Grangemouth refinery to close in 2025

Grangemouth's oil refinery is to cease production in the second quarter of 2025.

Petroineos is to turn the site into a fuel import terminal - with around 400 jobs at risk.

The company say they're going to enter a "formal consultation process" with workers at the site.

Petroineos have said the site is not viable.

Frank Demay, Chief Executive Officer at Petroineos Refining, said:
 
“The energy transition is happening now and it is happening here. Demand for key fuels we produce at Grangemouth has already started to decline and, with a ban on new petrol and diesel cars due to come into force within the next decade, we foresee that the market for those fuels will shrink further. That reality, aligned with the cost of maintaining a refinery built half a century ago, means we are exploring ways to adapt our business. 
 
“The action we are taking to create an import terminal will safeguard fuel supply for Scotland. We currently expect Grangemouth to be ready to operate as a national distribution hub for finished fuels in Q2 next year.
 
“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. We have already agreed to move from the UK statutory minimum redundancy terms to an 18-month package and if plans proceed we intend to do everything we can to reduce the impact on our people. We will of course be seeking to minimise compulsory redundancies as far as possible.” 

Cabinet Secretary for Net Zero and Energy Gillian Martin said:

“My immediate thoughts are with the workforce. This is a very challenging time for them and their families, and we will support every worker affected by this decision. 

“We are working very closely with the UK Government and together we have communicated our disappointment to Petroineos today.

“The Scottish Government has consistently made clear our preference was for refining to continue as long as possible, and we have continued to press the shareholders for a positive decision until the 11th hour.

“This significant package of support combines immediate help for affected workers and a long-term contribution to ensure that Grangemouth continues to thrive in the future. We are clear that there should be a just transition for the refinery site and we remain committed to bringing forward low carbon opportunities that will sustain skilled jobs across the wider area for many years to come.”

UK Government Energy Secretary Ed Miliband said:

“It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.

“We will stand with the workforce in these difficult times, that is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and serve a viable industrial future for the Grangemouth site, with potential for future support from the National Wealth Fund.

 “Unlike in the past, the government is working in lockstep with the Scottish Government across every front. Workers and their families should be in no doubt this is a Government that stands with workers, trade unions, and businesses to fight for jobs and investment in Scotland.”