Alexela buys 4 LPG filling stations from Reola Gaas

Photo: Mihkel Maripuu / Postimees

Alexela Oil has acquired four liquefied petroleum gas (LPG) filling stations from Reola Gaas and is planning to build up the largest network of LPG filling points in Estonia.

The manager of Alexela Oil, Ain Kuusik, said LPG's being undoubtedly the most environment friendly fuel upholds Alexela's confidence in making entry into the liquefied gas market.

"Liquefied gas is already widespread in Western Europe and in the markets of our neighbors Latvia and Lithuania. That gives us confidence for today's investments and sponsoring a new, more sustainable world view in Estonia," Kuusik said.

Alexela is planning to set up ten more filling stations still before the end of this year and to continue expanding the network at a brisk pace in 2014 to ensure nationwide coverage.

"As Estonia's biggest chain of filling stations at the moment, we want to become the biggest also on the list of gas filling stations. Our concept for the future is to offer 'three-in-one' refueling services, or gasoline, diesel and liquefied gas," said Kuusik.

Of the four LPG stations acquired by Alexela Oil two are situated in Tallinn, one in Laagri just outside Tallinn, and one in Tartu. All four are situated on the land of Alexela's filling stations but were owned by Reola Gaas.

New Alexela LPG stations are to open in the small towns of Juri and Paldiski in Harju County in the coming few weeks. For private individuals Alexela Oil plans to offer the possibility in collaboration with partners to pay for LPG equipment for vehicles through an instalment agreement.

The manager of Reola Gaas, Jaanus Mumm, said that exiting the retail business enables Reola Gaas to focus more effectively on LPG wholesale and offer of LPG full solutions.

Alexela Oil owns the biggest chain of filling stations in Estonia consisting of 57 outlets, including 54 unmanned outlets. Alaxela Oil posted sales of approximately 134 million euros for 2012.