Grangemouth: Scotland's last oil refinery to close by Spring 2025
The site will transition into a fuels import terminal
Last updated 22nd Nov 2023
Scotland's sole oil refinery is to cease operations in 2025, its owners have announced.
Petroineos, which owns the plant at Grangemouth, said it will become a fuel import terminal.
The company said in a statement: "The timescale for any operational change has not yet been determined but the work will take around 18 months to complete and the refinery is therefore expected to continue operating until spring 2025."
The firm said around 500 workers are employed at the site and a number of employees will remain following the move to an import-only terminal.
Franck Demay, chief executive at Petroineos Refining, said: "This does not change anything for our operation today, where it is business-as-usual at the Grangemouth refinery.
"We currently anticipate continuing refinery operations until spring 2025."
Unite general secretary Sharon Graham 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."
Derek Thomson, the union's Scottish secretary, said: "Unite continues to engage with Petroineos and we urge other stakeholders such as the Scottish and UK governments to do the same due to the implications that this proposal will have for the economies of the devolved and reserved administrations.
"Every option must be on the table in order to secure the hundreds of highly skilled jobs based at the Grangemouth complex for the long-term."
The Scottish Conservatives described the situation as "devastating" for Grangemouth refinery staff and a "hammer blow" for the national and local economies.
Douglas Lumsden, the party's net-zero spokesman, said the "hostile attitude" shown by the Scottish Government and the UK Labour Party towards oil and gas "will have been a factor" in the decision, although it is unclear if this is the case.
"They all fail to recognise the need for oil and gas - such as the refinery at Grangemouth - to be part of Scotland and the UK's energy mix for years to come," he said.
"Instead, the highly skilled workforce at Grangemouth have been delivered the worst possible news at a difficult time. The SNP-Green Government must act now.
"We have requested an urgent statement from ministers today in the Scottish Parliament to outline what this will mean for workers and what decisive action will be taken to support them."
Scottish Green MSP Gillian Mackay is calling for an "urgent summit" on the issue, saying: "This is an appalling way to treat workers who only months ago were being promised that they would be part of a just transition for the site. Instead they are being told their jobs are at risk just weeks before Christmas.
"Sir Jim Ratcliffe and his executives must explain themselves to the community that has for 100 years worked and loyally supported this site, and fully expected a better and more sustainable future that would support generations more.
"I grew up less than 200 yards from the plant and I can tell you right now that workers at the plant are bewildered, betrayed and furious at finding out about this from a story on the internet long after shareholders were made aware.
"They have been given next to no information - in fact, I broke the news to one senior union official."
Scottish Liberal Democrat economy spokesman Willie Rennie called on the UK and Scottish governments to "step up".
He said: "This is a dark day for the workers at Grangemouth.
"If the 'just transition' is to be more than just a slogan, it must deliver a future for the workers and for the Grangemouth site.
"The Scottish and UK governments must step up now."
Former first minister Alex Salmond agreed with Mr Lumsden, saying: "There is a cost to the hostility of Labour, SNP and the Greens to any hydrocarbon production in the North Sea and one price is the closure of Scotland's most significant industrial plant and the loss of thousands of highly paid jobs directly and through the supply chain."
Scottish Labour MSP Paul O'Kane - asking a question of Mr