Scotland’s only oil refinery could close by 2025
27 November 2023
Petroineos has announced that it is starting plans to convert Scotland’s sole oil refinery, which the company operates in Grangemouth, into a fuels import terminal. The energy company pointed to growing global competition and market pressures for the decision which could see operations cease by 2025.
The 150,000 barrel per day oil refinery, one of six across the UK but the only one in Scotland, is a major supplier of gasoline and diesel. Petroineos, a 50-50 joint venture between Ineos and PetroChina, said in a statement that it would soon begin preparatory work but did not confirm a timescale of the refinery’s transformation. The refinery is expected to continue operating under current conditions for at least a further 18 months.
The current plan involves transforming the Grangemouth refinery into a fuels import hub while an existing export terminal in Finnart, which is connected to Grangemouth via pipeline, could be converted into a diesel import facility.
Petroineos added that it would also explore the construction of a bio-refinery at the Grangemouth site, as well as other low carbon opportunities.
Trade union Unite said it continues to engage with Petroineos and urges other stakeholders such as the Scottish and UK governments to do the same due to the implications which the proposal has for the economies of the devolved and reserved administrations.
Sharon Graham, Unite General Secretary, said: “This proposal clearly raises concerns for the livelihoods of our members but also poses major questions over energy supply and security going forward. Unite will leave no stone unturned in the fight for jobs and will hold politicians to account for their actions.”