Scotland’s only oil refinery Grangemouth to CLOSE with 400 jobs axed

SCOTLAND’s only oil refinery will close after months of desperate attempts to try to save it – with 400 jobs set to go at the plant.

The Petroineos plant at Grangemouth, Falkirk, will stop operations next year, the parent company announced today, ending hopes it could continue following government efforts to secure its future.

And it follows UK and Scottish ministers spending £1million to fund a study into how to keep it open.

Energy Secretary Ed Miliband previously said the UK Government would “leave no stone unturned” to ensure a future for Grangemouth.

But Petroineos said today the oil refinery will become a “finished fuels import terminal” by mid-2025.

Frank Demay, chief executive at Petroineos Refining, said: “Unfortunately, a terminal would require only around one-fifth of the current refinery workforce.

“Therefore we will soon enter an information and consultation process with representatives of our employees to discuss the proposals.”

The overall complex is Scotland’s biggest industrial site and employs over 2,000 people across oil and petrochemicals work.

Grangemouth produces 80 per cent of Scotland’s fuel, makes up four per cent of our GDP and eight per cent of manufacturing.

It is the main supplier of aviation fuel and provides petrol and diesel across the Central Belt.

The holding firm is a joint venture between Chinese state-owned PetroChina and London-based Ineos, owned by billionaire Jim Ratcliffe.

Scottish Government-commissioned experts said in July said a failure to plan had left Grangemouth unprotected from the impact of the refinery’s closure.

The refinery was first open in the 1920s before shifting into petrochemicals in the 1950s.

Experts said massive investment is needed to keep it running and to make it fit for purpose as Scotland shifts to renewable energy.

INEOS today insisted their other sites at the Grangemouth complex would “continue as normal” and would be “largely unaffected” by the closure of the refinery.

The company said they remained committed to a “long term, successful future for the site” which includes hitting net zero by 2045.

First Minister John Swinney said he was “deeply disappointed” by Petroineos’ decision.

He added: “I am deeply disappointed that Petroineos have confirmed their decision to close the Grangemouth refinery in 2025. My immediate thoughts are with the workforce.

“We will continue to engage closely with the UKG to deliver an investment plan, which includes a £100m package and immediate career support for workers, to help secure an industrial future for the site.” 

Michelle Thomson, SNP MSP for Falkirk East said: “My thoughts are first and foremost with the workers at the refinery for whom today’s announcement will be a shock, if not a surprise.

“I am also very mindful of the community for whom a just transition will feel too far away.

“I will be doing everything in my power to sustain the life of the refinery and to ensure it, and the important chemical cluster around it can be supported.

“I have today written to both the Scottish and UK governments with various questions about what could and should be done.”

She added: “The questions include protecting workers rights, timescales, the continuation of Project Willow, implications for the Finnart pipeline, and a call for the UK government to change the regulations concerning hydrotreated esters and fatty acids (HEFA) to support the development of sustainable aviation fuels.

“I would also point out that Tata Steel has secured £500m from the UK Government to pursue a green agenda – I will be seeking similar support for Grangemouth.”