In a deal backed by Danske Bank, Cookstown-based energy group LCC has bought out its partner in a ‘state of the art’ oil terminal in Maydown, County Londonderry (it formed a joint venture with Norwegian oil giant Statoil ASA in 2005 to build the terminal).
LCC now has sole ownership and control of the terminal, and it has signed a contract with Q8 that will see 135 million litres of aviation fuel supplied to EasyJet at Belfast International Airport. In order to meet the stringent quality assurance standards for storing and transporting aviation fuel, LCC has invested £1.5 million in highly advanced plant and equipment.
The family-owned group was established as a coal business in 1986 and has since diversified into oil, electricity and gas distribution.
It reported a turnover of £544 million in 2015 and now employs more than 180 people. It also has interests in Spain, Belgium and Colombia. Director Dan Loughran said the acquisition of the terminal is strategically important for the company, giving it a significant competitive advantage.
“Logistically, transporting oil is expensive. It eats into profit margins, impacts on the environment and ultimately increases costs for customers. The terminal is used to import and store oil before it is transported to markets in Northern Ireland and the Republic. By owning the terminal outright, we will be able to control our costs and pass those savings on to customers.
“In a process where the time-frame for completion of the deal was a critical factor, the support from Danske was essential to the success of this acquisition.”