Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
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WWW. PETR OLWORLD .COM Issue 3 2016 FeatureS Fuel Retail Revolution in Mexico New Brand Players in Mexico Gulf Fuel Retail International Update 1st Fuel Retail Expo in Kuala Lumpur 2017 PW Latin America 2017 Update INFORMING AND SERVING THE FUEL INDUSTRY GLOBALLY
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2 + CONTENTS 06 The Mexican Fuel Retail Revolution SECTION 1: FEATURES 04 World View Key stories from around the world 06 The Mexican Fuel Retail Revolution 12 New Fuel Retail Brands in Mexico 14 Gulf Fuel Retail Update – International Developments SECTION 2: NEWS OIL COMPANY AND RETAIL BRAND NEWS 16 Latin america 21 Africa 24 MIDDLE EAST 27 EUROPE 31 North AMERICA 35 ASIA 40 PW Malaysia News SECTION 3: PRODUCTS & SUPPLIERS 42 PRODUCT AND SUPPLIER NEWS 48 Case Study: Brenntag GmbH Berlin Fuel Terminal SECTION 4: INDUSTRY INFORMATION 50 PEtrolWorld Team 51 PEOPLE ON THE MOVE 52 NEXT ISSUE 4 – Outlook for 2017 PetrolWorld Magazine online 12 New Fuel Retail Brands in Mexico www.petrolworld.NET 14 Gulf Fuel Retail Update – International Developments PETROLWORLD Issue 3 2016
3 + CONTACTS + EDITOR'S LETTER International Editor David Egan Contributors Bob Orr Daniel Seegers Paul Standard Karina Swette Sergio de la Vega Art Director Anja Coyne Welcome to Issue 3 of 2016! Advertising Enquiries advertising@petrolworld.com Asia and Latin America feature prominently in this issue. brian.kearns@petrolworld.com Our main feature is Mexico. The first part ‘The Mexican Fuel Retail Revolution’ is a contribution from Oliver Wyman on Accounts Enquiries page 6. The feature is a basic overview and introduction to Dorota.Chojecka@petrolworld.com what has been happening in that country. As a result of the changes taking place in Mexico, the second part of our feature Subscriptions on page 12 highlights some of the new players including Gulf sally.smith@petrolworld.com Mexico, likely to be the first international fuel retail brand to or subscriptions@petrolworld.com appear on the high street. Press Release / Editorial The third part of our feature page 14 is an global update on pr@petrolworld.com Gulf Oil International, responsible for the Gulf brand entering or newsdesk@petrolworld.com Mexico as well as the first Gulf fuel retail branded service station in the Philippines (October 2016). Print Walsh Colour Print, Ireland The Mexican fuel retail revolution is just one part of a major transformation-taking place in Latin America. The PetrolWorld Latin America Conference and Business Forum 2017 will be held in Panama next September 2017. Sponsors will be announced in the next quarter. Published quarterly (four times a year) both the PetrolWorld The PetrolWorld Daily News Service has been overrun with Magazine and the C-STORE executive Magazine, including news in the last quarter. Check out the news index of each their Supplements, are circulated to all key purchasing decision makers within the fuel value chain from Logistics continent for Africa, Asia, Europe, Middle East, Latin America (distribution), through retail marketing to C-Store/G-Store and North America. across the globe. Additionally the vast majority of key personnel within companies supplying to these retail brands are recipients. With the 1st Fuel Retail Expo taking place in Kuala Lumpur All material © 2016. No part of these publications or any other next June 2017, we have added a Malaysian fuel retail news PetrolWorld material may be reproduced, stored in a retrieval page to the Asian news section in this issue on page 40. Watch system or transmitted in any form or by any means without the prior written consent of the Publisher. Opinions and comments out for a number of key announcements from PetrolWorld expressed herein are not necessarily those of the Publisher. All over the coming quarter. rates are correct at time of going to print but are subject to change. Whilst every effort has been made to ensure that all information contained in these publications is factual and correct at time of Enjoy the issue! going to press, PetrolWorld cannot be held responsible for any inadvertent errors or omissions contained herein. David Egan International Editor Published by: PetrolWorld A Date for Your 2017 Diary Fuel Retail Expo 2017 20th – 21st June, Kuala Lumpur David Egan Associates SW Wincentego 112/204, 03-219 The new international platform for Fuel Warsaw, Retail, Handling & Distribution in Asia Poland Issue 3 2016 PETROLWORLD
4 Section 1 Feature > World View World View Snapshot stories from around the world Esso Celebrates Technology Partnership with McLaren Honda F1 legends in a wheel-to-wheel karting race, bringing grassroots racing directly to fans. Jenson Button, 2009 Formula One™ World Champion and current McLaren Honda driver, said, “Karting has been such a huge part of my life from a very young age and my Formula One career would not have been the same without it. Being part of Esso’s Fuel Your Senses: Race of Legends experience took me back to those days and gives fans just a taste of how exciting karting is and its place in developing young talent.” Bruce Crawley, Motorsport Technology Manager at Esso, added that “Karting represents the grassroots and lifeblood of Motorsports and Esso is there at the heart of your automotive experience. As such, so we’re very excited to celebrate our Technology Partnership with the McLaren Honda team by bringing the excitement of motorsports, from karting right up to Grand Prix racing, directly to our fans with this thrilling 360° VR experience.” Fans can visit www.esso.co.uk/fuelyoursenses EssoTM has created an innovative new team. Building on the success of the 2015 to experience the race for themselves on Virtual Reality (VR) race experience to #FuelYourSenses campaign, this latest their desktop or mobile device. celebrate its Technology Partnership immersive VR experience, available via with the McLaren Honda Formula 1™ the Esso website, features five Grand Prix PETROLWORLD 250816 PetrolWorld to reopen Rep Office in Kuala Lumpur PetrolWorld has announced the reopening of a PW Representative office in Kuala Lumpur from October 2016. PetrolWorld has been active in Asia since 1997 and had previously operated with local partners to maintain a representative office from 1998 up to 2010. This was mainly connected with “Business Forums” organized by PetrolWorld for Asia. A new PetrolWorld schedule for Asia is expected to be announced in October and will coincide with the opening of the new rep office in down town Kuala Lumpur, Malaysia. PETROLWORLD 160816 PETROLWORLD Issue 3 2016
Feature > World View Section 1 5 COPEC of Chile Enters USA Market Compania de Petroleo de Chile (COPEC) has entered into a definitive agreement with Delek US Holdings to which Delek will sell MAPCO Express, Inc., and certain related affiliated companies, to a U.S. subsidiary of COPEC for total cash consideration of $535 million plus MAPCO’s cash on hand at closing. This transaction is subject to customary closing conditions and is expected to close by the end of the 2017. This transaction creates an exciting opportunity for MAPCO and its employees as it becomes a key component of COPEC’s U.S. growth strategy. Delek also gains a partner in retail fuel sales and will continue to supply locations through its wholesale business and space on the Colonial market share with 626 company and assets are located in a geographic Pipeline system. dealer operated service stations, 82 zone with interesting demographic Pronto-branded convenience stores and attributes and with the size for a COPEC is one of the largest companies 220 Punto-branded convenience stores. proper competitive operation in the US in Chile, operating in fuel and lubricants market. After buying into the control of distribution and convenience stores. Lorenzo Gamuri, CEO of COPEC, said Organización Terpel in 2010, this is the COPEC has an existing presence in the “The acquisition of MAPCO represents second significant step to transform convenience stores with the largest an important step for COPEC’s entry Copec into a broader company in the fuel convenience store network in Chile and into the U.S. convenience store market, retail and convenience store market.” approximately 53% of Chilean gasoline which has been identified as a key strategic growth opportunity. MAPCO’s PETROLWORLD 290816 Maxol Ireland Rewards Company’s Top Performing Retailers Maxol Ireland has recognised its top- performing retailers from across Ireland at a special awards ceremony, TLC Retail Awards, which took place in Belfast City Centre on Friday 19th August. Belfast was the chosen destination to hold the award winners’ celebratory evening, where the group of 39 Maxol retailers, partners and management were treated to a luxury stay in the 4 star Malmaison Hotel. The event also featured a private “Dine around Deanes” restaurant tour of each of the Deanes restaurants by Ireland’s longest-standing Michelin star holder for 12 years, Michael Deane. Commenting on the night, Maxol CEO Brian Donaldson said: “Congratulations service. They are each a prime example business, we look forward to the TLC to all of our winners who have worked of excellence in retail and it is wonderful awards and prize distribution every year tirelessly throughout the year to to get to reward them in this way. As a and this year was no exception.” provide our customers with the very company who understands the importance best standards of customer care and of putting employees at the heart of the PETROLWORLD 0816 Issue 3 2016 PETROLWORLD
6 Section 1 Feature > The Mexican Fuel Retail Revolution COVER STORY The Mexican Fuel Retail Revolution PetrolWorld has been following the petroleum downstream reform in Mexico for a number of years and this process has escalated in the last 12 months. A special report was prepared by Bob Orr and Karina Swette from Oliver Wyman in Houston and I am delighted to publish the key elements of the report here. It is a great introduction to the process taking place in Mexico. As Mexico deregulates its oil industry, it that significant structural changes in than in the US, and convenience store is opening the largest fuels marketing the downstream fuels sector will create penetration is low, at roughly 50 percent of and retail opportunity on the horizon. high-value opportunities for companies fuel stations. Oliver Wyman estimates willing to commit to the Mexican market that by the turn of the decade, the For the first time, foreign companies and work through market evolution number of fuel sites could grow by will be allowed to own fuels assets, and challenges. more than 40 percent. companies can sell fuel branded and sold by suppliers other than Pemex. Mexican fuel consumption is forecast Fuels marketers and retailers should The downstream will open to new fuels to grow by roughly 3 percent annually, pay attention to Mexico. It is the sixth- marketers and new retail fuels offerings, a rate twice that of global demand largest consumer of motor gasoline changing the market landscape and the growth and at a higher rate than the and diesel and one of the final value distribution among participants. top five fuel-consuming countries. developing markets to deregulate, Fuel site throughputs are 30 percent allowing foreign companies to import, While most deregulation talk focuses higher than other mature markets, own assets, and sell other fuel on upstream, Oliver Wyman forecasts fuel prices are 20 percent higher brands. PETROLWORLD Issue 3 2016
Feature > The Mexican Fuel Retail Revolution Section 1 7 AdBlue® Light Vehicle Refilling NEW ATTRACTIVE FUELS MARKET DYNAMICS AND STRUCTURE The Mexican downstream Attractive fuels market fuels market should be very dynamics attractive Growing to newcomers market with and highlocal level ZVA participants and alike, driven by key fundamentals. of imports structure • Strong growing consumption and increasing imports The Mexican downstream fuels market Mexicans consume more than 750,000 AdBlue LV • High fuels site volumes should be very attractive to newcomers barrels of gasoline per day, ranking the • Price and levels and structure localparticipants alike,that couldbycreate driven key substantial country margin sixth in global market demand. fundamentals. • Fragmented wholesale and retail markets structure Such demand growth will likely lead •• Strong Limitedgrowing consumer consumption andnew entrants choice, allowing to an increasing to bring reliance on imports. new offers increasing imports With oil prices in the US dropping, US Due to the new EURO 6 standard most refiners that have access to cheap crude diesel passenger cars and vans < 3,5 t •GROWING High fuels siteMARKET volumes WITH HIGH LEVEL OF IMPORTS will continue to increase fuels exports, ( 'light vehicles' ) are designed to be • Price levels and structure that could and Mexico is their closest and largest refilled with AdBlue® urea solution. Mexicans consume more create substantial than 750,000 barrels of gasoline per day, ranking the country sixth margin import market. Imports already account •inFragmented global market demand. Such demand growth will wholesale and retail mar- forlikely lead to an 48 percent ofincreasing reliance Mexican fuel on consump- Elaflex is now providing the new imports. With oil kets structure prices in the US dropping, US refiners tion, that have and Oliver access Wyman to cheap crude forecasts will that nozzle type ZVA AdBlue LV : continue to increase fuels exports, and Mexico is their will closest rise toand as largestas much import 60 market. of percent • integrated misfilling prevention • Limited consumer choice, allowing Imports already account for 48 percent of Mexicantotal fuel consumption, consumptionand by Oliver 2020. Wyman for ISO 22241-5 filling points new entrants to bring new offers forecasts that will rise to as much as 60 percent of total consumption by 2020. • flowrate up to 10 l/min Mexico domestic gasoline consumption and imports • no dripping when removing nozzle Exhibit 1: Mexico domestic gasoline consumption and imports from fill point THOUSANDS OF BARRELS PER DAY, 2004–2020 • easy handling similar to other 1,200 ZVA nozzles Projection • fulfills technical requirements Total consumption of EN 13012 and ISO 22241 • ATEX approved for use in MPD 2.2% CAGR dispensers 600 Total imports • prevents unnecessary waste of 60% single-use bottles and containers 48% 9.2% CAGR AdBlue® is a registered trademark of VDA. 0 2004 2006 2008 2010 2012 2014 2016 2018 2020 Sources: Pemex, EIA, and Oliver Wyman Analysis ELAFLEX HIBY Tanktechnik GmbH & Co. KG Tel. +49 (40) 540 00 50 · Fax +49 (40) 540 00 67 Sources: Pemex, EIA, and Oliver Wyman Analysis info@elafl ex.de · www.elafl ex.de/en Issue 3 2016 PETROLWORLD Ad_2016_ZVAAdBlueLV_58x256mm.indd 1 26.08.2016 12:01:14 Copyright © 2015 Oliver Wyman 3
station, 50 percent higher than the average for neighboring US regions, creating attractive site-level economics. In addition, several of these Mexican regional markets must use 8imported fuels Section products Feature 1 exclusively, > The Mexican compounding the tensionFuel Retail Revolution in supply-demand dynamics and driving a potential structural change. Average annual consumption per region of Mexico and throughput Mexican government was subsidizing Exhibit 2: Average annual consumption per region of Mexico and throughput fuel prices. However, that has reversed in MILLIONS OF LITERS, 2013, INCLUDING GASOLINE AND DIESEL recent years. In April 2012, gasoline prices in the US averaged $3.84 per gallon while the equivalent gallon of Pemex Magna in Mexico was $2.64. That’s a $1.19 differ- Mexico: 5.0 ence. But with recent global crude prices Germany: 4.5 dropping, the price per gallon in the US has declined to $2.59, on average, while Chile: 4.5 US: 3.3 the pump price in Mexico has reached 6.0 5.9 $3.11. That’s 20 percent higher and creates arbitrage opportunities in certain regions. 4.4 4.2 3.8 UK: 2.0 Italy: 1.6 Fragmented market with a lack of consumer choice Northeast Central South/ Northwest Central/ southeast west With only Pemex branded fuel and 25% 24% 18% 17% 16% stations allowed in Mexico, the competition and investment has been Percent total volume in Mexico much more limited than in other Note: UK excludes supermarkets in average Note: UK excludes supermarkets in average markets. This has left the consumer Sources: Country government reports, Oliver Wyman analysis Sources: Country government reports, Oliver Wyman analysis offer relatively weak, as evidenced by the low penetration and variety of PRICING OPPORTUNITY High fuels site volumes station, 50 percent higher than the aver- convenience stores. Only half of Mexican age for neighboring US regions, creating stations have convenience stores The number of retail fuels stations in attractive site-level economics. In addi- compared The Mexican government sets fuel prices and has steadily increased prices Mexico is controlled by the government overwith around 80 percent in time. tion, several of these Mexican regional other markets. Historically, and stands at just thisover meant 10,000that sites.the Mexican marketsgovernment must use imported wasfuels subsidizing fuel prices. However, As demand has increased without a products exclusively, compounding the that has reversed in recent years. Intension parallel growth in the number of sta- April in2012, gasoline prices in the US supply-demand dynamics and averaged Mexico $3.84 is a highly fragmented fuels per gallonMexico while now hasthe oneequivalent of the highestgallon of Pemex Magna in Mexico market. More than 5,000 franchisees tions, driving a potential structural change. was $2.64. That’s a $1.19 average volume throughputs per station operate only one or two sites, making difference. But with recent global crude prices dropping, the price perorganic in the region and globally, at 5 million gallonimprovement in the US has in offerings declined liters to $2.59, per station. Moreover, on average, Pricing opportunity the aver- while the pump price in Mexico has reached $3.11. That’s fewer non-fuelchallenging. There are age throughputs within larger Mexican services than in similar markets, and 20 percent higher andMexicocreates arbitrage The Mexican government sets opportunities fuel prices in certain regions. many facilities lack the cleanliness and regional markets, including and has steadily increased prices over City, are more than 6 million liters per security desired by customers. Even the time. Historically, this meant that the Copyright © 2015 Oliver Wyman 4 Comparison Exhibit of gasoline prices 3: Comparison of gasoline prices INDEXED, 2005–2015 (2005 = 100) 300 53 cents-per-gallon price premium 250 200 Pemex Magna gasoline 150 US regular conventional retail gasoline 100 price 119 cents-per-gallon price savings Cushing, OK WTI 50 spot price FOB Jan Jul Jan Jul Jan Jul Jan Jul 2005 2006 2008 2009 2011 2012 2014 2015 Sources: Pemex Magna unleaded (regular), Energy Information Administration; Oliver Wyman analysis Sources: Pemex Magna unleaded (regular), Energy Information Administration; Oliver Wyman analysis PETROLWORLD Issue 3 2016
Issue 3 2016
investment has been much more limited than in other markets. This has left the consumer offer relatively weak, as evidenced by the low penetration and variety of convenience stores. 10 Only half ofSection Feature Mexican1stations have > The convenience Mexican stores Fuel Retail Revolution compared with around 80 percent in other markets. Convenience store penetration in gas stations fuels market represents a once-in-a- Exhibit 4: Convenience store penetration in gas stations generation opportunity for bold strategies NUMBER OF STATIONS WITH CONVENIENCE STORES to shape the market and for companies with strong fuels capabilities, offers, and 5% the desire to grow value. 18% 20% 45% 35% Strategic considerations for mexican fuels market participation 95% 82% 80% Without When considering whether to participate 65% convenience in the deregulated Mexican downstream store6.0 55% market, companies should ask themselves several critical questions. With convenience 0% store How much in refined products am Mexico US Germany UK Poland I exporting today that already ends up in Mexico (or other parts of Latin Sources: CBRE – Market View European Petroleum Retail Sector, US Census Bureau; Oliver Wyman analysis Sources: CBRE – Market View European Petroleum Retail Sector, US Census Bureau; Oliver Wyman analysis America)? Will those exports be sustained or grow? largest franchisees operate fewer than how and when permits will be awarded, How could I take better advantage of 300 stations, making scale operations a if foreign companies will be allowed to my products that already flow from the challenge. buy existing assets, or how the number Gulf of Mexico, the West Coast, or over of retail stores will be regulated. the border into northern Mexico? Further, it is not clear how regulators But that has not restricted the How much would I benefit from securing will determine fuel prices during the development of grass-roots efforts to future product placement and capturing transition period or how prices will meet consumer demand. The largest more value in the fuels chain? change. It is essential for participants franchisees have developed their own and investors to stay closely connected In what part of the value chain can offers including loyalty programs, fleet to changes and build flexible strategies. my offer, capabilities, and assets cards, and fresh food offerings, proof that the Mexican consumer is looking for differentiate themselves and create expanded choices. Participation options value, given the level of Mexico market development? Opportunities open with regulatory Companies can pursue a range of Should I invest in new assets or create changes options to participate in the downstream partnerships to secure supply and fuels market in Mexico, from full placement? ownership and operation of assets What are my current relationships? How Deregulation laws were passed in 2013 within key segments of the value chain, should I work with local partners? Pemex? and 2014, and Mexican regulators are to partnerships and joint ventures, to Government agencies? Franchisees? implementing plans to relax control of the strong, brand-based sales agreements. Other oil and gas 6 companies? market in the next few years, impacting all Copyright © 2015 Oliver Wyman areas of the energy value chain. What parts of my retail offering will fulfill Market dynamics will continue to evolve, the needs of Mexican consumers, and how with consolidation of current players should I adapt? For downstream activities, the law and new sites and concepts from establishes a permit regime regulated How do I prepare for the theft that market entrants. Existing local fuels by the Ministry of Energy (SENER) for continue to increase in several parts of the and convenience retailers will continue petroleum treatment and refining and value chain? to grow and consolidate, with larger the import and export of petroleum companies speeding up the pace of How much am I willing to invest? What is products. The Energy Regulatory buying smaller operators. Entrants and my risk tolerance? What am I leaving on Commission (CRE) provides permits local participants will build new fuels the table if I don’t participate? for crude oil, petroleum products, and sites and probably test hypermarket and petrochemicals, transportation, storage, How do I build flexibility into my strategy grocery fueling offers. distribution, compression, liquefaction, as regulations evolve? decompression, regasification, marketing and retail sale of crude oil, A range of foreign refiners, fuels petroleum products and petrochemicals, distributors, marketers, and retailers PetrolWorld would like to thank along with integrated pipeline will build and buy stores, and form Oliver Wyman for their permission transportation and storage systems. partnerships, bringing new consumer to reproduce the key elements of offerings in fuel and convenience. their report here and of course Investing in the Mexican fuels market the Authors Bob Orr, Partner and comes with risk. Several details about Given the regulatory changes and Karina Swette, Principal. the regulations are not clear, such as attractive market dynamics, the Mexican PETROLWORLD Issue 3 2016
PW Section 1 011 PetrolWorld Conference y Foro de Negocios para Latinoamerica 2017 Panamá del 19 al 20 de Septiembre 2017 El Mercado de venta directa de combustible en Latinoamérica está evolucionando hacia una posición clave internacionalmente. Esto se puede ver claramente en América Central, donde se ha producido un cambio y un desarrollo dramático de marcas de combustible así como en la cadena de suministro de combustible. PetrolWorld aspira a crear un Puente de las Américas al llevar a cabo su primer evento para Latinoamérica cerca del así llamado Puente de las Américas, en la Ciudad de Panamá. Si está interesado en este evento, puede registrarse en www.petrolworldamerica.com www.petrolworldamerica.com
12 Section 1 Feature > New Fuel Retail Brands in Mexico COVER STORY New Fuel Retail Brands in Mexico PetrolWorld Global Daily News Service New Players Local & International Mexico. Sergio de la Vega, Gulf’s director has been following the process of for Mexico speaking to PetrolWorld, change in the fuel retail and distribution There are a number of key local players. stated that it is looking to operate at market of Mexico. There has been These include Cantelli in South Mexico, least 100 sites over the next year. The 92 news items since January 2015 Corpo Gas, Eco Gasolineras, Gasmart company aspires to reach 2,000 sites by published. convenience retail, Hidrosina in Mexico 2020. De la Vega said Gulf has a target of City, Oxxo Fuel & Convenience retail, 25 percent of the national market, which In February of this year, the Mexican Petro 7 and the first international fuel currently comprises more than 10,715+ Government brought forward the brand “Gulf”. fuel service stations across Mexico. The 2017 import of fuels to April 2016. company intends “to give Mexicans a As a result of this move, a key feature choice,” de la Vega said. has been the element of new players Gulf Oil Mexico – First International Brand both local and international. Many of Until now all fuel service stations in the these new players have been using Gulf Oil is currently opening its first country have been franchises of state- PetrolWorld Twitter! branded fuel retail service stations in owned oil company Petroleos Mexicanos, PETROLWORLD Issue 3 2016
Feature >New Fuel Retail Brands in Mexico Section 1 13 better known as Pemex. Mexican fuel service stations sell fuel at a fixed price, and Gulf will be subject to the same system. However, officials have said that in the future they will allow prices at the pump to vary according to market forces as part of the reform process within fuel retail. PetrolWorld will have photographs and an update on the first Gulf Branded fuel service station in Mexico in our next Issue 4 “Outlook for 2017”. The Mexican government is looking to accelerate the opening of the fuel retail market in an attempt to encourage investment. Mexican Association of Fuel Retailers According to the Mexican Association of Fuel Retailers AC (Asociación Mexicana de Empresarios Gasolineros A.C.), there are 10,715 fuel service stations in Mexico. Currently they all work as Pemex franchises and display the same green image, but also promote the brand owner of the franchise group. In December 2015, an alliance was announced through a statement, consisting of eight fuel groups that altogether own 10 per cent of the network sites in the country with a total of 1,265 stations. These are Hidrosina, Corpogas, Lodemo, Esges, Enerkom, Octan Fuel, Gasored and Cargo. These companies announced they will work together with Pemex and will begin to offer additional ancillary services. It is understood by PetrolWorld that the new partnership emerged to compete with the G500 group that brought together more than 763 dealer fuel service stations. Antonio Caballero, President of G500, said the company’s objective is to grow the current network of 763 fuel service stations to 1,000 sites during 2016. He also stated that they intend to develop bulk fuel storage and distribution of fuel products. It is understood by PetrolWorld that there are a further 200 sites waiting for approval. PetrolWorld is following the Mexican fuel retail and distribution market Gulf Oil Deal with Aguri Formula E Team closely. PetrolWorld will hold the first international Fuel Retail Conference Gulf Oil International has struck a deal with the Aguri Formula E team to bring and Business Meeting Forum for Latin one of the most iconic racing liveries to the all-electric racing series. Gulf will America in Panama next September. be the team’s title sponsor for the rest of this season. Both team drivers,Antonio Felix da Costa and Salvador Duran will run the new-look cars. Website: www.petrolworldamerica.com Issue 3 2016 PETROLWORLD
14 Section 1 Feature > Gulf Fuel Retail Update COVER STORY Gulf Fuel Retail Update – International Developments Gulf’s fuel retail has continued to grow the Philippines several sites for new present in 19 countries and plans to throughout 2016 with new fuel retail stations have been identified. open networks in 6 new countries are licensees being appointed in Mexico with imminent. Gulf wishes to find new fuel Philippines and South Africa, the latter The 1st Gulf station inauguration is retail partners around the world and two appointments also milestones for Gulf planned for the 11th and 12th October 2016 invites enquiries for the brand use on as the 1st networks in Africa and S.E. Asia. and will also have a shop, Gulf Express* service stations. and service centre. In South Africa the first station plans Another important development is that are being drawn up and update news *Gulf Express is a new quick lube Gulf has recently signed a Trade Mark will be published on PetrolWorld. In service concept currently being rolled agreement with Zenrin USA, Inc. which out in several countries to provide develops original satellite navigation vehicle owners with fast oil change, products for the automotive and basic servicing and valeting while u wait smartphone navigation app markets. in the Customer reception with access This will mean that from the end of to refreshments, Wi-Fi etc. 2016 the Gulf logo will start showing on the dashboard Sat Nav’s of many major Gulf has ambitious plans to grow the motor vehicle brands the location of network in 60 countries by 2020. Gulf Gulf service stations in countries where fuel retail networks are actually now Gulf stations are present. PETROLWORLD Issue 3 2016
Feature >Gulf Fuel Retail Update Section 1 15 The sponsorships enable Gulf fuel retail network operators to leverage sales the activations which include taking customers/owners to major sporting events and VIP packages , incentivising staff and running competitions for general public to also win tickets or merchandise linked to the sponsorships Gulf fuel retailers also have access to Gulf Oil International has selling a wide range Gulf lubricants via signed major sponsorship forecourts or workshops either with standard packs or special packs linked deals with Manchester United to the sponsorships. Football Club World Endurance Champion- ship Gulf Racing entering a Porsche 911 RSR GTE Please send your enquiries re Gulf Fuel Retail, Gulf Express, A new long-term technical lubricants to Paul Stannard, partnership with the Business Development Manager Gulf Oil International UK Ltd Milwaukee BMW World ps@gulfoilltd.com Superbike Team www.gulfoilltd.com PetroPoint - the automatic vehicle recognition system. Trouble-free fuelling operations guaranteed. Automate your fuelling processes with the help of PetroPoint automatic vehicle recognition and profit by providing superior customer service, security and a high throughput rate of vehicles. PetroPoint can be easily fitted to almost every vehicle. Whether bus companies, public transport operations, shipping companies or vehicle fleet operators from all branches of industry – all of them profit from PetroPoint! Hectronic GmbH Allmendstrasse 15 79848 Bonndorf, Germany Phone: +49 (0) 77 03 - 93 88 0 Fax: +49 (0) 77 03 - 93 88 60 mail@hectronic.com www.hectronic.com A Must-have! Issue 3 2016 PETROLWORLD PetrolWorld Q3_Hectronic artwork.indd 1 29.07.2016 09:44:37
16 Section 2 Oil Company Retail Brand News > Latin America: News & Updates LATIN AMERICA NEW PW LATINOAMERICO NOTICIAS AVAILABLE NOW News Index: Further information details of Argentina Ricardo Darre Appointed as New YPF the business forum event are CEO now available on the dedicated Petrobras Argentina Terminates Chile forum website: Natural Gas Supply Agreement www.petrolworldamerica.com Conosur To Be Acquired by GMM Group PDVSA vende Conosur SA Pampa Energy Buys Petrobras Shares Biodiesel Portal Celebrates 10 years Bahamas Call to Bypass Fuel and Buy Natural Gas from America Bermuda Rubis Hosting Free Fuel For Life Promotion Rubis Host Warwick 5k Family Fun Run RUBiS Promotion Winner Announced Jamaica Trinidad & Tobago Brazil Jamaica Refinery Upgrade Remains in Independent Fuel Retail Dealers Petrobras new CEO and Executive Limbo Highlight Problems Officers Pedro Parente takes office as Petrobras Mexico Virgin Islands CEO Fuel Retail Deregulation & International A Year Of Free Petrol From SOL Cosan Expands Zip Lube Network Investors - Update Ipiranga Acquires ALE Other La Gas New Independent Fuel Brand Ipiranga adquiere ALE Nota del Editor para Latinoamérica Pemex New Fuel Distribution Brand Petrobras LNG Auction Process Editors Note for Latin America Scheme Copesucar & Eco Energy Joint Biofuel Petrobras Appoints New Strategy Chief Perc introduce franquicia de venta de Investment combustibles Eletrobras’ Debt Continues With Perc Launches Fuel Retail Franchise Petrobras Hidrosina To Promote Mobile Payments Petrobas Privatized Confined to Pemex Sells Non Strategic Fuel Sites Downstream? Oxxo Stores Temporary Close in Oaxaca Sale of BR Distribuidora to be Restarted BP Considers Mexico Fuel Retail Market More Details on Sale of Petrobras Oxxo Enter Private Fuel Market Distribuidora BR Various New Pemex Appointments Más detalles sobre la venta de Petrobras Pemex Increase Workers Pay Distribuidora BR Alternative Fuels Are Minimal Petrobas Resets Terms for Br Femsa Publishes Strong Q2 Results Distribuidora Sale - UPDATE Another New Downstream Partnership Ultrapar To Start Lubricants Business Formed Profit Fall For Petrobras Mexico To Improve Fuel Quality Standards Chile PROFECO Highlights Need for Stronger Chile introduce Ley sobre etiquetación W&M Regulation Sale of Petrobras Chile Agreement CRE Fuel Reform Standards Signed Costco to Enter Fuel Retail Market Acuerdo de Venta de Petrobras Chile Big John Acquisition In Final Stage Nicaragua COPEC to Acquire MAPCO Express in Puma Energy Informa Al Incidente USA Puerto Sandino Puma Energy Update on Puerto Sandino Colombia Biomax Fuel Retail & Distribution Paraguay Biomax Biocombustibles y Estacio de Petromax abrirá 30 nuevas estaciones Servicio de servicio en 2016 Ecopetrol Reveals Minority Petromax To Open 30 New Fuel Service Shareholders’ Agreement Stations in 2016 Ecopetrol Suffers Q2 Fall Petrobras First Solar Energy Fuel Retail Service Station Dominican Republic Petropar Fuel Retail Promotion Plans To Eliminate Fuel Subsidies PETROLWORLD Issue 3 2016
Oil Company Retail Brand News > Latin America: News & Updates Section 2 17 Argentina: Puma Energy 1st Fuel Retail site In Rosario First Puma fuel service station in Rosario will open in November. Puma Energy is investing three million dollars on its first fuel service station in Rosario. Company claims it is their most ambitious project in the country and will commence operations from November. All fuels under the brand will be sold. The site is located on land in Av. Circunvalación and President Peron, one of the busiest entrances of the city. Distinct from the usual stores and service stations overhanging the commercial offer and the design version, this site will host a “7th Street Café”, an adapted version of an Australian business model. In addition, it will have service areas and inside food services will include the Subway franchise. to have 2,700 outlets in 49 countries. Rosario is a key city in Established in the country in 1920, the Puma brand then the Province of Santa Fe, Argentina. It is 330klms north west merged with two other companies, marked its presence under of Buenos Aires. the name of EG3. In 1997, the brand name and oil company was acquired by the Trafigura Group and has since expanded PETROLWORLD 01082016 Brazil: Petrobras is rewriting the terms Administrativo de Defesa Economica.’ stations, 8 distribution terminals, and conditions for the sale of its fuel One of the major recommendation is aviation fuel operations at 11 airports, distribution unit. to find a partner that would share the stakes in 2 logistics companies, and 1 control of BR Distribuidora through lubricant plant. Petrobas expects to complete the sale of split ownership. Petrobras would now its fuel distribution and marketing unit be trying to hold only 49% of the voting The Southern Cross Group is a private know as the Petrobras Distribuidora S.A. capital of the distribution unit. equity firm founded in 1998, with US$2.9 (BR Distribuidora) by early 2017. The billion of assets under management, planned divestment is part of Petrobras’ PETROLWORLD 04082016 which focuses on investments in Latin plan to sell USD 15 billion of assets by the America, in companies in the industrial, end of this year, to reduce its debt burden, Sale of Petrobras Chile Agreement Signed service, logistics and consumer goods which is estimated to be USD 130 billion, sectors. in the first quarter of 2016. The company Petrobras has announced that it has had to reject three offers as they were signed a sale and purchase agreement As reported by PetrolWorld, this nowhere near the company’s expectations. with the Southern Cross Group for 100% transaction, carried out through of Petrobras Chile Distribuición Ltd. (PCD), a competitive bid process, is an Petrobas is planning to sell only a held through Petrobras Caribe Ltda. important part of Petrobras’ 2015-2016 minority stakes in its distribution unit. Disposal Plan. As the buyers showed lesser interest The estimated cash inflow from the in buying minority stakes, the company deal is US$464 million, divided as PETROLWORLD 220716 had to revise the terms and conditions follows: US$88 million arising from the for the sale. It would be changing from distribution of surplus cash before the Dominican Republic: Plans To Eliminate the current competitive bidding process. transaction closed; US$367 million to Fuel Subsidies The state owned BR Distribuidora has be paid by Southern Cross on the day of closing; and a price adjustment payment Society Enterprises of Fuel and Derivatives a major hand in Brazilian fuel retail of US$9 million, to be made within 65 (SEC) proposed the elimination of oil market with over 7500 fuel service working days after closing. subsidies, due to market distortions stations across the nation. that have been causing irregular fuel Now the company expects to receive The deal’s completion is expected to marketing, tax-exempt distribution and bidding offers by November or take three to four months, subject to detriment of standards for consumers. December, 2016 and hope to confirm the compliance with certain prior conditions, The SEC endorses the recent statements sale in the first quarter of next year. The as established in the agreement and by the Minister of Industry and Trade, sale would become effective only after customary for this kind of operation. José del Castillo, who said that market receiving the approval of the concerned PCD is Petrobras’ fuel distribution conditions have changed and these government body, ‘Cade for Conselho company in Chile. It has 279 fuel service changes represent an opportunity Issue 3 2016 PETROLWORLD
18 Section 2 Oil Company Retail Brand News > Latin America: News & Updates to remove subsidies at a time of low Venezuelan leader’s one-day visit to Costco Fuel Retail through its legal internaitonal oil pricing. Kingston. representative, Patricia Quiles Arteaga, set out their plans for the design, construction, Some union leaders says distribution PETROLWORLD 010716 - Observer operation and maintenance of fuel retail companies and groups like Anadegas service stations retail.”We continue to benefit from the subsidy but not the BP Considers Entry to Mexican expand our fuel retail operations on an people or state. The chairman of the Fuels Market international level ,” says the company’s SEC, Demetrio Almonte said that the financial report presented in 2015 to its fiscal impact of this practice (about four BP has decided to join a number of investors. million gallons per month) is estimated international players who are looking at a loss more than RD $ 2.000 billion every entering the Mexican fuel market. BP The financial analysis explains that year to the Dominican state. is yet to confirm any plans of when and in almost all its new stores in the US where it might enter the Mexican fuels and Canada the opening of fuel retail PETROLWORLD 12082016 market. “BP is analysing all investment sites are part of a key development opportunities in connection with the and strategy plan. In late 2015, the US Jamaica Refinery Upgrade Remains energy reform,” said a BP spokesman. Company had 490 fuel service stations in Limbo Current fuel statistics of Mexico shows operating in USA, Canada and Australia. that it is a net importer of fuel. In May In Mexico, the company has 37 stores. Recent visit by President Maduro of this year, there was 11.1% decrease in Costco is looking to install 27 fuel Venezuela highlights key dilemma on domestic fuel production and import dispensers in the three locations of Petrojam refinery. was up by 24.1% when compared to the Culiacan, San Luis Potosi and Merida. same period in the previous year. Prime Minister Andrew Holness says PETROLWORLD 26082016 Jamaica needs to know within three BP also has its eyes in Mexico’s deepwater months whether Venezuela is prepared auction which is scheduled to be held FEMSA inaugurates its first fuel service to go ahead with upgrading the Petrojam in December, 2016, with another 25 station under the “Oxxo” brand. oil refinery on Marcus Garvey Drive in prequalified companies. Kingston. FEMSA who owns the Oxxo retail PETROLWORLD 07072016 network has opened its first fuel service “If we get our refinery upgraded, then station under the brand ‘Oxxo Gas’, to that will answer the energy questions: Mexico: Costco to Enter Fuel compete mainly with PEMEX, the state It will answer our economic growth Retail Market owned giant. ‘Oxxo Gas’, a subsidiary questions, the competitiveness question. of FEMSA has joined the competition The refinery is critical. It is one of those Costco plan to build and operate in Mexican private fuel retail market critical columns, we believe,” Holness 3 pilot fuel retail service stations by opening up its first fuel service told local media during a one-on-one in Mexico. Costco Fuel Retail have station this week at San Pedro Garza interview at the Office of the Prime submitted applications to the Ministry Garcia in northern Mexico. This site was Minister. of Environment and Natural Resources previously owned by Pemex, the state (Semarnat) as they plan to build and He admitted that the issue was the owned giant who enjoyed monopoly in operate 3 fuel service stations “urban main focus of discussions he had the sector for almost 8 decades. type for fueling with exclusive service to with President N. Maduro during the Costco members.” Femsa/Oxxo has plans to rebrand another 49 Pemex stations this year, mostly around Monterrey, said Rolando Vazquez, Oxxo’s director in his latest interview. ‘Oxxo Gas’ would continue to sell Pemex fuel, even if the stations are to be renamed to its brand, for a while. Later, the company may start to import fuel to some regions, depending on the liberalization that is yet to happen. Mr. Vazquez said “Pemex does not participate much in providing services at gas stations, it just provides the fuel, so this is a major change because now different fuel retail operators will have their own brands and compete for customers” and “We expect to be very competitive because we already have a strong presence in the country, and we are in a strong growth phase right now.” Though the Oxxo branded fuel service station opened is its first own brand station, Oxxo already operates a fuel PETROLWORLD Issue 3 2016
20 Section 2 Oil Company Retail Brand News > Latin America: News & Updates retail network of 335 fuel service stations. PetrolWorld notes that there removal of all subsidies on fuels and stations under the Pemex brand. They was no information on fuel retail deregulation of fuel retail. have plans to gradually rebrand all these sites dispensing ‘over the delivery 335 sites into ‘Oxxo Gas’ stations. They amount’. Fuel dispensers require “However there has been no consultation also eye to expand into Mexico City and regular inspection and checks preferably regarding budgetary proposals,” he said. other important parts in the country. from independent service maintenance “We have written to the government companies. It would be key to learn on several occasions and they have not It was recent fuel reforms that let private how many fuel service stations above consulted with us, they have always said independent fuel dealers including Oxxo had a “fuel dispenser maintenance they are looking into it, I think they are to operate in Mexican fuel market under contract”? aware of our problem but nothing has own brands. They are awaiting further been done, the Minister has not met policy changes which would remove PETROLWORLD 19082016 with us,” he said, and pointed out that price caps within the next 18 months www.profeco.gob.mx Energy Minister, Nicole Olivierre, had not to expand their business by importing met with them since assuming office in fuel by themselves. FEMSA, the parent September 2015. company of Oxxo is one among the Paraguay: Petrobras First Solar Energy leading retail and bottling firm in Mexico Fuel Retail Service Station He also noted that amendments to the has had a fall in its first quarter profits, Petroleum Act were also being sought Petrobras Paraguay has announced the to place the marketing license in the to some extent, due to its expansion in opening and operation of its first solar name of the land owner and not the the fuel retail sector as well. energy fuel service station in Paraguay. operator and pointed out that this would PETROLWORLD 08072016 Celebrating ten years of operation in the also enable NP to get profits on both the country, Petrobra Paraguay announced wholesale and retail sides of the industry Mexico: PROFECO Highlights Need for it snew partner: The Sun! With an as a significant number of dealers were Stronger W&M Regulation investment of approximately $ 100,000 leases and did not own the property on , the fuel servcie station located at which the station was situated. Mexico’s consumer protection body Shopping del Sol Asuncion was chosen PROFECO sees big increase of for the implementation of this innovative PETROLWORLD 300716 complaints concerning refueling at solar energy project. It marks a special service stations. milestone for Petrobras Paraguay. Virgin Islands: A Year Of Free Petrol A Mexican senate commission has PETROLWORLD 180816 From SOL called on consumer protection agency Profeco to issue a report on the number Trinidad & Tobago: Independent Fuel Sol Petroleum announces a promotional of complaints it has received from Retail Dealers Highlight Problems contest that one lucky customer will get consumers of fuel service stations. The the chance to win free fuel for a year. On request came amid an increase of cases Low fuel margins and taxes are a real account of a promotional contest that where fuel service stations have been threat to profitability at fuel retail will run until October 9th 2016 with the caught selling fuel short liters, a crime dealer sites. Grand Prize Draw on October 13th 2016 that carries a prison sentence in Mexico. a Lucky customer who wins the lucky The local Petroleum Dealer Association draw gets a Full year of free fuel from In 2014, nearly four out of 10 fuel service Petroleum Dealers Association of Trinidad the sol petroleum. stations were found to be selling less & Tobago (PDA) president Robindranath fuel than the amount stated on the fuel Naraynsingh, offered that sobering view of For every US$20 spent in Sol Go Further dispenser. Furthermore, among 2,359 the industry during a special meeting held gasoline or diesel at any Sol Service sites inspected by PROFECO in 2013, in Chaguanas last week. Station, consumer receive a Web Card 36% were found to be selling short to enter the promotion.Visit the website measures. Speaking to reporters, he said dealers www.solpetroleum.com/gofurtherbvi fill had “not received a margin increase in your details and enter the code found The senate also called on the attorney since 2005 while subsequent to 2005, on the Web Card for your chance to win general’s office to report on the number there have been increases in minimum up to US$4,000 worth of fuel for the year. of investigations opened during 2016 wage and in electricity and WASA rates.” regarding fuel theft, another widespread “And then to compound, this, there is Liz Wyatt, General Manager of Sol criminal activity. The attorney general’s a business levy tax, and a Green Fund BVI remarked that Sol prides itself on office this week pledged to step up the Levy tax which raised everything 200 providing customers with the highest fight against fuel theft from pipelines percent, so every dollar we collect, nine quality products and services and are and tankers. State oil company Pemex percent goes to the government on a delighted to offer our customers this has recorded some 70 fuel spillages 17 cents profit for super and premium opportunity to win such an amazing from pipelines caused by ‘milking’ year- and 12 cents profit per litre on diesel,” prize. She also took the opportunity to-date. Profeco has published online Naraynsingh said. to thank their loyal customers voicing the locations of fuel service stations it their appreciation for the promotion. has found to be selling short liters. From With the 2017 budget just over two And also gives promise on continuing January to May, the agency carried out months away, he noted that there were with delivering on quality products and 44 visits to fuel retail sites in Mexico conditions attached to government’s services under Sol brand. City, which resulted in the shutting plan to borrow one billion US dollars down of 75 fuel dispensers at 34 service claiming conditions included the PETROLWORLD 09082016. PETROLWORLD Issue 3 2016
Oil Company Retail Brand News > Africa: News & Updates Section 2 21 AFRICA News Index Botswana Nigeria Zimbabwe Puma Energy Opens New Fuel Retail EATECH Launch New Product to Test EcoCash & Total Partnership Site Fuel Quality in Network Fuel Retail to Private Dealers Ghana Petrocam Opens Another Site with Solar Zuva Petroleum Accepts Mobile Calibration Standard Problems Panels Payments Highlighted NNPC Targets Profitability By End of Top Oil MD Calls for Local Mergers of 2016 Independents NLNG Gas Company Year Award Ghana Seeks Russian Oil Investments Fuel Distribution Deal Record Mark Deregulation Postponed for Fuel Retail 300k Fuel Attendants Seek Better Sector Welfare Package Total Introduces ‘B2C’ Fuel Card Nipco Grabs Oil & Gas Awards Fuel Service Station Safety Training IPMAN Monitors Fuel Deregulation GNPC New Deputy CEO Appointments Policy Success Government Restores IPMAN’s Rights Kenya PPPRA To Introduce New Fuel Tax Agnes Yahuma Achieve Prestigious Fuel Subsidy Removal Has Worked Fellowship Claim IPMAN & NIMEX Partnership Liberia IPMAN Plans as Govt. Fulfill Strategies Key State Bodies Obtain Fuel Tax Niger Delta Crisis High Risk for Exemptions Investors Mozambique South Africa Sasol Award Amec Foster Wheeler Potential Fuel Product Distribution Contract Problem Highlighted Total Service Stations Expansion GAC Bunker Fuels and Enoc Agreement Namibia State Fuel Fund Eyes Chevron’s Assets Renewed Shell V-Power Promotion Landmark Biofuel Flight in South Africa Petroleum Training Institution CEO Appointed Fuel Shortage As Workers Strike IEC Worried Over Petrol Strike Fuel Strike Enters Second week Engen To Celebrate Women’s Month Strike Ends With 7% Pay Hike Engen Obtains Top Brands Award Tanzania Lake Oil School Desk Donation Tpdc Opts Natural Gas Bus-Engines Tunisia Legislative Framework in 2017 Uganda Total Launches New Premium Fuel Issue 3 2016 PETROLWORLD
22 Section 2 Oil Company Retail Brand News > Africa: News & Updates DR Congo: Puma Energy Opens Fuel Storage Terminal At Matadi Puma Energy opened its 99th bulk fuel storage terminal at Matadi The terminal was a detailed and large scale construction project in the Democratic Republic of Congo (DRC). This terminal is including the creation of four, 6,500 cubic meter Clean Fuels equipped to handle a variety of product types including Gasoline, Storage Tanks complete with truck loading and unloading racks. Jet Fuel and Gasoil. This hub will play a key role in shipment and The site also includes a new administration building, a state-of- distribution of fuel products, providing security of product supply the-art firefighting system, floating jetty and interconnecting jetty to DRC and its neighboring countries. pipelines, further interconnecting piping with another site and a 2 km concrete access road. The terminal and jetty will provide Jonathan Molapo, Puma Energy’s COO for Africa said, “The Matadi strategic vessel reception capability for DRC and the sub region. terminal will secure the supply of high quality reliable fuels for DRC and the region for the next generation. It has brought PETROLWORLD 01092016 employment to the area and we are proud to be helping develop DRC’s infrastructure and supply requirements.” Ghana: Fuel Service Station included the Goil, Petrosol, Shell, Total, I), fom the Greater Accra Regional Safety Training Dukes, Mamba Gas fuel retail brand. fire office, Mr Addo Adams, urged Participants were trained to identify management of fuel retail stations Fuel retail site owners and staff the causes of fire, its composition and ensure that they have good drainage in the Ga Central and Ga South classification, how to extinguish fire, systems, as well as wash away municipalities in the Greater Accra as well as safety tips on controlling fire fuel residue that settles on the Region have received training on fire involving fuel and gas. forecourt.“As owners of fuel stations, safety measures on their premises. you must also ensure that there are no The exercise was organised by the The acting Weija Municipal Fire leakages from the pumping systems Weija office of the Ghana Fire Service. Commander, Divisional Officer III (DO as that can easily lead to fire at the The participants from 12 fuel service III), Mr Isaac Saah, recommended that slightest mistake,” he cautioned. stations were trained on ways of the fuel service stations network take preventing fire and how to manage on board some basic precations when PETROLWORLD 050816 it effectively when it occurs. The developing the location of new sites. Source DailyGraphic participants in the training exercise An Assistant Divisional Officer I (ADO PETROLWORLD Issue 3 2016
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