Essar Oil (UK) Limited, a leading integrated downstream energy company, has announced its plans to expand fuel distribution into new markets in the South East region of England. This expansion comes as a result of a recently signed agreement with Oikos Storage Limited, a provider of refined petroleum product storage based in Essex.
The agreement with Oikos Storage will allow Essar to broaden its operations beyond its traditional North West and Midlands regions, establishing a new position in the Thames region. By utilising Oikos’ storage facility on Canvey Island, Essar will be able to store and distribute middle distillate fuels to serve the Thames region. Additionally, Essar 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 transported from Essar’s Stanlow refinery to the Midlands and Northampton regions through the UKOP system. However, with this new agreement, Essar will pump its imports of middle distillates from Oikos to the Midlands and Northampton regions, ensuring a more resilient and secure supply system. This move will not only enhance Essar’s supply proposition in the Midlands but also provide alternative supply options to customers in the largest market in the country, the Thames region.
CEO of Essar Oil UK, Deepak Maheshwari, expressed his excitement about the agreement, stating that it represents a significant step in Essar’s strategic downstream ambitions. He believes that it will boost capacities and enable the company to meet the growing demand in Northampton and Kingsbury. Additionally, he highlighted the opportunity to leverage Essar’s automotive fuel expertise to serve existing and new markets across London and the South East.
Carlos Rojas, chief marketing officer of Essar Oil UK, emphasised the importance of supply resilience and security for their customers. He stated that the agreement with Oikos demonstrates Essar’s commitment to strengthening their supply proposition in the Midlands while expanding their customer offering to the Thames region. He looks forward to welcoming customers to Essar’s new facility at Oikos.
Arun Sriskanda, managing director of Oikos, expressed his delight in entering into a long-term contractual commitment with Essar Oil UK. He highlighted the synergies between their operations, particularly in terms of marine logistics and access to major cross-country pipelines. He believes that this partnership will not only improve the UK’s fuel connectivity and supply chain resilience but also enhance Oikos’ site capability as they prepare for future fuel trends. Oikos is excited to play a supporting role in Essar’s UK midstream operations.
Overall, the agreement between Essar Oil UK and Oikos Storage is seen as a significant development in the expansion of Essar’s fuel distribution capabilities. It will allow Essar to tap into new markets, strengthen its supply system, and provide enhanced options for its customers in the South East region of England.
For more information visit www.essaroil.co.uk
