Cnergyico overtakes Shell and Total to become largest private sector fuel distributor

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A shift is underway in the energy and power sector in Pakistan as Cnergyico, formerly known as Byco, is set to become the largest private sector fuel retailer in Pakistan. Cnergyico’s change in market position comes after the announcement of the acquisition of a majority stake in Puma Energy Pakistan Private Limited (“Puma”).

After the acquisition, Cnergyico will become the second largest fuel retail network in Pakistan, behind only state-owned Pakistan State Oil (PSO). Based on current figures shared by CMO Pakistan, Cnergyico overtakes Shell and Total to become the leading private sector fuel retailer in the country. The deal with Puma will add 542 gas stations to Cnergyico’s holdings, bringing its total to around 1,000 and making it the country’s largest private fuel retailer. The state-owned Pakistan State Oil Co. has 3,500 outlets, Total Parco Pakistan Ltd. has over 800 outlets and Shell Pakistan Ltd. has 766 points of sale.

Even before the acquisition that significantly expanded the company’s portfolio, Cnergyico had one of the largest refining capacities in the country. They own the largest oil refineries in Pakistan with a total installed capacity of 156,000 barrels per day located in Hub, Balochistan. Additionally, the company has a dedicated deepwater oil terminal which is used to import oil for refineries.

The move comes just over a month after Cnergyico officially changed its name from Byco. The announcement was made in early December 2021 because, in the words of their CEO Amir Abbassciy, “to mark our evolution from an oil company to a strategic oil refining and marketing company”. However, the name change had also come just months after the federal government had serious allegations casually made to create artificial shortages, violate international sanctions and defraud the state-owned fuel retailer against Byco.

“The acquisition of the majority stake in Puma Energy demonstrates our continued interest in further strengthening and diversifying our business,” said Mr. Amir Abbassciy, CEO of Cnergyico Pk Limited, “We are committed to growing, modernizing and diversifying our activity and the acquisition of Puma Energy will contribute to supporting this strategic plan.

Despite the name change and a few hiccups along the way, Cnergyico seems to be going strong. Originally founded as an oil refining company called Bosicor in 1995 by Parvez Abbasi, a former Caltex employee and veteran in the shipping and trade finance industry, Cnergyico has undergone many changes and challenges. over the years. Construction of its refinery did not begin until 2001, and its refinery did not begin production until 2004, when its Hub refinery in Balochistan began production. The refinery started out with a processing capacity of just 8,000 barrels of crude oil per day, but grew to a capacity of 30,000 barrels per day in its first year. In 2009, the company renamed itself Byco. It was not until 2007 that Byco launched its gasoline retail business, opening its first gasoline pump in Sukkur.

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Since that first fuel pump, Cnergyico’s board of directors, after approving the acquisition of 57.37% of the shares of Puma Energy, has ensured that its network of fuel pumps has grown to more than 1000 and left behind its private sector competitors, Shell and Total. According to a report in Bloomberg, Cnergyico will continue to operate the two brands separately and will be the supply backbone for the second largest gas station network in Pakistan after PSO. The company also has two storage terminals in Machike, Punjab and Daulatpur, Sindh which together can store up to 10,500 MT of petroleum products.

The opportunity to make the acquisition came because Puma Energy Holdings Pte, sold its stake in the Pakistani unit to joint venture partner Chishti Group last month. The struggling emerging markets fuel retailer and storage company controlled by trading house Trafigura Group Pte, is in talks to sell infrastructure assets in more than 30 locations, according to another Bloomberg report. The Swiss-born company that supplies and stores petroleum products, offers storage, transportation, logistics and wholesale petroleum distribution has been unprofitable for years following a wave of debt-fueled acquisitions. Trafigura, the trading house behind the company, increased its stake in April by agreeing to buy Sonangol’s entire stake in the business in a $600 million deal.

As Cnergyico moves forward, it will be interesting to see what they do with their new position as the largest private player in the market. As one of Pakistan’s leading energy companies, it will seek to focus on productivity and profitability. They are already Pakistan’s largest oil refiner by design capacity and are the only company in the country with a dedicated mooring point (SPM). Cnergyico’s SPM is the only floating liquid port in the country, and the company employs a 24-hour crew dedicated to the safety and security of the buoy and vessels in and around the SPM mooring area.

Cnergyico refines crude oil into various marketable components including liquefied petroleum gas, light naphtha, heavy naphtha, high octane blend component, motor gasoline, kerosene, jet fuels, diesel high speed and fuel oil. The Company prides itself on having the largest capacity crude oil storage tanks in the country. Cnergyico’s marketing network supports outlets in over 80 cities across Pakistan and is an emerging player in Pakistan’s petroleum marketing industry. They have approximately 900 dedicated employees across all divisions of the company.

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