Galp Energia's wholesale business markets oil products to the transportation, aviation, industry subsegments, contractors, marine and lubricants.
Spain is a strong growth market for our business. Galp Energia enjoys a leading position in the Spanish market as a supplier for transportation, agriculture and heating, and as a supplier of fuel oil to various manufacturing industries.
Galp Energia's strategy seeks to secure customer loyalty through integrated solutions and providing added-value services, such as electronic orders by e-ordering and serviexpress, an Iberian direct distribution service of diesel to small commercial customers and residential consumers.
Aviation
Galp Energia markets fuel for the civil and military aviation sectors, and manages storing and filling assets of aircraft at the Portuguese airports. We also provide some customers and group companies with technical support and training related to aviation fuel.
This sector operates in the Portuguese airports and air bases, alongside airports in Spain, Cape Verde and Gambia. In Cape Verde and Gambia, Galp Energia operates through the Group's international area.
Galp Energia supplies fuel to the major national and international air carriers that operate or stop over in those airports. In addition to commercial passenger flights, including airline, charter and low-cost companies, Galp Energia supplies cargo carriers, executive flight carriers, the Portuguese Air Force and the air forces of countries that stop over at airports in which we operate.
In recent years, our aviation business has experienced strong growth. In addition to the nine main Portuguese airports, Galp Energia began operating in 22 main Spanish airports, two airports in Cape Verde and one in Gambia. Galp Energia supplies additional services to some clients. These services include switch and valves in filling operations, training and technical support covering facilities, storage and filling equipment.
At Galp Energia, we have the flexibility required to respond quickly and effectively to customers' needs and demands. Equally, we guarantee that our operations comply with international quality, safety, security and environmental protection standards.
Marine
Galp Energia markets the main fuel products for ships, from diesel to fuel oil, but also high-quality lubricants, which are supplied by barge, tank truck or sea terminal.
The marine business is organised into two large segments: the international market (through international bunkers) and the national market.
The main difference between these markets is the tax exemption on oil product sales within the international market.
The Portuguese market comprises sales to the Sea network, fully operated by resellers and which supplies the fishing sector and marinas, port sales, namely to shipyards, sea transportation companies and tourism, and sales to direct clients.
Contractors
Galp Energia produces and markets bitumen and bitumen materials for road applications through contractors.
As the market leader in Portugal, we have a growing presence in Spain and export bitumen to African countries, including Angola, Guinea Bissau, Cape Verde, São Tomé, Mozambique and Algeria. This market is enjoying strong growth, thanks to Bitubag: our innovative and pioneering bitumen transportation solution.
Bitubag: a high-return innovation through research and development
The African market has significant bitumen needs for road construction. Many African countries import bitumen in bulk, drums or shipping containers.
However, transporting bulk bitumen within African markets is difficult, due to restricted logistics conditions. Using metallic drums and shipping containers is common, however, they are environmentally inconvenient, costly and logistically complex.
To overcome these difficulties, Galp Energia cooperated with Instituto de Engenharia Mecânica e Gestão Industrial (INEGI) to create a sustainable large-scale bitumen export solution. The partnership adopted the Bitubag technology, which was patented by BCS Group, an Austrian company.
Bitubag is a pioneering advance. Galp Energia is the first European company to invest in this solution and implement it commercially in selling bitumen materials. The solution comprises a double Bigbag that supports the packaging of one tonne of bitumen. The bag allows:
- easy transportation of bitumen at air temperature;
- waste reduction, by enabling the total use of bitumen and through recycling the exterior package;
- the reduction of energy costs through a more efficient heating system: a melter adjusted to the Bitubag; and
- logistics flexibility, by using standard containers for transporting and storing large amounts of bitumen at the construction site.
To develop this project, Galp Energia installed a cooling and packing unit (CPU) in the Matosinhos refinery, and began bitumen packaging in April 2008. We experienced immediate positive results, including a strong increase in sales and the opening of new markets. In short, the project has proved successful from a commercial and production optimisation perspective.
Additionally, Bitubag helped stabilise bitumen production in the Matosinhos refinery, as it enables sales, regardless of the climate, eliminating the seasonal effect. Many large Portuguese and international construction companies operating in the African markets have adopted this solution. The figures speak for themselves: in 2008 alone, sales exceeded 10,000 tonnes in several countries, namely Dakar, Angola, Camarões, Algeria, Congo, Senegal and Cape Verde.
Lubricants
Galp Energia develops, produces, markets and sells motor oils and lubricants under its brand name. As the leader in the Portuguese market, we have a market share of around 30 per cent within the entire market and the auto and industrial segments.
In the Iberian Peninsula, Galp Energia's market share is almost 9 per cent. The Company’s research and development department sets out the most appropriate formulations to respond to the most demanding specifications.
Galp Energia’s lubricant laboratory checks the physical and chemical levels of every formulation. The laboratory is one of the most advanced of its kind in Portugal. It leads the way in the type and variety of methods it employs, its wide range of state-of-the-art equipment and the expertise of its technical team.
The lubricant factory – located in Matosinhos refinery’s industrial complex – produces oils and lubricants for sale in Portugal and exportation. The lubricant factory has a production capacity of 80,000 tonnes a year of lubricant oils and 2,000 tonnes a year of lubrificant. It is responsible for supplying Galp Energia's lubricant markets.
In its lubricants production, the factory uses synthetic base oil and mineral oils. The paraffinic base oils are made from the Arabian Light crude and come from the base oil factory, a factory unit within the Matosinhos refinery.
The Gavá factory, which was acquired in late 2008 from ExxonMobil under the Iberian acquisitions, guarantees lubricant production for the Spanish market. The factory has a production capacity of 40,000 tonnes a year. Galp Energia also signed an agreement to distribute ExxonMobil's lubricant brands, namely Mobil 1.
Transportation
In the transportation segment, Galp Energia primarily markets diesel, but also products such as gasoline, lubricants and fuel oil. The marketing strategy aims to provide integrated multi-product solutions that satisfy customers’ specific needs.
In this segment, our main clients are railroad and road passenger transportation companies, public bodies and service companies, such as car rental companies.
Industry
Sales to the industry segment include liquid fuel that is primarily used in burning facilities, namely furnaces, to heat fluids and materials, in boilers to produce steam and hot water and in stationary diesel engines.
However, fuel oil is the most important product in this segment. The sectors we supply include textiles, food, pulp, cement, mining, and cogeneration.
Payment options
The Galp Frota card is among the payment options we offer customers. Galp Frota is a credit card aimed at corporate clients with car fleets.
The cards also award discounts on consumed volumes. Currently, over 400,000 customers use the Galp Frota card as a payment option in Portugal and Spain.
The weight of each segment in Portugal and Spain
