Key Points
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Grangemouth Refinery has ceased processing crude oil - It brings the oil refining industry in Scotland to an end
- Scotland’s only oil refinery announced it would close this summer
- First group of redundant workers leave plant – with 200 to depart by end of June
All oil refining in Scotland ceased on Tuesday as operations at Grangemouth ended.
This means that all fuel needed in Scotland must be imported.
Petroineos, which runs the refinery, notified staff by email that all oil refining work had ended and that the first group of redundant workers are leaving plant – with 200 to depart by the end of June.
“With the shutdown of CDU2 today, Grangemouth Refinery will cease processing crude oil and the era of refining at Grangemouth comes to an end,” the notice read.
“For over a 100 years the name Grangemouth has been synonymous with the refining industry, but the world has changed and the market in Scotland has been unable to support a refinery.”
The local MP said Scotland “is a victim of industrial vandalism and devastation” as a result of the closure.
In November 2023, Scotland’s only oil refinery announced it would close.
The impending closure of the refinery, which first opened in 1924, led to fears for employment in the area.
In recent months, hundreds of workers have taken voluntary redundancy while a number of compulsory redundancies have also been made.
The processing plant is being transformed into an import terminal.
Over the last six weeks, the plant said 85% of demand for transport fuels had been met with imported products.
‘Grangemouth no more’
Insight Colin Mackay STV News political editor
In Letter From America the Proclaimers sang “Bathgate no more, Linwood no more, Methil no more, Irvine no more”.
Today, “Grangemouth no more” could be added to the list lamenting the decline of Scotland’s industry and the loss of jobs.
The letter from PetroIneos to staff, sent out at 11 o’clock this morning says “for over 100 years the name Grangemouth has been synonymous with the refining industry, but the world has changed and the market in Scotland has been unable to support a Refinery”. Grangemouth no more.
All of Scotland’s petrol, diesel, and aviation fuel needs will still be met through Grangemouth, but they will all be imported from abroad. They will just be stored and distributed from Grangemouth.
The Proclaimers’ famous song is not just about the loss of heavy industry or the Highland Clearances, it is about people and the loss of livelihoods, and the breakdown of communities.
Closing Grangemouth oil refinery means the direct loss of 400 jobs and redundancies which will begin tomorrow. Many other contractors could lose their jobs too, some workers at Ineos are also facing redundancy because they were contracted to the refinery side of the business.
Above all, “Grangemouth no more” is hard for them to take.
Iain Hardie, Petroineos regional head of legal and external affairs, said: “Grangemouth refinery is no longer processing crude oil.
“Petroineos has invested £50m in creating a modern import and distribution terminal capable of receiving finished fuels by sea for onward distribution to customers around the country. From today, we will be importing all the products necessary to meet Scotland’s demand for transport fuels.
“We would like to pay tribute to the workforce here. Our colleagues have shown incredible commitment, dignity and resilience during months of uncertainty regarding the future of this facility, through the consultation period, phased shutdown and the start of refinery decommissioning.
“It has been a challenging period but their professionalism has ensured security of fuel supply to our customers across Scotland and beyond.”
Both the UK and Scottish governments had launched a plan to protect hundreds of jobs at the site.
The multi-million-pound Project Willow study determined it needed £3.5bn worth of private investment
The landmark report published last month looked at 300 potential projects that could ensure the future of Scotland’s largest industrial site, identifying nine that were “credible”.
The UK Government is offering £200m and the Scottish Government is backing it with £25m.
However, the plans would only create about 1,100 jobs – around half the number of posts at risk from the closure of the refinery.
Initial interest in the rescue plan has been “above expectations”, deputy first minister Kate Forbes said earlier this month.
“Both Scottish Enterprise and site owners Petroineos have confirmed that they’ve received numerous expressions of interest from numerous parties,” Forbes said.
Project Willow comes months after the refinery, operated by Petroineos, announced its closure and plans to convert into a fuel import and export terminal.
Petroineos claimed the changes were due to a continuing decline in profitability and the need for substantial new investment to keep the refinery running.
In response, the UK and Scottish Governments have been working with Petroineos and its shareholders to ensure a long-term future for the site.
The Project Willow feasibility report provides nine “credible” proposals likely to attract private investment, including plastics recycling, hydrogen production and other projects that could create up to 1,090 jobs by 2040.
The UK and Scottish governments say efforts will now focus on identifying partners and investors who, in collaboration, can bring these projects to life.
Scotland’s First Minster has said the end of oil refining at Grangemouth is a “very sad day for Scotland”.
“The end of refining at Grangemouth is a very sad day for Scotland,” John Swinney said in a post on X.
“This news is very damaging for workers and everyone in the area.
“The Scottish Government will work to secure a future for the Grangemouth community and agreement to the Acorn Carbon Capture project is essential.”
MPs discussed the closure in the Commons on Tuesday.
Brian Leishman, the Labour MP for Alloa and Grangemouth, said: “Today is the end of over a century of refining at Grangemouth.
“Scotland once again is a victim of industrial vandalism and devastation, and I don’t want anyone in this chamber to dare mention a ‘just transition’, because we all know that the Conservatives when in power and the SNP currently in Holyrood did nothing to avert this catastrophic decision happening”.
Leishman shook his head and shouted “not enough” as Energy Secretary Ed Miliband replied: “Grangemouth has a really important role in Scotland.
“What I would say to him and to others is this Government, as soon as it saw the situation it inherited, put money in to help the workers and has made this huge investment commitment of £200 million working hand-in-glove with the Scottish Government so we absolutely build a future in Grangemouth.”
Liberal Democrat MP Christine Jardine referred to remarks from Ineos chairman Sir Jim Ratcliffe, who said his company may have to pause investment due to high energy prices and carbon taxes.
Jardine said: “Today there are warnings from Grangemouth that they may have to pause important projects to switch to greener and more sustainable energies because of what they describe as the soaring energy bills and the pressures of income tax.”
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