### Petroineos to Permanently Close UK’s Oldest Refinery
In a significant move that underscores the evolving landscape of the global energy sector, Petroineos Refining Ltd. (PRL) has announced the permanent closure of the Grangemouth refinery complex in Scotland. This decision marks the end of a long chapter in the history of UK’s oil refining industry.
#### Context of the Closure
PRL, a joint venture between INEOS Group and PetroChina, cited the confluence of global market pressures and the ongoing energy transition as the primary reasons for this decision. The Grangemouth refinery, which has been operational since 1924, has struggled to maintain economic viability due to its outdated infrastructure and the increasing competitiveness from more advanced and efficient refineries in regions such as the Middle East, Asia Pacific, and Africa.
#### Financial Challenges and Operational Transition
Over the past decade, annual maintenance and repair costs for the refinery have consistently exceeded earnings. Furthermore, the impending ban on new gasoline and diesel cars in the coming years has further diminished demand for conventional fossil-based fuels produced at the site. These financial strain and declining demand have prompted PRL to reassess its operations.
PRL plans to cease conventional crude processing operations at the Grangemouth refinery by the second quarter of 2025. Following this closure, the site will be transformed into a finished fuels import terminal and distribution hub. This new configuration aims to safeguard fuel supply for Scotland, ensuring a stable energy infrastructure amidst ongoing industry transformations.
#### Impact on Employment and Future Directions
The proposed transition plan will result in approximately 400 job losses among the refinery’s current 475 employees. However, INEOS has emphasized that its separate businesses at Grangemouth, including petrochemical plants and pipeline operations, will continue unaffected. INEOS remains committed to a long-term successful future for the site, with a goal of delivering net zero emissions by 2045[