Scotland's only oil refinery, the Grangemouth plant, ceased processing crude oil on Tuesday after a century of operation, resulting in the loss of 400 jobs. The site, which opened in 1924, will now import finished transport fuels such as petrol and diesel, according to its owners Petroineos.
The shutdown was confirmed in an email to staff just hours before the Scottish Government held a debate on supporting Scottish industry. The Scottish Conservatives described it as a 'dark day' for the nation, blaming 'Labour and the SNP's hostility to oil and gas'. Local Labour MP Brian Leishman criticised his own government, calling the closure 'industrial vandalism'.
Petroineos, a joint venture between PetroChina and Sir Jim Ratcliffe's Ineos, announced last September its intention to close the loss-making plant by summer 2025. The refinery supplied fuel to 70 per cent of Scotland's filling stations and was one of only six in the UK.
Efforts to transition the site to green jobs include Project Willow, a plan to create up to 800 jobs by 2040, requiring £3.5 billion in private investment. However, the Unite union accused both the Scottish and UK governments of having 'utterly failed' workers. First Minister John Swinney had called for nationalisation, but Petroineos proceeded with the closure, stating politicians were warned five years ago.
Other parts of the Grangemouth complex, including the Forties pipeline system, remain unaffected. The wider site employs around 2,000 people and supports thousands more indirect jobs.
