March 20, 2015 [CLH] - Spain’s CLH has acquired the GPSS (Government Pipeline and Storage System), the largest oil distribution network in the United Kingdom for £82 million, after winning the sale process organised by the British Government.
The GPSS logistics infrastructure acquired by CLH comprise a pipeline network of 2,000 kilometres, which represents 50% of the total in the UK, and 16 storage facilities, with more than one million cubic metres of storage capacity.
The network is currently implementing a notable infrastructure modernisation programme aimed at making it safer and more efficient, which CLH has committed to continue.
The offer submitted by CLH for the acquisition of GPSS took into account the favourable estimates for growth in demand for aviation fuel at the airports currently supplied by this oil distribution network and the commercial growth opportunities, as well as the broad experience of the network’s current management team.
In the ministerial statement announcing CLH as the buyer of the GPSS, the Ministry of Defence highlighted that CLH would bring unique experience to the operation of the GPSS from operating and maintaining a similar network across Spain, serving both civil and military customers.
CLH chairman, José Luis López de Silanes, said “The purchase of the GPSS is the first acquisition that CLH has undertaken outside Spain in a European country and it represents an important step in our internationalisation strategy.
“Thanks to this deal, CLH has increased its current oil pipeline network by 50% and continues to progress in the internationalisation project it started in 2014 with the creation of a joint venture in Oman for the construction of a pipeline network in that country.”
CLH’s Managing director, Salvador Guillén, said “We are delighted with the completion of this deal. CLH already has extensive experience in this sector. We currently manage 4,000 kilometres of pipeline and storage facilities that provide services to the Spanish Ministry of Defence. We have achieved the high level of efficiency with our work, something that has been recognised on several occasions by the International Energy Agency. We look forward to bringing our experience and expertise to the UK.”
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