UK (Commonwealth) _By 2025, the Grangemouth refinery is scheduled to close, endangering hundreds of jobs and leaving Scotland and the north of England reliant on petroleum imports. Analysts predicted that drivers will pay more at the forecourt as a result of the shutdown.
According to a statement from PetroIneos, the 150,000-barrel-per-day refinery—one of only six in Britain and the only oil refinery in Scotland—is anticipated to stay in operation until the spring of 2025.
Even though it supplies a lot of fuel to Scotland, including aviation fuel, diesel, and gasoline, the facility has had a lot of difficulties because of increased competition from across the world, especially from recently constructed refineries in Asia and the Middle East.
The refinery is managed by Petroineos, a joint venture between PetroChina and Sir Jim’s Ineos. On Wednesday, the company revealed plans to cease refining at Grangemouth and convert the facility into a fuel import terminal.
It indicates that the facility will cease processing crude oil in the early months of 2025, eliminating the employment and expertise related to the refining division of the company. Up to 500 positions are said to be in jeopardy. The news was made one month after Petroineos chairman Andrew Gardner cautioned that Grangemouth may be jeopardized by Labour’s intentions for the North Sea.
Sir Keir Starmer’s pledge to forbid new gas and oil developments in the North Sea, according to Mr. Gardner, put Grangemouth in danger of running out of fuel for refining.
He claimed that although labor hasn’t realized that we need supplies, they still want to maintain manufacturing and employment in this area. He need easy, affordable, and readily available natural gas as a feedstock. Petroineos warned its employees via email on Wednesday that it will soon be unable to successfully compete with larger, more advanced refineries in the Middle East, Asia, and Africa.
Ed Miliband, the Shadow Energy Secretary, described the news as extremely concerning and stated, “A Labour Government will offer £1bn of public investment into the decarbonization of the UK’s major industrial hubs, including Grangemouth. Labour is determined to ensure that the skills and expertise of Britain’s oil and gas workers will drive Britain’s clean energy future.”
There are just six gasoline refineries left in the United Kingdom, and Grangemouth is the only one in Scotland. It has been an essential part of Scotland’s infrastructure for the past century and provides 80% of the country’s fuel.
Additionally, it provides raw materials to the nearby petrochemical and plastics facility operated by Ineos Olefins and Polymers (Ineos O&P), whose raw ingredients are used to make garments and building materials among other UK goods.
The company that controls Ineos O&P, Ineos Grangemouth, recorded a loss of about £300 million last year as opposed to a profit of £10 million in 2021, which it mostly attributed to rising energy costs. The functioning of the refinery must also deal with expensive energy costs.
There are just six gasoline refineries left in the United Kingdom, and Grangemouth is the only one in Scotland. It has been an essential part of Scotland’s infrastructure for the past century and provides 80% of the country’s fuel.
Additionally, it provides raw materials to the nearby petrochemical and plastics facility operated by Ineos Olefins and Polymers (Ineos O&P), whose raw ingredients are used to make garments and building materials among other UK goods.
The company that controls Ineos O&P, Ineos Grangemouth, recorded a loss of about £300 million last year as opposed to a profit of £10 million in 2021, which it mostly attributed to rising energy costs.
