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The UK and Scottish governments have been asked to hold urgent talks to safeguard the future of Scotland’s only remaining oil refinery at Grangemouth.
Daniel Johnson, Scottish Labour’s economics spokesman, has written to PetroChina, part of the joint venture that owns the site, in a bid to discuss the future of the complex, where oil refining is due to stop next year.
It is also calling on the Scottish and Westminster governments to organize meetings.
Petroineos has said it is preparing to close the Grangemouth facility, where refining has been carried out since 1919, to convert it into a fuel import terminal.
Petroineos, a joint venture set up in 2011 between PetroChina, the state-owned Chinese oil company, and Ineos, which is controlled by billionaire Sir Jim Ratcliffe, will operate the complex as usual until at least spring 2025. After that, it will operate as a terminal only to import oil, raising concerns about the future of 500 jobs.
Grangemouth, at the mouth of the River Forth, is one of six remaining oil refineries in Britain and supplies much of the petrol and diesel for suburbs in Scotland and northern England.
“Grangemouth is one of Scotland’s key strategic assets, but neither Scottish Government seems serious about protecting its future. Both our governments need to come around the table to discuss both urgent action and a real long-term plan to keep Grangemouth running,” Johnson said in a statement.
He said Labour’s green economy plans would aim to make the Grangemouth site “home to the industries of the future” by creating a decarbonisation hub and associated carbon capture and storage project.
Johnson added that he wanted to know why oil refining was still likely to stop by 2025, when Petroineos’ latest accounts showed the site was profitable and that it had now secured a critical investment in hydrocracker.
unite union is among groups that speak with Petroineos to explore ways to extend the life of the oil refinery operations and to develop alternative energy sources at the complex.
Gillian Martin, Minister for Energy, Just Transition and Fair Work, said the Scottish Parliament last week that it met with Petroineos in March and the Scottish Government continued to work with the company. She said the Scottish Government was investigating whether or not Grangemouth could become a biorefinery.
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It said: “The Grangemouth site and its workforce are critical to Scotland’s economy and our transition to net zero.
“The Scottish Government is committed to working in collaboration with Petroineos, the UK Ministers and Unite the union to explore the options available to accelerate new employment opportunities.’
A spokesman for the Department of Energy Security and Net Zero said: “This is a commercial decision for the owners of the refinery, Petroineos. However, we know this is a worrying time for workers and their families and we are working closely with Grangemouth Refinery on the long-term future of the site and how they support staff.”
Petroineos has been contacted for comment.
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