After announcing the purchase of 56 Petrol pump from the parent company of sobeys Thursday, Shell Canada Is on the lookout for other potential acquisitions as it seeks to expand its retail fuel footprint across the country.
“We’re always looking,” said Kent Martin, general manager of mobility for the British energy giant’s Canadian subsidiary. oysters Plc, in an interview.
“If there are other sites and other networks that are a good fit for not only the Shell Mobility business but our integrated business, we are certainly looking at those.”
Shell Canada and Soby’s parent Empire Co. Ltd. on Thursday announced the acquisition of 56 Empire-owned gas stations in western Canada for approximately $100 million in cash.
Martin said the deal is in line with the global push for Shell Plc to expand its retail fuel network in preparation for the coming energy transition.
“We are expanding our footprint, and this not only allows us to meet the needs of customers and motorists in Canada today, but also allows us to expand additional fuel offerings and low-carbon fuel offerings into the future in these locations. also gives a great opportunity to do,'” he said.
Martin said Shell is forecasting that demand for gasoline will decline in favor of cleaner-burning fuels in the long run. electric vehicles,
The company believes that it can hedge against those losses by not only preparing to offer hydrogen-based and renewable fuel products to motorists someday, but also by expanding its convenience store offerings so that drivers who Stop charging EVs, they spend more on food and other items. ,
It is the same strategy that other leading fuel retailers are banking on. Parkland Corp. announced earlier this month that it will install 50 ultra-fast charging stations across its Chevron and On The Run retail portfolios in B.C. and Alberta.
Like Shell, Parkland is also investing in the customer experience, betting that EV drivers will spend money on food and retail items while they wait for their car to charge.
Suncor Energy has also announced that it is targeting EV charging as part of a larger plan to increase revenue from its Petro-Canada retail network and offset anticipated lower gasoline sales in the future.
Earlier this year, Suncor indicated it was considering selling Petro-Canada. But the company said in November that a strategic review concluded that Suncor’s best bet was to retain and “maximize” the chain by investing in non-fuel related businesses such as quick-service restaurants, convenience stores and participation in loyalty partnerships. Will happen.
Suncor also said it had concluded that it was unlikely to find a buyer willing to acquire the entire chain, or to pay the “premium valuation” the company believes its retail chain is worth. .
On Thursday, Martin said Shell had some initial interest in Petro-Canada, but discussions never progressed further.
“The Petro-Canada network is very strong, so there certainly would have been interest in some of those assets. There’s no doubt about that,” he said. “But we haven’t been able to talk of any deep connection.”
When it comes to the newly acquired Empire locations, Martin said, Shell’s immediate focus will be on updating the branding at the gas stations and ensuring they meet Shell standards.
But he said the company will also assess all new sites for possible upgrades and enhancements.
Martin said that because Shell has a strong presence in Europe, where EV adoption has been faster than in North America, the company has a strong sense of what the fuel station of the future will look like.
“A very attractive retail offering is important . . . so strong Wi-Fi offerings, good coffee, areas where customers can spend time in the store,” Martin said.
“We also see just pure EV hubs in the future. I think we’ll start seeing them in Canada in the near future. We see them in Europe, and it will be part of the mobility landscape for us as well.
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