Essar Oil (UK) has signed an agreement with Essex-based Oikos Storage, a 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, it said in a statement.
“This agreement represents a significant step in Essar’s strategic downstream ambitions, boosting capacities and ability to meet demand at Northampton and Kingsbury,” CEO of Essar Oil UK Deepak Maheshwari said.
Currently diesel and jet fuels are pumped from the Stanlow refinery to the Midlands and Northampton regions along the UKOP system.
Following 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.