the<br />

company’s Vice President of International<br />

Operations and Intellectual Property. Ignacio<br />

previously held the position of Director of<br />

International Operations, where he has been<br />

responsible for all aspects of Tanknology’s<br />

international presence. Under his leadership<br />

Tanknology has gained licensees in<br />

countries including Turkey, Mexico, South<br />

Africa and Nigeria. As a direct result of<br />

Ignacio’s success Tanknology now has a<br />

presence in more than 25 countries, covering<br />

6 continents.<br />

KPs launch Chinese production facility<br />

Swedish Ambassador Lars Fredén and and oil<br />

company VIP guests from Sinopec, Petrochina<br />

and TOTAL attended this launch to celebrate<br />

the start of production of KPS plastic petrol<br />

pipes in Beijing. Also present were specialists<br />

from the Chinese petrochemical standard<br />

organization SEI, from the Chinese test institute<br />

and from the Chinese environmental<br />

protection agency. The Chinese production<br />

facility will supply KPS piping to the Chinese<br />

LATesT News, eveNTs, jOBs ONLINe – www.PeTrOLPLAzA.COM<br />

market and is prepared for production of<br />

both single and double wall piping. Improved<br />

logistics with production closer to the rapidly<br />

growing Chinese market is the main reason<br />

for establishing a new pipe production hub.<br />

The pipes produced at the Beijing factory<br />

are already approved to EN 14125 by ERA<br />

Technology Ltd, UK and are of the same<br />

high quality as KPS pipes produced in the<br />

Swedish factory.<br />

New user interface improves customer service<br />

Tokheim has announced<br />

that its<br />

point of sale, Fuel<br />

POS, comes with<br />

a brand new graphical<br />

user interface<br />

in its latest release.<br />

The new look is a<br />

shift away from Fuel POS’s traditional blue<br />

screen to a more modern, sleek design. However,<br />

Fuel POS still follows the same intuitive<br />

layout of its predecessors to ensure existing<br />

users require no new training. Peter Van<br />

Nauw, System Product Marketing Director,<br />

says, “The new user interface is the result of<br />

more than a year of research with customers<br />

and design agencies”. Customers liked the<br />

ease of use of Fuel POS, but it was felt that<br />

we could improve its overall look and feel.<br />

The new design ensures a better. experience<br />

for staff through reduced eye fatigue, clearly<br />

marked icons and improved search options.<br />

OPw announce AvANCe <strong>fuel</strong>ling nozzles<br />

OPW Fueling Components EMEA is proud to<br />

announce that its next generation nozzle and<br />

system solution, AVANCE, is now available for<br />

sale across the EMEA region. AVANCE is a<br />

direct result of extensive consumer research<br />

as well as industry customer’s input on how a<br />

next generation nozzle should ideally perform<br />

and look. AVANCE’s technical innovations<br />

claim to be able to increase profitability,<br />

decrease service and maintenance costs for<br />

operators and protect consumers and the environment<br />

during the filling process. AVANCE<br />

is available as a conventional nozzle, a vapor<br />

recovery nozzle and as a fully certified and<br />

complete system solution with AVANCE<br />

hose and AVANCE swivel. The multi-plane<br />

swivel breakaway rotates 360 degrees around<br />

its axis and 70 degrees from side to side. All<br />

components are of course fully backwards<br />

compatible with the installed base in the field.<br />

PriceAdvantage partners with POs provider<br />

PriceAdvantage, a division of Skyline Products,<br />

announced a partnership with AutoGas,<br />

the provider of Point of Sale solutions and<br />

dispenser control systems. A joint customer<br />

with over 100 <strong>fuel</strong> sites has already begun<br />

the implementation plan that will integrate<br />

PriceAdvantage with AutoGas POS and Auto-<br />

Gas Fuel Controller. The expected results are<br />

that they will cut down their pricing process<br />

by 3 hours per day, allowing them to change<br />

prices 2 – 3 per day as opposed to currently<br />

changing prices once a day. PriceAdvantage<br />

receives daily surveys from store managers;<br />

then price proposals are sent for approval and<br />

upon approval PriceAdvantage synchronizes<br />

with the AutoGas POS system and AutoGas<br />

Fuel Controller to ensure that prices are<br />

updated from the store to the street.<br />

Kss Fuels launch ‘Client success’ initiative<br />

KSS Fuels have announced the launch of a<br />

new global initiative designed to help clients<br />

maximize the benefits of their relationship<br />

with KSS Fuels. Client Success is a dedicated<br />

department of industry, pricing and location<br />

intelligence gathering information system,<br />

available to all KSS Fuels clients to ensure<br />

they’re able to get the most value from their use<br />

of KSS Fuels’ products and services. With the<br />

ever-changing dynamics of today’s retail and<br />

wholesale <strong>fuel</strong>s markets, there are short-term<br />

challenges to address as well as opportunities<br />

to finesse <strong>fuel</strong>s strategies and tactics to gain<br />

incremental litres or profit margin. Client<br />

Success is said to augment clients’ existing<br />

capabilities by offering insight, proactive<br />

recommendations or practical support to<br />

ensure they protect their existing business and<br />

capitalize on the opportunities while taking<br />

care of day-to-day operations.


All text on this page is submitted and written by suppliers. Please email product news to editor@erpecnews.com<br />

revolutionary secondary containment system<br />

Franklin Fueling Systems (FFS) has announced<br />

the launch of ‘Gemini’ which they<br />

are calling “a true revolution in fittings design<br />

for secondary contained pipe systems”.<br />

Gemini provides simpler and safer secondary<br />

containment installation as well as materials<br />

and installation cost savings. Gemini works by<br />

splitting the secondary fitting into two pieces,<br />

enabling the installer to slide the secondary<br />

fitting away so that the primary joint can be<br />

fully welded, pressure-tested and inspected<br />

before welding secondary fittings. This process<br />

makes installing secondary containment<br />

more efficient and provides up to a 50 percent<br />

reduction in primary and secondary fittings,<br />

further reducing the number of parts, welds,<br />

time and overall cost. A dedicated website has<br />

been launched to support Gemini, featuring<br />

in-depth product information, multi-lingual<br />

literature downloads and videos introducing<br />

this innovative new product.<br />

Visit www.franklin<strong>fuel</strong>ing.com/gemini<br />

Torex and Gilbarco veeder-root join forces<br />

Torex has announced a new partnership with<br />

Gilbarco Vedeer-Root to offer customers the<br />

latest in integrated Outdoor Payment Terminal<br />

(OPT) technology. For the first time, Torex<br />

EPoS technology is being linked to Gilbarco<br />

Veeder-Root’s modern and flexible stand-alone<br />

FlexPay NP3 OPT. As rising <strong>fuel</strong> prices increase<br />

industry competition and the risk of drive-offs,<br />

FlexPay NP3 OPT technology provides a pre-<br />

pay option. The OPT can also be used to create<br />

a “fast lane” on sites, that allows <strong>fuel</strong>-only<br />

customers to quickly re-<strong>fuel</strong>, pay and leave, thus<br />

increasing throughput. FlexPay NP3 can also<br />

be used in unmanned mode, allowing drivers<br />

to purchase <strong>fuel</strong> 24/7 when the forecourt shop<br />

might be closed. The technology can be installed<br />

in remote rural areas where staffed forecourt<br />

sites might not be an option.<br />

Mepsan leading the way in Georgia<br />

Mepsan say they are the leading petroleum<br />

equipment supplier in the Georgian<br />

Petroleum marketplace having won <strong>fuel</strong><br />

dispenser and automation system tenders<br />

for GULF Company. Gulf Company entered<br />

the Georgian market aggressively<br />

by purchasing Magnati, Senta and ECO<br />

Companies in 2011 and by the beginning<br />

of 2012 had grown into a chain of 130 <strong>fuel</strong><br />

stations. Mepsan’s International Sales and<br />

Marketing Director Batuhan Kıroglu said<br />

that their vision is to become a well-known,<br />

reliable and respected Turkish brand worldwide.<br />

Batuhan expressed that it is not easy<br />

to create a brand but Mepsan has a clear<br />

vision and determination to succeed. “Only<br />

regionally focused and flexible <strong>companies</strong><br />

can grow in the geographical areas in which<br />

we operate” he said “the secret of Mepsan’s<br />

success is based on reliability and being a<br />

true partner, providing satisfaction, detecting<br />

customer needs and offering suggestions”.<br />

Morrison new 10-gallon remote fill box<br />

The Morrison 715 Series is a 10 gallon capacity<br />

remote fill box that provides containment<br />

of small spills during tank filling operations.<br />

All models are supplied with a male threaded<br />

connection inside and outside. The 715 may be<br />

ordered with a factory installed ball valve and<br />

a choice between a female quick disconnect<br />

check valve coupler with dust plug, or a dry<br />

disconnect adaptor and cap. Stainless steel<br />

models also available.<br />

latest news, events, jobs online – www.PetrolPlaza.com<br />

Neotec launch<br />

new range of Fuel<br />

dispensers<br />

PrOdUCT News<br />

Neotec Ltd. Greece, has recently launched<br />

the new MPD 8000 Series of electronic<br />

retail <strong>fuel</strong> dispensers. MPD 8OOO Series<br />

is a Low Hose Multiproduct Fuel Dispenser<br />

offering advantages of the latest technology<br />

combined with innovative design.<br />

MPD 8000 Series complies fully with the<br />

highest safety standards and all products<br />

and production facilities have been certified<br />

according EN ISO 9001:2008 ATEX<br />

94/9/EC and MID 2004/22/EC directive.<br />

wayne appointment<br />

in russia & CIs<br />

Wayne, a GE Energy Business and a global<br />

innovator of <strong>fuel</strong> dispensers and technologies,<br />

recently announced the appointment of<br />

Andrei Belomestnykh as Regional Manager,<br />

Russia & CIS. Belomestnykh is a proven<br />

leader in the industry and brings to Wayne<br />

extensive management experience – most<br />

recently with Shell, where he served nearly<br />

12 years in a series of progressive roles in<br />

Russia and Central and Eastern Europe<br />

in both sales and business development.<br />

During his tenure there, Belomestnykh<br />

managed Shell’s retail petroleum portfolio<br />

for the Commonwealth of Independent<br />

States (CIS). In his new role, Belomestnykh<br />

will develop and expand Wayne business<br />

activity within the Russia / CIS region,<br />

focusing his organization on customer development,<br />

revenue growth and profitability.<br />

“Andrei’s leadership and significant expertise<br />

provide him with a keen understanding<br />

of how to build business and innovate to<br />

reach key Wayne audiences”, said Damian<br />

Tracey, president, Wayne EMEA. “Andrei’s<br />

depth of experience will make an immediate<br />

impact as we continue to establish and<br />

strengthen connections in Russia.”<br />

15


FeATUre – Bever INNOvATIONs<br />

16<br />

From caves to canopies – LED<br />

Remko Delfgaauw talking with Nick Needs at the recent Petroforum event in Singapore<br />

Lighting applications for the retail petroleum industry have been revolutionised over the last few years, with the<br />

arrival of Led technology. In the process several new specialist suppliers have been pushed to the forefront of their<br />

marketplace, almost overnight. One such company is Bever Innovations from the Netherlands, working out of a<br />

back garden shed in 1996, but now dealing day to day with some of the largest oil <strong>companies</strong> in the business. Bever<br />

claims to be the only organisation working 100 percent in the petrol world, which they say is reflected in the unique<br />

features of their products, such as the Luci series Led under canopy Illumination and I-Catcher Led displays which<br />

are now used on petrol stations in over 40 countries. In 2009, the european Union recognised Bever as an official<br />

‘Green Light endorser’ for their efforts in energy efficient lighting.<br />

At the recent PetroForum in Singapore, CEO<br />

Remko Delfgaauw, spoke about the need for<br />

<strong>companies</strong> working in the energy market like<br />

his, to share the responsibility for producing<br />

more environmentally friendly products. As<br />

if he does not have enough to do at the moment<br />

with the rapid growth of Bever, he is<br />

currently discussing the idea of dealers having<br />

leasing agreements with energy suppliers,<br />

where they pay nothing for the technology,<br />

but what they save each month in energy,<br />

is what they would pay each month for the<br />

lease. The idea certainly has a great deal<br />

of merit and for any company wishing to<br />

discuss the matter further, I’m sure Remko<br />

will be happy to talk at length about this<br />

and the many other new concepts he has.<br />

For someone working in the energy market,<br />

Remko has his own self-generating energy<br />

source, which relentlessly drives the company<br />

LATesT News, eveNTs, jOBs ONLINe – www.PeTrOLPLAzA.COM<br />

forward. I caught up with him for an hour in<br />

Singapore, to find out what makes him tick and<br />

to talk about the subject of his presentation at<br />

the event ‘Understanding the LED Revolution’.<br />

This certainly seemed to be a good place to<br />

start as to be honest I had no idea!<br />

Remko explained. “LED is in fact the fourth<br />

generation of lighting technology. After the caveman<br />

had pioneered fire, incandescent lighting


lighting<br />

followed in 1870, invented by Thomas Edison.<br />

Gas discharge arrived in 1920 i.e. fluorescent<br />

tubes and neon lighting and another 40 years<br />

later in 1960, General Electric discovered Light<br />

Emitting Diode technology, LED. An electrical<br />

reaction occurring when a negative electron<br />

particle enters a positive one. This releases<br />

a photon that in turn gives off instantaneous<br />

light. To be exact, the strict definition of LED<br />

is a diode/semi-conductor converting electrical<br />

current into light or sometimes more simply<br />

put, a digital light”.<br />

I asked Remko why he opted for this ‘almost<br />

introductory’ approach. He countered “My<br />

presentation attempted to answer a few very<br />

simple questions which I think many customers<br />

still have. LED is taking over the world at a<br />

very rapid rate and its fairly difficult for people<br />

to get a grasp on what exactly the LED market<br />

is all about. So for my talk I first worked out<br />

five basic questions. What’s LED? How much<br />

light does an LED give? Where can the biggest<br />

savings be found? What makes or breaks an<br />

LED luminaire? What will the future bring?”<br />

For the uneducated amongst us I had to ask<br />

Remko what a luminaire was and he pointed<br />

out that it is a big flood light, like those used<br />

on forecourt canopies or for perimeter lighting.<br />

The simplistic angle to his presentation<br />

surely paid off when several delegates I spoke<br />

to said that these questions were exactly the<br />

type they were becoming too embarrassed to<br />

ask, proving his point totally.<br />

I asked Remko to talk freely about the benefits<br />

of LED from his perspective and to illustrate<br />

the varying factors applicable to LED in different<br />

parts of the world. Having travelled most<br />

of it during the last few years, he digressed<br />

“The main quality of this lighting type is its<br />

durability. A diode or a semi-conductor is very<br />

small and light so when it gets shaken around,<br />

nothing happens. Because of this it is virtually<br />

shock proof. Semi-conductors also have a very<br />

long life span.<br />

Being turned on and off very quickly is also<br />

a feature of LED, which does not harm it in<br />

any way, whereas a normal lamp would break<br />

much faster in these circumstances. In the life<br />

of a retail petroleum site, say in Asia where the<br />

power supply is unreliable, especially in the rainy<br />

season, surges of power are not conducive to a<br />

An interview with Remko Delfgaauw, CEO Bever Innovations by Nick Needs<br />

continuous lighting solution. When I was in<br />

India recently I did not see one petrol station<br />

with all its lights in operation at any time. I<br />

believe that LED technology is a great fit for this<br />

part of the world, just because it is so robust”.<br />

In Europe and the western world generally,<br />

where power grids are far more reliable, it is<br />

the cost of electricity that makes LED so attractive,<br />

particularly when prices are predicted<br />

to rise fast in the coming years. Remko told<br />

me that in Australia and South Africa, the<br />

dealers that he speaks to are coping with<br />

increased electricity costs of over 30 percent<br />

per year. I asked him how much of a saving<br />

a petrol station with LED lighting would<br />

make bearing in mind the initial investment<br />

required. He commented “The older metal<br />

halide lamps typically the 400 watt units used<br />

widely on petrol stations today, use 75 percent<br />

more electricity than LED lamps. On a site<br />

which has 18 – 20 such units, the energy savings<br />

would be extremely impressive. There is<br />

also the life span of a bulb to consider with the<br />

normal metalhalide variety lasting typically<br />

only 20 000 hours. The LED equivalent will<br />

last up to 5 times longer.”<br />

As mentioned earlier in this article, Bever<br />

operates only in the petrol station market. I<br />

asked Remko why this was so important to<br />

him. He says “It’s still the cornerstone of our<br />

company. You can’t compare us in size with<br />

the big lighting organisations which turn over<br />

billions of euros each year, but because we<br />

work only in the retail petroleum sector we<br />

know exactly what our customers <strong>want</strong>. For<br />

example our new remote control device like the<br />

one you might use with your television set, can<br />

manage and program our lamps individually<br />

just by pointing and clicking. The remote can<br />

even change the wattage of each lamp if there<br />

is a light imbalance of any sort to make sure<br />

that each part of the forecourt is illuminated<br />

evenly. This device has been developed purely<br />

with the petrol station in mind.<br />

The focus we have in the retail petroleum business<br />

allows us to constantly look for specialised<br />

solutions, not standard ones”. After studying<br />

all the Bever product listings, the one product<br />

feature which caught my eye was the facility<br />

with the Luci series for it to respond to<br />

traffic arriving on the forecourt. A sensor<br />

latest news, events, jobs online – www.PetrolPlaza.com<br />

FeATUre – Bever INNOvATIONs<br />

automatically ‘sees’ customers at the pumps<br />

and then switches lights from dimmed to full<br />

power, making direct energy and cost savings.<br />

Simple but extremely effective.<br />

Luci series intelligent lighting<br />

A remote control to easily change light settings from<br />

ground level<br />

I suggested to Remko that the colour of light<br />

produced by LED lamps has been an issue<br />

in the marketplace, being maybe too white<br />

and not yellow enough as supposedly <strong>want</strong>ed<br />

by some people. Is there any truth in this I<br />

asked? He said “These days, contrary to what<br />

people might think, we can produce LED light<br />

in any colour you <strong>want</strong>, whether it is for the<br />

shop, where a warmer yellow light might work<br />

better, or for outside on the forecourt, where<br />

a white bright LED lamp promotes a clean<br />

modern environment”.<br />

Looking in the Bever corporate brochure, a<br />

photograph of a huge Shell site in Luxembourg<br />

showed clearly the light differences between<br />

the inside and the outside of a petrol station.<br />

Remko told me that this was an exceptional<br />

project for them on one of the largest petrol<br />

sites in Europe, selling over 300 million litres<br />

of tax advantaged <strong>fuel</strong> per annum. Over 180<br />

17


FeATUre – Bever INNOvATIONs<br />

18<br />

luminaires were installed, which compares to<br />

a typical site usually requiring about 15 – 20.<br />

The saving on this one station alone, utilising<br />

LED lighting, was recently calculated at<br />

40 000 euros per year.<br />

How will you cope with the LED explosion if<br />

it carries on, considering you work all hours<br />

of the day, travelling thousands of miles in<br />

the process, was a question I put to Remko.<br />

He replied “I need to take care of my customer<br />

base and the people in my company. I am aware<br />

that when you move too fast you grow around<br />

the edges, but you lose your core strength and<br />

that’s what I don’t <strong>want</strong> to do. Of course we<br />

<strong>want</strong> to expand, but we <strong>want</strong> to stay only in<br />

Bever Innovations price change unit<br />

this marketplace and develop steadily over the<br />

coming years with a specific focus”.<br />

So what about other products, I asked, mentioning<br />

to Remko that Bever also sells price<br />

change units quite successfully. He pointed<br />

out that it was price signs that caused him and<br />

his partner to enter the LED market back in<br />

2004, carrying out maintenance programmes<br />

for another lighting company from Holland, LTI.<br />

Bever, once established, went on to develop<br />

units, which would show significant increases<br />

in the levels of quality being offered at the<br />

time. Starting off first in the Netherlands<br />

and then securing a contract in Norway with<br />

Kubald. They were then nominated as one of<br />

the ‘Evolution project’ suppliers to Shell in<br />

2007. From this springboard; it seems they<br />

never looked back.<br />

I suggested to Remko that when they received<br />

the Shell contract, it must have been a time<br />

for celebrating with a beer, or two that evening,<br />

but he pointed out that things just don’t<br />

happen in one day. “You cannot say that any<br />

specific point determined our success and like<br />

everyone else we have had contracts signed and<br />

sealed which did not deliver any business for a<br />

long time. It is just the way things are in this<br />

industry”, he told me.<br />

Price change units are still very much part of<br />

the Bever company portfolio of products and<br />

Remko summed the immediate opportunities<br />

by saying. “The marketplace in price sign units<br />

is defined and constant but it does not change<br />

LATesT News, eveNTs, jOBs ONLINe – www.PeTrOLPLAzA.COM<br />

so fast. It is just that at the moment the LED<br />

market is opening up far bigger opportunities”.<br />

Do you still manufacture your own products,<br />

I asked? He replied, seemingly proud “We<br />

manufacture our price change units and our<br />

Luci lighting systems in our home market. We<br />

buy in the LEDs, but we develop and install<br />

the product intelligence. Every system has in<br />

fact programmable intelligence on board.<br />

We have a very special production facility close<br />

to our offices in Zierikzee, which is a social<br />

factory, operated by workers who often may<br />

be overlooked for permanent positions in the<br />

work chain for a variety of different reasons.<br />

Supporting this initiative is very close to the<br />

ethos of the company and it is definitely a<br />

win-win situation for everyone. The products<br />

manufactured there are of the highest quality”.<br />

It certainly seems that the LED technology<br />

has a bright future, forgive the pun. The question<br />

of how many more suppliers, specialised<br />

or non-specialised will come into the market<br />

to service this huge appetite for lighting<br />

supremacy, remains to be seen. I imagine<br />

though that in any occurrence, Bever will<br />

be there, ahead of the field for a good many<br />

years to come.<br />

More details www.beverinnovations.com


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20<br />

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ALTERNATIVEFUEL NEws<br />

Boeing stage trans-Pacific bio<strong>fuel</strong> flight<br />

Boeing and All Nippon Airways have declared<br />

their first ever trans-Pacific bio<strong>fuel</strong> flight a success.<br />

In the inaugural crossing, a 787 Dreamliner<br />

aircraft flew from the Boeing Delivery Centre in<br />

Everett, Washington, to Tokyo Haneda Airport;<br />

<strong>fuel</strong>led by a mixture of bio<strong>fuel</strong> derived from used<br />

cooking oil and conventional <strong>fuel</strong>. The flight<br />

cut about 30 percent off the standard carbon<br />

emissions for a trans-Pacific flight. 10 percent<br />

Germany’s green energy solutions<br />

Germany’s solution to a large part of its<br />

energy dilemma may lie in a muddy field in<br />

desolate, windswept flatlands in the northeast.<br />

In an area 75 miles north of Berlin that until<br />

now has attracted more birdwatchers than<br />

cutting-edge industries. Start-up Enertrag<br />

AG, with the help of partners Vattenfall,<br />

TOTAL and Deutsche Bahn, is operating one<br />

of the first plants to generate wind power and<br />

convert it into hydrogen. Politicians are said<br />

to be very interested and Hydrogen, among<br />

its many advantages, is predictable. It can<br />

be contained and transported without any<br />

carbon emissions. It can be used to generate<br />

of that reduction was credited to the bio<strong>fuel</strong><br />

used. While the remainder was attributed to<br />

the efficiency of the medium sized Dreamliner<br />

aircraft. Osamu Shinobe, ANA VP hailed the<br />

‘historic flight’ stating that “using sustainable<br />

bio<strong>fuel</strong>s across the Pacific Ocean highlights<br />

how innovative technology can be used to<br />

support our industry’s goal of carbon-neutral<br />

growth beyond 2020”.<br />

power and heat, <strong>fuel</strong> cars or go into natural<br />

gas pipelines as an extra ingredient. Hydrogen<br />

has been quoted as the only energy<br />

source that can safeguard energy supply over<br />

long periods.<br />

solar powered hydrogen <strong>fuel</strong> cell buses<br />

San Francisco Bay area transit agency, AC<br />

Transit, recently inaugurated on-site solarpowered<br />

hydrogen generation for <strong>fuel</strong>ling for<br />

the agency’s <strong>fuel</strong> cell buses, using electrolysis<br />

equipment from Proton and a large 500 kilowatt<br />

solar power array. For years hydrogen <strong>fuel</strong> cell<br />

vehicles and the hydrogen economy were to be<br />

the way to clean up the transportation system.<br />

A new project run by AC Transit, the transit<br />

agency covering the eastern half of the San<br />

Francisco Bay Area is implementing on-site<br />

hydrogen production using solar electricity<br />

and water to provide <strong>fuel</strong> for the agency’s<br />

twelve hydrogen <strong>fuel</strong> cell buses.<br />

Hertz introduces CNG vehicle rentals<br />

If you’re traveling to Oklahoma City any time<br />

soon, Hertz will give you the option of renting<br />

a Honda Civic or GMC Yukon that runs on<br />

Compressed Natural Gas. The vehicles will<br />

have a Hertz Neverlost GPS System on-board<br />

that will assist with locating a CNG re<strong>fuel</strong>ling<br />

station. The state also has 70 CNG stations<br />

that are already in use or about to come<br />

south American flight uses bio<strong>fuel</strong><br />

Chile has taken a leading position in the race<br />

for more sustainable commercial aviation. Last<br />

week, a one-hour LAN Airlines flight from<br />

Santiago to Concepción used a bio<strong>fuel</strong> that<br />

reduces carbon emissions. “The traditional<br />

aviation <strong>fuel</strong> comes from oil and it releases<br />

online. Hertz is, of course, playing up both<br />

the green angle and the fact that CNG is a<br />

domestically produced <strong>fuel</strong>. Hertz already<br />

rents CNG vehicles in Italy and the UK and<br />

CNG cars can be rented at a Hertz outlet at<br />

Oklahoma State University, but this marks<br />

the first time that the company has offered<br />

CNG cars at an airport location.<br />

CO 2 when used in planes. When using bio<strong>fuel</strong>,<br />

the CO 2 released is almost the same as<br />

that captured by a plant during its growth,<br />

so there is no additional release of CO 2 into<br />

the atmosphere”, explained Enrique Guzman,<br />

environmental manager of LAN.<br />

Food waste to <strong>fuel</strong><br />

Oslo’s city buses<br />

News<br />

Stale bread, banana peels, coffee grounds and<br />

other food waste will be transformed into green<br />

<strong>fuel</strong> for Oslo’s city buses starting next year.<br />

The Norwegian capital’s new biogas plant will<br />

supply the <strong>fuel</strong> and also provide nutrient-rich<br />

bio-fertilizer for agriculture. The plant will be<br />

able to process 50 000 tonnes of food waste<br />

annually, converting it to environment-friendly<br />

<strong>fuel</strong> for 135 municipal buses as well as enough<br />

bio-fertilizer for roughly 100 medium-sized<br />

local farms. Biogas is a carbon dioxide-neutral<br />

<strong>fuel</strong> produced from biomass such as food<br />

waste, sewage sludge and manure. Currently,<br />

65 Oslo buses are powered by biogas produced<br />

from sludge from the city’s sewage treatment<br />

plant. When the new biogas plant reaches its<br />

full capacity in 2013, the local bus company<br />

will have enough biogas for at least 200 buses.<br />

Fuel cell buses and<br />

cars begin operating<br />

Linde’s newest hydrogen <strong>fuel</strong>ling station has<br />

officially opened at AC Transit’s municipal<br />

bus operating division in Emeryville, CA in<br />

the US. It is <strong>fuel</strong>ling twelve <strong>fuel</strong> cell buses<br />

and up to twenty passenger cars a day. This<br />

is the first public hydrogen station in the San<br />

Francisco Bay area. It offers fast <strong>fuel</strong>ling at<br />

both 700 bar and 350 bar pressure with a<br />

delivered gas temperature of -40°C. Daimler<br />

tested <strong>fuel</strong> cell cars at the station on several<br />

occasions to show that it successfully meets<br />

all requirements; the station can fill four <strong>fuel</strong><br />

cell vehicles back-to-back at a fill time of three<br />

to four minutes per car. The station is one of<br />

two being supplied by Linde North America,<br />

a member of the Linde Group, to AC Transit.<br />

Athens converts to CNG<br />

The city is studying the possibility of buying<br />

garbage trucks powered by compressed natural<br />

gas with the idea of changing the city’s fleet of<br />

vehicles to the alternative <strong>fuel</strong> source in the<br />

next few years. The City Council has approved<br />

a resolution to seek prices for compressed<br />

natural gas <strong>fuel</strong>ling stations, equipment and<br />

vehicles. The city would like to reduce its<br />

dependence on foreign <strong>fuel</strong> sources and spend<br />

less money on <strong>fuel</strong> for city vehicles. The city’s<br />

<strong>fuel</strong> budget this year is based on a $ 3.50 per<br />

gallon price, but the price of compressed<br />

natural gas is about only $1.40 a gallon.<br />

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21


Us looking to use its<br />

natural gas reserves<br />

The price of natural gas in the US has slumped<br />

below US $ 2.00, reaching its lowest level in<br />

more than a decade. It has quickly turned into<br />

a favourite among consumers, <strong>companies</strong> and<br />

futures’ traders. The problem now is what to<br />

do with it? The country’s supply of natural gas<br />

is growing faster than demand with analysts<br />

worrying the country’s underground storage<br />

facilities could reach capacity by this autumn.<br />

“The main problem the US is facing now is<br />

where to store all that gas, which is a lot<br />

less safe to store than oil, for example”, says<br />

Vladimir Rozhankovsky, Head of Research at<br />

Nord Capital in Moscow. U.S. possesses a 4.1<br />

trillion cubic feet storage system.<br />

ALAN Brands remove<br />

the FINA name<br />

Seeking to signal a change physically, but to<br />

also dispel any sense of instability, ALON<br />

Brands Inc. officially unveiled its new <strong>fuel</strong><br />

brand, ALON. At the same time, it is retiring<br />

the FINA name in favour of its corporate<br />

parent’s identity. ALON Brands began removing<br />

the FINA name at its branded locations<br />

in eight states last month. In its place, the<br />

ALON brand has emerged, retaining the<br />

red-white-and-blue graphic imagery, but now<br />

more closely tied to its supply roots with its<br />

parent, Alon Israel <strong>Oil</strong> Co. Ltd.<br />

Quantum receives over<br />

Us $ 700 000 in orders<br />

Quantum Fuel Systems Technologies Worldwide,<br />

Inc., a global leader in natural gas, hydrogen<br />

and hybrid electric vehicle technologies, announced<br />

it has received additional purchase<br />

orders exceeding US $700 000 for its ultra<br />

light-weight composite high pressure compressed<br />

natural gas (CNG) storage tanks for<br />

applications in heavy duty and light duty fleet<br />

vehicles. Alan Niedzwiecki, President and<br />

CEO of Quantum, stated, “The low natural<br />

gas prices, combined with the availability of<br />

new EPA-compliant natural gas trucks from<br />

major OEMs is prompting many corporations<br />

to re-evaluate their fleet strategies to include<br />

clean natural gas trucks. Natural gas vehicles<br />

are an ideal solution to meet corporate ‘greening’<br />

and sustainability goals, while also benefiting<br />

from tremendous savings in <strong>fuel</strong> costs.”<br />

USA NEws<br />

Coles stops transmission of pump prices<br />

Retail giant Coles is refusing to release its daily<br />

petrol prices to the RAA <strong>fuel</strong>-finder website. The<br />

company that supplies the data to RAA said<br />

ColesExpress had made a “strategic decision” not<br />

to release the information. RAA senior analyst<br />

Chris West said the group was disappointed.<br />

“Transparency in <strong>fuel</strong> pricing is what motorists<br />

22<br />

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– www.PeTrOLPLAzA.COM<br />

need to identify where they can access the<br />

cheapest price”, he said. “They (ColesExpress)<br />

are major competitors and it would have made<br />

sense for them to continue to provide their prices<br />

as a point of comparison and try and attract<br />

potential customers, but they have chosen to<br />

do that and that is their prerogative.”<br />

Gulf <strong>Oil</strong> expands partnership in Texas<br />

Less than a year since announcing its return<br />

to its Texas roots, Gulf <strong>Oil</strong> said that it is<br />

continuing its expansion in the Lone Star<br />

state through a partnership with Petroleum<br />

Wholesale LP. The agreement calls for an<br />

immediate re-branding of 50 service stations<br />

in the Houston area. Gulf’s new partnership<br />

with Petroleum Wholesale, a 41 year old,<br />

privately held, full service distributor offering<br />

branded and wholesale motor <strong>fuel</strong>s to retail<br />

convenience stores and travel centres in ten<br />

states in the south western United States, also<br />

calls for adding 15 new Gulf locations each<br />

year for the next 10 years.<br />

Outcast and Gilbarco display film ratings<br />

Outcast, which provides television at the pump<br />

announced it will display film ratings from<br />

Flixster – a popular mobile movie application<br />

used by more than 29 million people every<br />

month. The information will be seen on over<br />

13 000 screens nationwide, including top-ofthe-line<br />

dispensers from their partner, Gilbarco<br />

Veeder-Root. Nathan Gill, Chief Revenue<br />

Officer from Outcast said: “With Flixster at<br />

the pump, we can keep our active audience<br />

informed about the most talked about movies<br />

of the week.” “Gilbarco is pleased to offer our<br />

customers using Applause TV with Outcast<br />

yet another outstanding content offering”, said<br />

Chris Whitley, Vice President Marketing at<br />

Gilbarco. “Outcast Media continues to bring<br />

retailers the best content to build loyalty with<br />

<strong>fuel</strong>ling customers.”<br />

ePA approves e15 and 10 000 blender pumps<br />

The U.S. Environmental Protection Agency<br />

approved the first applications for registration<br />

of ethanol for use in making gasoline that<br />

contains up to 15 percent ethanol known as<br />

E15. To enable widespread use of E15, the<br />

Obama Administration has set a goal to help<br />

<strong>fuel</strong>ling station owners install 10 000 blender<br />

pumps over the next 5 years. In addition, both<br />

through the Recovery Act and the 2008 Farm<br />

Bill, the U.S. Department of Energy and U.S.<br />

Department of Agriculture have provided<br />

grants, loans and loan guarantees to spur<br />

American ingenuity on the next generation<br />

of bio-<strong>fuel</strong>s.<br />

ArCO installs inOvationTv at 138 sites<br />

ARCO has signed to have inOvationTV<br />

installed at 138 of its stations immediately<br />

through a partnership with Gas Station TV<br />

(GSTV), a national away-from-home televi-<br />

sion network at the pump and Wayne, a GE<br />

Energy Business and global innovator of <strong>fuel</strong><br />

dispensers and technologies. The new stations<br />

will add more than three million monthly<br />

impressions to the GSTV Network. As part<br />

of this relationship, ARCO is also making<br />

inOvationTV available at no charge to any of<br />

its 1 400 retailers that qualify. inOvationTV<br />

is available as a retrofit to existing Wayne<br />

Ovation <strong>fuel</strong> dispensers, or can be included<br />

at no charge with new Ovation dispenser<br />

purchases.


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