Bunker supply firm
Aegean Marine Petroleum Network Inc. (AMPNI) has confirmed that it will be closing down its supply operation in
Portland, UK.
Speaking yesterday (August 18) during the company's earnings call for the second quarter of 2015,
E. Nikolas Tavlarios, President of Aegean Marine Petroleum Network, explained that sustained lower oil prices in recent months had led to increased competition for market share in certain markets, particularly in North-West Europe. Thus, as a result, "to increase efficiency in this region, we will be winding down of Portland terminal and this and all operations will now be covered by our North-West Europe office. We expect this adjustment to realize a few million dollars in annual cost savings as a result."
Tavlarios went on to explain that the closing of the company's Portland operation "will translate to around $3 million to $4 million in savings per year".
Aegean's ownership of assets in Portland began in 2007 with the acquisition of
Portland Bunkers International Ltd (PBI). A subsidiary of Greek construction company Diekat S.A., PBI had been established in late 1999 to specifically set up a new bunkering operation in Portland.
Located within Portland harbour on the north-eastern side of the Isle of Portland, PBI's facility utilised underground storage tanks previously used by the British Royal Navy. The 40,000-cubic-metre capacity storage tanks were then renovated by PBI, a new pipeline system installed and a purpose-built jetty was constructed at the inner breakwater of Portland Harbour. The construction project was completed in 2004.
Following the acquisition of PBI in 2007, Aegean commenced physical supply operations in Portland on April 1, 2008.
Aegean has been carrying out bunker deliveries at inner and outer anchorage, and at its fully owned jetty. The company has been supplying all main grades of intermediate fuel oil (IFO) and marine gasoil (MGO) to clients in Portland.
Product for the Falmouth market has also been sourced from its Portland terminal.