Essar Oil UK to expand fuel distribution into London, South East of England

Essar Oil (UK) Limited, a leading integrated energy company, said on Monday it had signed an agreement with the Essex-based petroleum products storage company to expand its operations in London and the southeast of England.

The company owns the British Stanlow Oil Refinery and a network of gas stations in the country.

“Under the agreement, Essar will store and distribute medium distillate fuel at Oikos’s Canvey Island facility to serve the Thames region. Furthermore, the agreement will strengthen Oikos’ connection to the UK Oil Pipeline System (UKOP) supplying Northampton and the Midlands, the company said in a statement.

Currently, diesel and jet fuel are pumped from the Stanlow Refinery to the Midlands and Northampton regions along the UKOP system.

“As a result of this agreement, imports of Esar middle distillates from Oikos will be channeled into Northampton and the Midlands regions, providing significant supply flexibility and increasing Esar’s security in supply. The agreement will also see Esar access to the largest market in the country, the Thames Region, Alternative supply options for customers in the region.

The agreement with Oikos Storage Limited enables Essar to build a new site in the Thames region while providing great flexibility to its supply system in the Midlands via alternative supplies through the UKOP pipeline system.

Deepak Maheshwari, CEO of Essar Oil UK, said: “This agreement marks an important step in Essar’s strategic downstream ambitions, strengthening capabilities and capacity to meet demand in Northampton and Kingsbury. We are delighted to be working with Oikos to access the largest market in the country,” Leveraging our strong motor fuels expertise to serve existing and new markets across London and the South East.”

Carlos Rojas, Chief Marketing Officer, Essar Oil UK, said: “Supply flexibility and security of supply are paramount to our customers. This agreement is testament to Essar’s commitment to strengthening our supply proposition in the Midlands while opening up the opportunity to extend our winning offering to clients in the Thames area We look forward to welcoming them to our new facility in Oikos.”

Arun Sriskanda, Managing Director, Oikos, said: “There are significant synergies between our operations with our advantageous marine logistics and access to major pipelines across the country. This partnership will improve UK fuel connectivity and supply chain resilience, as well as develop site capacity As we prepare for future fuel trends, we look forward to playing an important supporting role in Essar’s UK midstream operations.