Essar Group, the Indian conglomerate, has agreed to acquire SGN Retail, one of the United Kingdom’s largest independent petrol-station operators, in a move that will significantly expand its forecourt network. The deal, announced this week, includes 118 petrol stations and will allow Essar to double the size of its retail operations in the UK.

The acquisition aligns with Essar’s long-term strategy to grow its network to 800 forecourts by 2031. The company intends to supply these locations from its Stanlow refinery, located in northwest England, which is the country’s second-largest refinery by output. Arvan Ruia, chief executive of EET Retail, Essar’s fuel retail division, highlighted the quality of SGN’s sites, noting that they are “one of the highest-quality forecourt networks in the UK,” with average forecourt sizes well above market norms.

Essar declined to disclose the financial details of the deal. Industry estimates suggest that similar transactions value petrol stations at approximately £3.5 million each, indicating the total purchase price for SGN’s portfolio could be in the region of £400 million.

The acquisition comes amid a broader trend in the global fuel industry. Major oil companies such as BP and Shell have been divesting from retail petrol stations, responding to investor pressures to focus on core upstream and refining operations. Meanwhile, companies like ExxonMobil and Chevron typically operate through franchise models, maintaining brand presence without direct ownership of forecourts.

Despite the continuing growth of electric vehicles in the UK market, Essar sees ongoing potential in expanding its petrol station footprint. Factors cited by the company include population growth, an increasing number of multi-car households, and a general decline in the total number of petrol stations nationwide, which currently stands at about 8,300. Essar’s expansion would position it to capture roughly 9 percent of the UK forecourt market by 2031. The largest independent operator currently is Motor Fuel Group, with more than 1,200 sites.

Founded by Indian billionaire brothers Shashi and Ravi Ruia in 1969, Essar has been active in the UK fuel sector since acquiring the Stanlow refinery from Shell in 2011. The refinery handles around 270,000 barrels per day. The group has pledged to invest $2.4 billion in Stanlow to transition the facility toward a “low-carbon energy hub,” with plans to incorporate carbon capture technologies, hydrogen production, and sustainable aviation fuel.

Owning a retail network, Essar said, would enable it to increase sales of renewable fuels in the future, complementing its broader energy transition goals.