Update 2-Puma Vitality Buys UK’s Milford Haven Refinery Site For Oil Storage

LONDON, March thirteen (Reuters) – The shuttered Milford Haven oil refinery in Wales will likely be turned right into a storage site by Puma Energy, because the firm co-owned by Swiss commodity large Trafigura and Angola’s state oil firm seems to be to capitalise on Britain’s rising want for gas imports.

oil cracking tower

Puma Vitality purchased the plant and three inland storage terminals from Murphy Oil as the U.S.-primarily based agency winds down its UK subsidiary, Murco, after affected by weak demand and rising international competition from newer refineries.

The raft of refinery closures in Britain in recent times has left it more and more reliant on shipping in fuel from overseas, with web imports of petroleum merchandise tripling final 12 months. That’s creating opportunities for storage and distribution corporations.

Puma) will make Milford Haven a key site securing the provision of energy to the UK and wider area throughout a period of change in European energy infrastructure,Puma said on Friday.

A deal to keep the 130,000 barrels per day plant operating as a refinery collapsed in November, putting 450 jobs in danger.

Puma stated it could welcome “all the terminal and distribution employees

The acquisition, the phrases of which was not disclosed, is Puma’s first foray into Britain and gives it entry to a deep-water port on Walessouthwest coast.

It should boost Puma’s global oil storage capability by round 25 percent to 7 million cubic metres, the equal of roughly forty four million barrels of oil.

The agency has been expanding from its roots as a gasoline storage and distribution firm targeted largely on Latin America and Africa. On Friday, Puma also bought BP Plc’s Australian bitumen enterprise, including to other operations it now has in Norway, Spain, and Estonia.

Main shareholder Trafigura decreased its stake in Puma to 49 percent two years ago, while Angola’s state-owned oil firm Sonangol increased its share to 30 p.c.

Puma can be part-owned by Cochan Holdings, a agency founded by Leopoldino Fragoso do Nascimento, a one-time military common close to Angolan president Jose Eduardo dos Santos.

Power Security AND IMPORTS

Storage and distribution firms have grown as power majors corresponding to Shell and BP streamlined their operations, with rising prices forcing them to concentrate on manufacturing projects even before the value of oil collapsed at the top of last 12 months.

The European refining sector has been notably onerous hit, with gradual economic development curbing oil demand, whereas extra trendy plants in the Middle East and Asia have increased competition.

UK refineries have especially suffered, with restricted state assist available.

The latest figures from the UKPIA refining trade group showed Britain imported practically 50 % of the diesel and 55 p.c of the jet gas it needs. That places it above the “high-riskenergy security threshold of 45 percent designated by the West’s energy watchdog, the Worldwide Vitality Agency.

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