Mabanaft has announced it has made substantial investments in a strategic expansion plan at Oikos’s Storage terminal on Canvey Island, a move that is aimed at meeting growing customer demand and to consolidate its position as a supplier in the UK Jet fuel market.

The investments include a commitment to long-term storage and the construction of a new road loading rack for Mabanaft’s exclusive use. This is the first independent road loading distribution project, dedicated to aviation fuel, to take place on the Thames in over 10 years.

Refinery closures in the UK over the last 30 years have led to an ever-increasing reliance on fuel imports, especially in the Jet fuel sector where demand continues to rise. The South East of England represents 75 percent of the UK’s entire Jet fuel market, and government plans to increase aviation capacity in this region will ensure that volumes continue to grow over the coming years.

Mabanaft has been delivering Jet fuel to airports and airlines for some years and has witnessed first-hand this increase in demand. Martin Cook, Mabanaft’s joint MD, explained: “Since we began supplying airports in 2011, our sales to airlines have grown substantially. Gatwick remains our largest airport in terms of volume; however we also supply many other customers in the region, as well as throughout the UK and Europe.”

The Oikos terminal on Canvey Island has seen significant infrastructure upgrades over the past five years, under the ownership of Challenger Life Company. These include the refurbishment of all tankage – approximately 285,000 cbm – to post-Buncefield compliance standards and the rebuilding of Jetty 2. With its 14.5 metres draft, the new deep-water jetty will be capable of accommodating larger international product tankers – LR2 up to 120,000 mts deadweight. Oikos is also a unique ingress point for both UKOP and CLH-PS pipelines, providing its customers with strategic access to airports in South East England – crucially to Heathrow, Gatwick and Stansted. 

In terms of Jet distribution by road, the new rack will be fully automated and will operate on a 24/7/364 basis. The recent construction of a new access road, Roscommon Way, provides hauliers with a high-grade road link to the major trunk routes – A13, A12 and M25 – thus avoiding local urban congestion.

Martin said: “The Thames is key to supplying the South East of England; so when the opportunity to take a Jet position at Oikos came up, we knew it was the right thing to do. Committing to Oikos with a new state of the art truck loading rack, as well as the traditional pipeline links, ensures that Mabanaft will have sole access to a resilient new UK supply route and be able to supply Jet fuel to airlines for many years to come.” 

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10th December 2018

10th December 2018