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Home Business

Decision to close oil refinery was ‘premature’ and ‘could have been delayed for years’

by DigestWire member
September 13, 2024
in Business
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Decision to close oil refinery was ‘premature’ and ‘could have been delayed for years’
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Scotland’s first minister has said the decision to close the nation’s only oil refinery was “premature” and could have been delayed by “two to three years”.

Speaking to Sky News, John Swinney said the closure of the refinery at Grangemouth – which will lead to around 400 job losses – was a “very significant economic blow to Scotland“.

He said: “I think this decision is a premature decision.

“I think it’s one that could have been delayed by two to three years, and we’ve got to work to try to work our way through this to make sure that we protect and support those who are affected by a significant economic decision that’s been taken.”

The plant is expected to close by next summer, with union Unite saying there is “widespread fury” within the workplace due to the failure to ensure its future.

Owners Petroineos previously said the refinery had been facing “significant challenges” due to global market pressures and has been unable to compete against more modern and efficient sites in the Middle East, Asia and Africa.

The firm intends to transform the site into a fuels import terminal, with the number of staff expected to fall from 475 to 75.

Petroineos initially announced its plan last year, but union leaders hoped it could remain open longer to provide time for a green alternative to be established.

Keep up with all the latest news from the UK and around the world by following Sky News

Grangemouth is the oldest of the UK’s six refineries and currently supplies 65% of Scotland’s oil products, including petrol and diesel.

Mr Swinney said: “The premature closure of the Grangemouth refinery is a very significant economic blow to Scotland, and it is a particularly difficult circumstance for those who are working at the refinery.

“It is so important that those individuals are well supported, that we create new opportunities for them as part of the just transition to address the climate emergency, and we’ll be working with the workforce and with the company to create the best opportunities we can in what’s an incredibly difficult economic situation for Scotland.”

The Scottish and UK governments have announced a £100m package of support.

And on Friday, Mr Swinney visited Forth Valley College to meet with local government, union and Petroineos representatives to outline his government’s commitment to securing a low-carbon industrial future for the site and wider area.

Read more from Sky News:
Govt ‘will not carpet countryside with windfarms and pylons’
New Scottish wind farm could power 500,000 homes

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The first minister said measures must be taken to deliver the country’s climate change targets and reduce the impact of carbon on the environment.

He added: “But that’s got to be done in a managed fashion. And that is what will be the focus of our work in relation to the Grangemouth refinery – to make sure that we support the workforce, that we support the creation of new opportunities.”

Earlier on Friday, a decision to approve the UK’s first coal mine for 30 years was thrown out by a High Court judge.

The ruling likely forces Angela Rayner, the Labour government’s housing, communities and local government secretary, to reconsider the planning application for the Whitehaven coal mine – this time taking into account the full damage it could do to the climate.

Mr Swinney said: “There is no justification for the creation of new coal mines. It just operates directly into perpetuating the problems that we’re wrestling with on the climate emergency.

“But there is a duty on government at all levels to make sure that we work with workforces to manage the transition to address the climate emergency, to create new opportunities, to create sustainable industries, and that’s exactly what the Scottish government will be doing here in Grangemouth.”

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