Petroineos, the joint venture between PetroChina and Ineos, has unveiled plans to close Scotland's last remaining oil refinery located in Grangemouth by spring 2025. The move follows an acknowledgment that the refinery business is anticipated to become ineffective in competing with overseas rivals. Approximately 500 jobs at the site are at risk.

The proposed transition involves transforming the Grangemouth site into an import-only fuels terminal, with preparations set to take around 18 months. Following the completion of this work, the refinery is expected to continue operations until spring 2025. Petroineos emphasized that a number of employees would remain at the site post the transition.

Franck Demay, Chief Executive at Petroineos Refining, emphasized the necessity of adapting to the decline in demand for traditional fuels amid the accelerating energy transition. The company intends to invest in preparing for a future transformation, focusing on importing finished fuel products for distribution through established supply networks.

As part of its communication to staff, Petroineos is exploring low-carbon opportunities for Grangemouth, including evaluating the feasibility of a bio-refinery facility on the site. The company is engaging with various parties, including the Scottish and UK governments, on these initiatives.

Trade union Unite has expressed concerns over job losses and the potential impact on energy supply and security. The union pledged to leave no stone unturned in its efforts to save jobs at Grangemouth and called on politicians to be held accountable for their actions.

Grangemouth Refinery, established in 1924, has evolved to provide a range of petroleum products and is a key contributor to Scotland's GDP and manufacturing base. The refinery's closure would mark a significant shift in its role from manufacturing fuel products to importing finished fuel products for distribution.