Milford Haven refinery to be converted to oil storage terminal

Puma Energy (co-owned by Swiss commodity company Trafigura and Angola’s state oil company Sonangol) has acquired a series of UK assets from Murco Petroleum, a subsidiary of Murphy Oil Corporation. The deal includes the Milford Haven facility in Wales and three inland terminals at Westerleigh, Theale and Bedworth, as well as Murco’s wholesale and distribution business in the UK. The acquisition adds approximately 1.4mn cm of storage capacity to Puma Energy’s midstream operations of 5.6mn cm.

Under the terms of the agreement, which represents Singapore-based Puma Energy’s first acquisition in the UK, the company will convert the Milford Haven site into a state-of-the-art storage facility, reportedly taking on all the terminal and distribution employees.

As noted in Petroleum Review’s Retail Marketing Survey, the UK has become increasingly reliant on fuel imports following a raft of refinery closures (including Milford Haven). This trend has created opportunities for storage and distribution operations.

Puma Energy also recently signed a sales and purchase agreement with BP Australia to buy its Australian bitumen business, subject to regulatory approvals. The company is one of the largest traders of bitumen, with a worldwide distribution and marketing network, owning and operating one of the world’s largest bitumen vessel fleets.

Puma Energy Australia General Manager Ray Taylor said the decision to acquire the bitumen business comes at a time when the Australian bitumen market is going through transition. ‘The Australian bitumen market is increasingly reliant on imports after the shutdown of several refineries. Our global supply and distribution network and our fleet of vessels ensure supply security and enable us to source high quality and competitively priced products for our customers.’

Caption: Milford Haven refinery

Source: Murco Petroleum