Shell Brands Chicago with Wholesale Deal

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Shell Brands Chicago with Wholesale Deal

HOUSTON -- Chicago-area motorists will have more opportunities to fill-up at Shell pumps now that an agreement was reached with three leading regional wholesalers, Graham Enterprise Inc., Parent Petroleum and Texor Petroleum, which will distribute Shell-branded gasoline to converted and new construction sites in the coming year.

"These three wholesalers are a welcome addition to our team and they will help establish Shell as the leading retail fuels brand in the area," Ann Peebles, spokeswoman for Houston-based Shell Oil, told CSNews Online.

Peebles explained that the agreement was in a negotiation phase for several months before pens hit paper and the deal was sealed. "In terms of timeframe, the process has already begun at some sites, and we anticipate that the first conversions will begin within 90 days," she said.

To date, there are more than 14,000 Shell-branded stations in the United States offering fuels and services. This latest agreement with Chicago wholesalers will eventually increase Shell's market volume by approximately one-third, giving the Shell brand approximately 20 percent of the total retail gasoline market in Chicago.

Combined, the three wholesalers have about 150 years of experience in the retail fuels industry. Graham Enterprise owns and operates 27 gasoline stations in the Chicago area. Parent Petroleum, the leading gasoline distributor to independent dealers in Northern Illinois, also operates its own retail units. Texor Petroleum, the largest independent wholesale gasoline distributor in Illinois, supplies gasoline to dealers throughout northern Illinois and northwest Indiana, and operates 12 privately owned retail locations.

"Along with Graham Enterprise and Parent Petroleum, we are very proud to join the Shell network," Thomas Gleitsman, chairman and CEO of Texor Petroleum Co. said in a released statement. "Shell has been a trusted source of high-quality fuels for more than 100 years. In addition, Shell is committed to providing a bright, clean and comfortable environment for its customers."

In other Shell news, Motiva Enterprises LLC, marketing Shell-branded gasoline in the eastern and southern United States, announced yesterday that it sold its interest in 22 Fairfield, Conn., area Shell-branded gasoline stations to Connecticut Dealer Stations LLC and 372 Wilton Associates LLC.

In addition, Motiva entered into a wholesale marketer agreement with Wholesale Fuel Distributors CT LLC, which also acquired all of the dealer leases and supply agreements.

Wholesale Fuel Distributors CT is an affiliate of Wholesale Fuel Distributors Inc., operating convenience stores and service stations throughout Connecticut and New York. The company will serve as a wholesaler for Shell-branded motor fuels at the 22 locations included in this purchase.

"With their extensive knowledge of the Fairfield market and long history of operational excellence, Wholesale Fuel Distributors will make an excellent addition to the Motiva retail network," Jim Deakin, East Region general manager for Motiva said in a released statement. "Working with Wholesale Fuel Distributors, we look forward to serving Fairfield area motorists, providing them with the quality fuels they have come to expect from the Shell brand."