A big change at Finnish gas stations

A big change is happening along the roads. A familiar brand has just disappeared: the last Shell shell disappeared from the gas station last week. In Finland, the Shell logo was first used on products in 1921. Now more than 170 Shell-branded stations have been converted to St1 stations.

“The size of the investment program is about 40 million euros. For Finland, the amount is twenty million euros,” he says St1 Finnish sales and network manager Juha Vanninen.

The change is about the following: St1 entered into a long-term license agreement for the use of the Shell brand in retail sales after buying the majority of Shell’s fuel processing and sales businesses in Finland and Sweden in 2010 and in Norway in 2015. The current contract period is ending and St1 has completely switched to using its own brand.

The reform is part of a wider change carried out in the Nordic countries, where a total of around 630 Shell stations have been changed to St1 stations. With the change, the Nordic St1 network comprises approximately 1,250 energy stations.

Big differences in the Nordic countries

In connection with the reform, St1 has expanded its charging network for electric cars and its biogas distribution network for heavy traffic. St1 offers fast charging services at 42 stations in Finland, ten of which have been opened during the current year.

“Next year, our goal is to invest ten million euros in electric charging in the Nordic countries. In Sweden and Norway, the growth is faster than in Finland, because there the electrification of cars is progressing at a fast pace,” says Vanninen.

According to him, approximately 25,000 new electric cars have been registered in Finland over the past year. In Norway, the corresponding figure is 130,000 and in Sweden more than 100,000 electric cars.

“From a Finnish electric car driver’s point of view, perhaps Europe’s densest high-power charging network is already ready here, when comparing the number of electric cars in relation to charging stations,” says Vanninen.

In his opinion, the consumer can get high-power charging in Finland at an affordable price.

“According to my personal experience, in Germany it has been possible to pay 80 cents per kilowatt hour. In Finland, we operate at less than 40 cents per kilowatt hour,” says Vanninen.

St1’s goal is to create a network of more than 50 liquid biogas stations in the Nordic countries by the end of 2028. At the end of the current year, it will be possible to refuel at seven biogas stations in Finland and a total of 13 biogas stations in the Nordic countries.

Big market

There are no publicly available figures on the market shares of service station chains. The assumption is that ABC is the market leader in gasoline. In diesel, the number one is In this. Due to heavy traffic, the diesel market is larger than the gasoline market. Thus, Neste is probably the largest player in terms of fuel volumes.

“St1’s market share is a little over 20 percent, depending on the product,” Vanninen estimates.

According to him, the Finnish market for fuels is more than five billion liters in size.

“We sell about 1.3 billion liters a year,” says Vanninen. The amount corresponds to the cargo of approximately 25,000 tanker trucks.

Last year, St1 Group’s turnover was 7,960.7 million euros and operating profit was 171.9 million euros.

Understanding the situation of Teboil traders

Service station operations have been shaken by the sanctions against Teboil. Some of Teboil’s stations have fallen out of the game. According to Vanninen, the situation has increased St1’s customer numbers.

“When you look at the big picture, there is enough capacity in the industry.”

There has been talk in the public about Teboil dealers moving to other chains.

“We will calmly watch how the patterns develop. We understand the traders’ plight. The situation is unfortunate”, Vanninen sympathizes.