- Essar has signed agreement with Oikos Storage (Canvey Island) to expand fuel distribution into new markets beyond its traditional North West and Midland regions
- Agreement with Oikos Storage Limited enables Essar to build a new position in the Thames region whilst providing significant resilience to its supply system in the Midlands via alternative supplies through the UKOP pipeline system
10 JULY 2023 – Essar Oil (UK) Limited (“Essar” or the “Company”), the leading integrated downstream energy company, announces that it has signed an agreement (the “Agreement”) with Oikos Storage Limited (“Oikos”, the Essex-based storer of refined petroleum products, to expand its operations into London and the South East of England.
Under the Agreement, Essar will store and distribute middle distillate fuels at Oikos’ Canvey Island facility to serve the Thames region. Furthermore, the Agreement will leverage Oikos’ connectivity to the United Kingdom Oil Pipeline (“UKOP”) system to supply the Northampton and Midlands regions.
Currently diesel and jet fuels are pumped from the Stanlow refinery to the Midlands and Northampton regions along the UKOP system. As a result of this Agreement, Essar’s imports of middle distillates will be pumped from Oikos to Northampton and the Midlands regions, providing significant supply resilience and increasing Essar’s security of supply proposition. The Agreement will also see Essar gaining access to the largest market in the country, the Thames region, providing alternative supply options to customers in the region.
Deepak Maheshwari, CEO of Essar Oil UK, said: “This Agreement represents a significant step in Essar’s strategic downstream ambitions, boosting capacities and ability to meet demand at Northampton and Kingsbury. We are delighted to be working with Oikos to gain access to the largest market in the country, leveraging our strong automotive fuel expertise to serve existing and new markets across London and the South East.”
Carlos Rojas, Chief Marketing Officer of Essar Oil UK, said: “Supply resilience and security of supply are paramount for our customers. This Agreement is a testament of Essar’s commitment to strengthen our supply proposition in the Midlands whilst opening the opportunity to extend our winning customer offering to customers in the Thames region. We look forward to welcoming them to our new facility at Oikos.”
Arun Sriskanda, Managing Director of Oikos, said: “Oikos is delighted to enter into a long-term contractual commitment with Essar Oil UK Limited. There are great synergies between our operations with our advantaged marine logistics and access to major cross-country pipelines. This partnership will improve the UK’s fuel connectivity and supply chain resilience, as well as develop our site’s capability as we prepare for future fuel trends. We look forward to playing an important supporting role in Essar’s UK midstream operations.”
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NOTES TO EDITORS
About Essar in the UK
Essar Oil (UK) Ltd is committed to playing a key role in the decarbonisation of the UK economy, with ambitious plans to build an energy transition cluster in the North West of England.
Essar is transforming for tomorrow, and through Essar Oil (UK), is leading this change in the UK by developing projects in refinery decarbonisation, biofuels, and new energies logistics to help deliver the UK’s energy transition ambitions.
Our Retail business in the UK is transforming with a fresh, new purpose: ‘Driving Community Convenience’ – focused on serving the convenience needs of the local communities where our sites are a hub.
With a growing forecourt network and increasing brand presence across the country, we believe we can deliver ‘Driving Community Convenience’ by making it easy for customers, simple for staff and providing value for retailers. For over 60 years we have used our blending skills, expertise and know-how to safely produce high quality, additivated fuels for all driving needs.
Today, we’re transforming our business to deliver the UK’s first low carbon refinery, so our customers have direct access to premium products at excellent prices, manufactured in a lower carbon way.
Essar is a leading integrated UK-focused downstream energy company whose main assets are the Stanlow Manufacturing Complex, one of the most advanced refineries in Europe situated close to the major cities of Liverpool and Manchester and Tranmere Terminals.
The company has 800 employees, and is a key strategic national asset, annually producing over 16% of the UK’s road transport fuels, while playing a key role in Britain’s broader petrochemical industry.
The company is a major supplier in the North West and beyond with customers including most of the major retail brands operated by international oil companies and supermarkets, Manchester Airport, leading commercial airlines and the region’s trains and buses.
Since acquiring Stanlow in 2011, Essar has invested $1 billion in margin improvement and other efficiency initiatives to ensure the refinery remains competitive in a rapidly changing market. Essar Oil (UK) is committed to becoming the UK’s first low-carbon refinery, investing £1billion over the next five years to support the development of the UK hydrogen economy and to decarbonise its operations.
About Oikos Storage Limited
Oikos is a nationally significant bulk liquid, oil and fuel import and storage facility. They have been operating since 1936 on Canvey Island, Essex. For over 80 years, Oikos has been importing, handling, storing and delivering products safely and securely and has an excellent track record in health, safety and environmental practices.
Committed to continuous growth and development throughout its history, the company’s 70 acre (28 ha) facility on the River Thames estuary supports key UK customers as a marine fed bulk liquid import and storage facility, with a total tank capacity of 300,000 cubic metres.
Today, Oikos primarily imports, stores, and distributes refined petroleum products and offers the benefits of more than eight decades of experience in bulk liquid storage and handling. Operating 24/7, 364 days a year, the Canvey Island terminal is one of the most technologically advanced storage facilities in Europe and the only independent Thames facility connected to two national fuel distribution pipeline networks.
Occupying a prime location on the north side of the River Thames and 40 miles east of London, the terminal benefits from good access to national road networks, shipping routes and the UK’s key fuel distribution pipelines. This enables Oikos to supply vital road and aviation fuels to industry and national airports, including Heathrow, Gatwick, and Stansted airports as well as other storage facilities across the country. The facility also connects the UK to the European fuel supply distribution networks through links to the Antwerp-Rotterdam-Amsterdam region and also receives product from other international ports.
Media contacts
Michelle Lewis, Corporate Affairs Director, Essar: michelle.lewis@essaroil.co.uk / 07805 854169
Peter Ogden, Powerscourt: peter.ogden@powerscourt-group.com / 07793 858211
Dentons Global Advisors on behalf of Oikos Storage Limited: OIKOSUK@dentonsglobaladvisors.com / 07752 65556
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