Scotland’s only remaining oil refinery is due to cease operations by 2025 and become a fuel import terminal, in a move that could put hundreds of jobs at risk.
Petroineos, which owns the plant at Grangemouth near Falkirk, said the work to convert the refinery would take around 18 months to complete, with operations due to cease in “spring 2025”.
In a statement issued on Wednesday, the company said the facility would in the future mainly be used to import petrol, diesel, aviation fuel and paraffin to Scotland from vessels arriving via the Firth of Forth.
It is also planning to convert its existing export terminal at Finnart on the Firth of Clyde, which is linked to Grangemouth by cross-country pipelines, into a diesel import facility.
The original Grangemouth refinery was established almost a century ago in 1924 and was one of the first crude oil refineries in the UK. It is now one of only six crude oil refineries in the UK and the only one in Scotland.
Petroineos chief executive Franck Demay said: “As the energy transition gathers pace, this is a necessary step in adapting our business to reflect the decline in demand for the type of fuels we produce.
“As a prudent operator, we must plan accordingly, but the precise timeline for implementing any change has yet to be determined.
“This is the start of a journey to transform our operation from one that manufactures fuel products, into a business that imports finished fuel products for onward distribution to customers.
“Throughout this process, our focus will remain on the safe production and reliable supply of high-quality fuels to our customers in Scotland, the north of England and Northern Ireland.
“As we start to make this investment in preparing for a future transformation, we are equally committed to a regular programme of engagement with our colleagues about the changes we are making to our business.”
Scottish Conservative energy spokesman Douglas Lumsden said the news would be “devastating” for workers at Grangemouth and a “hammer blow for the local and national economy”.
“The hostile attitude shown towards Scotland’s oil and gas industry from the SNP-Green Government – as well as Keir Starmer and Labour’s betrayal of the sector – will have been a factor behind this decision,” he claimed.
“They all fail to recognise the need for oil and gas – such as the refinery at Grangemouth – to be part of Scotland and the UK’s energy mix for years to come.”
Sharon Graham, Unite general secretary, said: “This proposal clearly raises concerns for the livelihoods of our members – but also poses major questions over energy supply and security going forward.
“Unite will leave no stone unturned in the fight for jobs and will hold politicians to account for their actions.”
The union’s Scottish secretary Derek Thomson said it was engaging with Petroineos and that “every option must be on the table” to secure workers’ jobs, calling on both the UK and Scottish Governments to get involved in the talks.