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Lpg Cylinder Distributor Novagas Expanding in the Credit Crunch

Independent lp gas cylinder distributor Novagas has laughed in the face of two recessions. The company was formed in the last recession in the late 1980s and is expanding in the current credit crunch.

In 1989, a farmers’ cooperative and two oil distributors combined to set up Novagas, a bottled lp gas supply company on the outskirts of Ashford in Kent. Novagas purchased an initial supply of lpg cylinders but then had to send them to West Sussex to be filled whilst it built its lpg gas filling plant.

“Those who can remember will be aware there was a recession on in 1989, and the company owners were told it was the worst time to begin an operation of this type,” said Peter Stuchbury, Novagas’ chairman and one of its original founders. “In fact, the major contractor building the plant went into liquidation, and construction was put on hold for two months whilst a new one was sought.”

Novagas’ plant eventually filled its first lpg cylinders in 1991.

“At that time, customer choice in the area was limited to a couple of national suppliers and so it wasn’t that surprising that the new kid on the block was soon expanding its customer base,” said Peter. ““When Shell Gas’ main distributor in the area sold out to Maxigas, we were approached as I had previously worked for Citigas and knew all the Shell customers in the area. We went on to fill and distribute for Shell right through to when they sold to British Gas and subsequently Flogas, when we filled cylinders for Flogas’ Hailsham depot. With the demise of Alta Gas, we filled cylinders for their Kent and Birmingham depots under the Maxigas name.

“At this time, there was a proliferation of small independents and we filled for six of them from as far as Southampton. We were then approached by BP to fill and distribute Handy Gas cylinders to around 16 filling stations in Kent and south London but, as these sites were refurbished, lpg gas was removed because they make more out of a bar of chocolate than a bottle of lp gas. It came as no surprise that we were then asked to deliver the new Gas Light cylinder from BP to Homebase stores in our area.

“We developed our own software, as at the time there wasn’t another dedicated programme on the market that could handle sales and returns of cylinders selling several copies to independent lp gas suppliers all over the UK. Unfortunately the software writer has now retired and we can no longer offer support to new users.” Novagas’ clientele are mostly off mains domestic customers, and the company offers a budget scheme, allowing its customers to spread the annual cost of their lp gas over twelve months at no extra charge.

Peter said: “It’s true to say that, in the Ashford area, you are never far from one of our customers, as most mobile snack bars, pubs, clubs and restaurants use either lpg or beer dispensing gas supplied by us. Many industrial and agricultural enterprises using our lpg cylinders have come to value the effort put into supplying them, realising the importance of a reliable delivery service.”

Novagas’ filling plant is currently undertaking its second 10 yearly complete shut down, undergoing degassing, ultrasonic inspection and the refurbishment of its onsite vessels and equipment. The company is also investing in a new 50 tonne vessel to increase its storage capacity – again, something that could be considered a brave move in a period of recession. Peter said: “We needed to increase our storage capacity to keep up with demand, and it also allows us more flexibility in placing orders from our suppliers.”

The new vessel was custom built by Echo Engineering of New Romney and delivered to the site in August. Petrotec Services in Sutton Coldfield handled the installation.

Peter said: “Echo Engineering was the only manufacturer of this type of vessel I could find in the UK. They did a splendid job and catered to our needs 100 per cent. Chris Tipping of Petrotec Services installed the tank and we used George Rose at Buxted to contract fill for us whilst the plant was shut so we could keep customers supplied. “Our reputation has been built on a solid belief that service is the key to success – after all our company motto is ‘we take care – seriously’.”

Contact Novagas Ltd on 01233 733130 www.novagas.co.uk

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