Petroineos, a Joint Venture between INEOS and PetroChina, has announced its intention to cease refinery operations at Grangemouth and transition to a finished fuels import terminal and distribution hub during the second quarter of 2025, subject to consultation with employees.
Situated on the Firth of Forth on Scotland’s east coast, Grangemouth Refinery is the oldest of the six remaining refineries in the UK and the only refinery in Scotland. Grangemouth refining capacity stands at 150,000 barrels of crude oil per day.
A spokesman for Petroineos said that in the last week, the refinery has lost around 500,000 US dollars (£381,000) per day, and absorbed total losses of 775 million US dollars (£590 million): “it is hard to conceive that any owner would be able or willing to sustain losses on this scale indefinitely and in the face of competitive pressure from newer, more modern facilities across Europe and elsewhere in the world” the spokesperson added.
Other INEOS businesses at Grangemouth, namely INEOS O&P UK and INEOS FPS (Forties Pipeline System), will continue as normal delivering high quality services and products to customers and are largely unaffected by this change, Ineos stated.
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Sources: INEOS announcement, 12 Sep 2024 | The Westmorland Gazette, 13 Sep 2024
