The Essar Oil UK Group of companies has acquired of a number of assets from BP to strengthen its logistics infrastructure network as it expands its supplies to service stations.
There are currently 67 Essar-branded service stations across England and Wales, and the company has confirmed plans to grow its network to 400 retail sites over the next five years.
Under the agreement, Essar will acquire an equity stake in the UKOP pipeline, a share of the contractual joint venture (with Shell) which runs the Kingsbury Terminal and a 100% interest in the Northampton Terminal.
Essar Oil UK chief executive officer, S.Thangapandian, commented: “Essar continues to have great faith in the UK market, which represents an important part of the group’s strategic business growth ambitions. The acquisition of these BP assets further demonstrates the company’s ongoing commitment to investing in and growing their businesses within the United Kingdom.
“Essar will continue to play a key role in keeping Britain on the move. It currently supplies over 16% of the UK’s road transport fuel demand and this agreement will enable us to improve our competitiveness. In a rapidly changing landscape, it is critically important we stay competitive through constant business development and innovation.
“The acquisition will allow Essar to maintain its presence in a very competitive UK Midlands region and grow that current footprint. In addition, we will continue to expand our retail offering – with a number of the 12 new stations we recently branded through an agreement with MPK being supplied from the two terminals.”