As part of plans to turn the 100-year-old plant into a fuels import terminal, the operator of Scotland’s only oil refinery, Grangemouth, has said the refinery will be closing in 2025, with the loss of 400 jobs.
Petroineos first announced in November 2023 that subject to an employee consultation, it was preparing to shut down the oldest refinery in Britain, with production expected to cease in the second quarter of 2024. The decision was criticised by trade unions and politicians.
UK Energy Secretary Ed Miliband said, “It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.”
The site will become an import and distribution terminal for finished fuels, which will cut the number of employees at the site from 475 to around 75 over the next two years.
Petroineos is a joint venture between PetroChina International London (PCIL) and INEOS Group, a British chemicals firm founded by billionaire Sir Jim Ratcliffe.
Citing economic difficulties as the reason for the closure, the company stated: “Grangemouth is increasingly unable to compete with bigger, more modern and efficient sites in the Middle East, Asia and Africa.”
“Due to its size and configuration, Grangemouth incurs high levels of capital expenditure each year just to maintain its licence to operate.”
It said the plant is currently losing around $500,000 per day, and expects to see a $200 million loss for 2024.
Petroineos’s plans for Grangemouth had been opposed by trade unions and local politicians and there were campaigns to extend production until a low-carbon alternative for its long-term future could be secured.
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