A general view of the Grangemouth oil refinery, at Grangemouth, Scotland October 21, 2013. REUTERS/Russell Cheyne
PetroIneos said on Wednesday it will start work to shut down its Grangemouth oil refinery in Scotland to convert it into a fuels import terminal as it faces growing international competition.
The 150,000 barrels per day refinery, Scotland’s sole oil refinery and one of six in Britain, is expected to continue operating until spring 2025, PetroIneos said in a statement.
Although it is a major supplier of fuels to Scotland, the plant has faced significant challenges due to growing global competition, particularly from newly-built refineries in Asia and the Middle East.
“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,” Franck Demay, Chief Executive Officer at PetroIneos Refining, said in a statement.
“This does not change anything for our operation today, where it is business-as-usual at the Grangemouth refinery. We currently anticipate continuing refinery operations until Spring 2025.”
The company will also seek to convert its existing export terminal at Finnart, which is linked to Grangemouth by cross-country pipelines, into a diesel import facility.
PetroIneos is a 50-50 joint venture between petrochemicals giant Ineos and PetroChina (601857.SS). It also owns the Lavera refinery in southern France.
Reporting by Ron Bousso, Editing by Louise Heavens
