**Petroineos to Permanently Close UK’s Oldest Refinery: A Strategic Shift in the Oil and Gas Industry**
In a significant move that signals the ongoing transformation of the global energy landscape, Petroineos Refining Ltd. (PRL) has announced the permanent closure of its 150,000 barrels per day Grangemouth refinery complex in Scotland. This decision, set to take effect in the second quarter of 2025, marks a pivotal moment in the history of the UK’s refining sector and underscores the escalating pressures facing traditional crude oil refineries.
### The Context of Closure
The Grangemouth refinery, situated on the Firth of Forth, has been a cornerstone of Scotland’s energy infrastructure since 1924. However, a confluence of global market pressures and the global energy transition has made it increasingly challenging for the refinery to compete economically with more modern and efficient facilities in the Middle East, Asia Pacific, and Africa. The decline in demand for key fossil-based fuels, compounded by the probable ban on new gasoline and diesel cars, has further exacerbated the financial strain on the refinery.
“We are taking a strategic decision to ensure the long-term sustainability of Scotland’s fuel supply,” said Frank Demay, CEO of PRL. “By transitioning Grangemouth into a national distribution hub for finished fuels, we aim to safeguard fuel supply while positioning the facility for future low-carbon fuel opportunities.”
### Transition to a Low-Carbon Fuels Hub
In tandem with the closure announcement, PRL revealed plans to transform the site into a crucial import terminal and distribution hub for finished fuels. This transformation aims to mitigate the immediate impacts of job losses, with approximately 400 of the 475 current employees set to be affected. Despite this setback, INEOS has pledged to continue its petrochemical operations and pipeline management at the Grangemouth complex, ensuring that the site remains operational in various capacities.
“Ineos remains committed to the long-term success of Grangemouth,