BP Announces Plan to Sell its Global LPG Bottles and Tank Filling Business
BP announced today that it intends to sell its LPG bottles and tank filling operations in Portugal, UK, Austria, Poland, Netherlands, Belgium, Turkey, China and South Africa, as well as its non refinery-integrated wholesale business.
Also included in the sale are LPG storage terminals, bottle filling plants, customer lists, operating licences and logistics assets.
The decision follows a review of BP’s LPG portfolio last year. As a result of the review, it was concluded that BP is not the natural owner long term of the LPG bottles and tank filling business.
It was felt that the business would offer greater opportunities for other companies wanting to invest allowing BP to continue to focus its refining and marketing businesses where it has leading market positions it can sustain and grow in the long-term.
BP intends to retain its autogas business in Europe and move it into the Fuels Value Chains, and maintain LPG wholesale outlets to support its refinery operations.
Commenting on the divestment, Tufan Erginbilgic, chief operating officer, Refining and Marketing said: “BP intends to remain a key player in the European LPG autogas sector and through the Fuels Value Chains we will have a strategic fit with our forecourt fuels offer. We will also maintain LPG wholesale outlets where they support our refineries.”
He said: “We believe that new owners will be able to build on these good assets, and market positions to grow the businesses further in the best interests of customers and, other stakeholders, including those who work in the business.
We want to develop world class fuels value chains with an integrated offer to our customers utilising our market positions.”
The LPG bottles and tank filling activities will continue to be managed as a global business until sold. BP intends to sell the businesses as going concerns and expects significant market interest.
BP expects to complete any deal by the end of 2013, subject to regulatory and other approvals.
Posted: February 10, 2012