### Petroineos Set to Permanently Close UK’s Oldest Refinery
Petroineos Refining Ltd., a joint venture between INEOS Group’s Ineos Investments (Jersey) Ltd. and China National Petroleum Corp.’s PetroChina Co. Ltd. subsidiary PetroChina International (London), has announced the permanent closure of Petroineos Manufacturing Scotland Ltd.’s 150,000-barrel-per-day Grangemouth refinery complex on the Firth of Forth in Scotland. The decision is set to be finalized by second-quarter 2025, marking an end to the site’s over a century-long operation.
The closure stems from a combination of global market pressures and the global energy transition. The refinery, which has been in operation since 1924, is facing significant challenges in competing with more modern and efficient sites in the Middle East, Asia Pacific, and Africa. Annual costs for core maintenance and repairs required to maintain the refinery’s operating license have consistently exceeded earnings over the past decade.
Petroineos and INEOS confirmed that the decision results from the intersection of these global pressures and the declining demand for key fossil-based fuels produced at the site. The probable ban on new gasoline and diesel cars in the coming years will further slash demand for conventional products, rendering the refinery economically non-viable.
### Transformation Plan
Pending consultation with employees and their representatives, Petroineos plans to cease all conventional crude processing operations at the Grangemouth refinery and transition the site into a finished fuels import terminal and distribution hub. This transformation aims to safeguard fuel supply for Scotland and ensure the site’s operational viability in the face of the ongoing energy transition.
Frank Demay, CEO of Petroineos, emphasized, “The energy transition is happening now, and it is happening here. Demand for key fuels we produce at Grangemouth has already started to decline, and with a ban on new petrol and diesel cars due to come into force within the next decade, we foresee that the market for