Mersey oil giant Essar secures new £225m credit line with the Petraco Oil Company that will ensure more secure supplies of crude oil which is unloaded at Birkenhead and pumped to Stanlow via an underground pipeline. Tony McDonough reports
Oil giant Essar Energy Transition (EET) has renewed its relationship with Swiss oil trading business the Petraco Oil Company in a three-year agreement.
This deal means Petraco will provide a £225m credit line that will enable EET to diversify its sourcing of crude oil and marketing options for its products. This provides an extra level of security of supply in an increasingly volatile global market.
Around 150 supertankers a year call at the Tranmere Oil Terminal on the Mersey in Birkenhead. Once the oil is unloaded it is pumped several miles via an underground pipeline to EET’s giant Stanlow refinery at Ellesmere Port.
Once refined the oil is then turned into multiple petroleum products for EET’s wide customer base. Tankers picking up those products at Stanlow can be seen up and down the Mersey on a daily basis.
Satish Vasooja, chief financial officer at EET, said: “This important transaction demonstrates the strength of this strategic relationship and will ensure that we can build on our strong commercial performance.”
Working with Petraco means EET can source crude oil from a wider variety of places instead of depending on just a few suppliers. It can also respond more quickly to price changes or supply disruptions.
This agreement follows a “landmark” investment year with Essar Energy Transition Fuels also achieving its highest ever domestic sales and production since acquisition. It is investing in low-carbon energy and the decarbonisation of its industrial assets.
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Alberto Salsiccia, chief financial officer at Petraco, added: “We’re pleased to have concluded this trading facility for next three years with Essar, a UK national energy player.
This demonstrates Petraco’s varied ability to collaborate with business partners and drive mutual benefits.”