**Petroineos Announces Permanent Closure of Grangemouth Refinery, Shaping the Future of UK’s Oil and Gas Industry**
In a significant move that has been months in the making, Petroineos, a joint venture firm involving INEOS Group and China National Petroleum Corporation (PetroChina), has decided to permanently close its 150,000 barrels per day Grangemouth refinery in Scotland. This decision marks the end of an era for what has been the UK’s oldest operational refinery since its inception in 1924.
### Key Points on the Closure:
1. **Global Market Pressures and Energy Transition**: The refinery’s operational viability has been compromised by a confluence of global market pressures and the ongoing energy transition. The integration of more modern and efficient refining operations in the Middle East, Asia Pacific, and Africa has significantly lowered the competitive edge of the Grangemouth facility.
2. **Financial Challenges**: The refinery has faced persistent financial strain due to the escalating costs associated with maintaining the site’s operational licenses. These costs have consistently surpassed earnings over the past decade, further reinforcing the necessity for drastic action.
3. **Environmental and Regulatory Pressures**: The impending ban on new gasoline and diesel cars in the coming years is anticipated to drastically reduce the demand for conventional petroleum products, exacerbating the financial challenges faced by the facility.
4. **Transition Plan**: In response to these pressures, Petroineos has outlined a transition plan aimed at converting the refinery into a finished fuels import terminal and distribution hub. This transformation is expected to be completed by the second quarter of 2025, ensuring continuous fuel supply to Scotland while streamlining operations to meet emerging demand.
### Impact on Local Economy and Employment:
1. **Job Losses**: Approximately 400 out of the current 475 employees at the Grangemouth facility will lose their jobs as a direct result of the refinery’s closure. This substantial displacement raises concerns about the local economy