CLH begins operating the UK’s largest oil pipeline network

Source:CLH Group

CLH begins operating the UK’s largest oil pipeline network

The CLH Group has taken over the ownership, management and operation of the GPSS (Government Pipeline and Storage System) network it acquired in March, after winning the bidding process organised by the UK Government. The GPPS shall now be known as the CLH Pipeline System (CLH-PS) with immediate effect.

The CLH-PS is an oil logistics system that comprises 2,000 kilometres of pipeline and 16 storage facilities, representing 50% of the UK’s entire oil pipeline network. It has a capacity of over one million cubic metres.

As the operator of over 4,000 kilometres of pipeline in Spain, CLH bring extensive experience and expertise in the management of pipelines and storage facilities, which includes the provision of services to the Spanish Ministry of Defence. Its work in oil logistics has been recognised by the International Energy Agency.

The CLH-PS network was previously owned and operated on behalf of the Ministry of Defence by the Oil and Pipelines Agency (OPA). The near 80 staff of the OPA will be retained within the newly formed CLH Pipeline System (CLH-PS) Limited, with its registered office located in London. The Board of Directors of CLH appointed Juan Bonilla as Chairman of CLH-PS and Charles Price, who served in this capacity in OPA, as Chief Executive Officer of CLH-PS.

The network provides aviation fuel logistics to both RAF stations and civil aviation, including a number of the UK’s busiest airports, such as Heathrow, Gatwick, Stansted and Manchester, as well as other 10 regional airports supplied by road tanker.

CLH won the bidding process in March 2015, purchasing the network for £82 million. Its bid was based on the strategic value of the CLH-PS, the commercial development opportunities it presents and the experience of the staff of the OPA.

Following this deal, CLH has increased its worldwide pipeline network by 50%. The purchase of the CLH-PS is a central part of the internationalisation plan CLH started in 2014 by creating a joint venture in Oman, where it is currently constructing a storage facility near Muscat and a pipeline network of 300 kilometres.

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