**Petroineos Announces Permanent Closure of UK’s Oldest Refinery**
In a significant move that will reshape the energy landscape in the UK, Petroineos Refining Ltd. has announced the permanent closure of its 150,000-barrel-per-day Grangemouth refinery complex in Scotland by the end of the second quarter of 2025. This decision, formalized in a joint statement by Petroineos and INEOS, marks the end of an era for the UK’s oldest refinery.
The closure is attributed to a combination of global market pressures and the ongoing energy transition. In an increasingly competitive global market, the 1924-built Grangemouth refinery has struggled to maintain profitability. Annual maintenance and repair costs have consistently exceeded earnings, and the looming ban on new gasoline and diesel cars further exacerbates demand for conventional products at the site. The transition plan aims to transform the existing refinery infrastructure into a fuel-import terminal and distribution hub, effectively safeguarding fuel supply for Scotland.
“This initiative will ensure a continued fuel supply for Scotland and position Grangemouth as a strategic distribution hub for finished fuels,” said Frank Demay, CEO of Petroineos Refining Ltd. “We anticipate Grangemouth to be operational as a national distribution hub for finished fuels by the second quarter of 2025.”
INEOS has reassured stakeholders that its separate businesses within the Grangemouth complex, including INEOS O&P UK’s petrochemical plants and INEOS FPS’s land and processing operations for the Forties pipeline system, will continue unaffected. INEOS remains committed to the site’s long-term future, aiming to deliver net zero operations by 2045.
Contrasting somewhat with the broader industry trend, Petroineos is simultaneously exploring opportunities to transform Grangemouth into a low-carbon fuels hub. In collaboration with the UK and Scottish governments, the company is undertaking a feasibility study for the Project Willow initiative. This project aims to assess various low-carbon opportunities such as manufacturing sustainable aviation