The owner of Cheshire’s Stanlow oil refinery has announced plans to invest $250m in the site in a bid to boost throughput and increase yields and revenues.
Essar Oil (UK) Ltd, a subsidiary of Indian energy giant Essar Energy Ltd, wants to see annual throughput rise from 68 million barrels to 75 million following the major investment scheme scheduled for 2018.
A statement released by the firm said various projects would result in enhanced yields of high value products, reduced crude costs and stronger revenue growth. Essar also said that by the end of the next financial year it’ll have invested more than $800m in Stanlow since acquiring the facility in July 2011.
Prashant Ruia, non-executive chairman of Essar Oil UK, said: “The major investment we have confirmed in Stanlow will materially increase throughput and further grow revenues, building on the tremendous progress we have made in turning around the business over the past six years. It also demonstrates Essar’s commitment to remain invested in the oil and gas sector.”
The Stanlow refinery is regarded as a key national asset as it produces 16 per cent of the UK’s road transport fuel requirements. Essar is also a major player in the wholesale supply of Jet A-1 to UK airports and has secured contracts for the direct supply of aviation fuel to airlines including Emirates, Etihad, Jet2.com and Oman Air. It operates a network of 36 stations within the UK retail market, and planning permission has been secured for the first company-owned site, which is due to open later this year.
Mr S Thangapandian, the firm’s chief executive, added: “Essar has committed this year to a significant multi-million dollar capex investment in the Tiger Cub project at Stanlow to deliver improved yields across the product slate and drive revenue growth.
“In addition, the continued ambitious expansion of our UK retail network and direct aviation fuel supply business are also important strategic elements in the drive to build a fully integrated downstream energy company.”