Scotland’s only oil refinery, Grangemouth, is set to close by next summer, leading to the loss of 400 jobs. Petroineos, the company operating the refinery, attributed the closure to its inability to compete with facilities in Asia, Africa, and the Middle East. The site will be converted into a terminal for importing fuels like petrol, diesel, aviation fuel, and kerosene, which will require fewer than 100 workers compared to the current 475.
The refinery, which opened in 1924 and is the UK’s oldest, has been losing approximately $500,000 per day and is expected to lose $200 million in 2024. The new fuel hub is anticipated to be operational by early next summer.
First Minister John Swinney expressed disappointment at the news, and both the Scottish and UK governments unveiled a joint three-point plan for the site’s future. Workers and unions described the closure as a “kick in the teeth” and criticized the lack of support from both governments and the company.
Grangemouth accounts for about 14% of the UK’s refining capacity and supplies 65% of Scotland’s refined oil products. Petroineos, a joint venture between Ineos and PetroChina, said high maintenance costs and declining demand for fuel, especially with upcoming bans on new petrol and diesel cars, made the refinery unsustainable. The company plans to retain a small workforce to decommission the site and develop the new import terminal.
While the Scottish government announced a £100 million investment plan for local energy projects, union leaders believe the transition won’t save the jobs lost next year. Local worker Chris Hamilton called the closure a significant blow to the community, describing it as a dominant force in the area’s economy.
