Fuel for the fire

The Norwegian fuel concern Statoil wants to invest between zł.400-600 million in Poland over the next six years and increase the number of its fuel stations in Poland to about 400-450 by 2011, from the current 228. That would give Statoil a market share of about 10-12 percent.

The number of Statoil's economy stations will see the biggest increase. From the current 11 stations operating under its cut-price 1,2,3 brand, the Norwegian company expects the number to rocket to around 100 by 2011. "We will develop our economic station network because there is a group of clients for whom the price is an important issue," the company's spokesperson Krystyna Antoniewicz-Sas said.

The stations will offer fuel at a lower cost, but will not have additional facilities such as a car wash and a store. Though many other firm's economy stations are self-service, that's not the case with Statoil's. "The reason for this is that we sell LPG fuel," Antoniewicz-Sas explained.

The economy segment of the gas-station market is set to become extremely competitive in the coming months. Recently, Polish oil giant PKN Orlen announced the introduction of its own economy brand of gas stations under the brand Bliska. However Statoil isn't fazed by the competition from the domestic powerhouse.

"Orlen is just launching the economy station chain, while we are already developing and expanding ours," Antoniewicz-Sas said. "Our network has been expanding since February 2004 when we opened the first cheaper station in Kostrzyń. We are the forerunners on the market," she added.

Still, Antoniewicz-Sas doesn't think that the main players on the market will now concentrate on expanding the low-cost stations. "The main players will have both the economy and the premium stations in their portfolio. We will expand our economy chain regardless of the premium sector," she said.

Furthermore, the number of stations under the Statoil logo will increase by 50. As of last month, the company had 182 Statoil brand stations. The number of the company's franchise stations will also see a rapid rise. Today the company has around 10 franchise stations, and in 2011 the number is expected to soar to between 100 and 150 units.

"The franchised stations will also operate under the Statoil logo," Antoniewicz-Sas explained. Independent petrol stations, as well as a number of  the so-called 'partner stations' are expected to strengthen Statoil's position in the sector. The partner stations include 35 units from the Swedish chain, Preem, acquired by Statoil a few years ago.

Statoil has so far invested zł.1.3 billion since it started operating on the Polish market in 1992. In 2004 the company reported zł.2.35 billion in revenue from sales.

Michał Pakulniewicz