### Petroineos to Permanently Close the UK’s Oldest Refinery: A Shift Towards Sustainable Energy
In a significant move towards the global energy transition, Petroineos Refining Ltd. (PRL) has announced its decision to permanently close the Petroineos Manufacturing Scotland Ltd.’s 150,000-barrels-per-day (b/d) Grangemouth refinery complex in Scotland. The closure, set to take effect in the second quarter of 2025, marks a pivotal moment for the UK’s refining sector, which has been under increasing pressure from both global market dynamics and the shift towards low-carbon fuels.
#### Background and Context
Established in 1924, the Grangemouth refinery is not only the oldest but also Scotland’s sole oil refinery. However, over the past decade, the annual costs required to maintain the refinery’s operating license have consistently exceeded earnings. This financial strain, coupled with the decline in demand for conventional fuels due to the probable ban on new gasoline and diesel cars set to take effect in the coming years, has left the refinery unable to compete economically with more modern and efficient facilities in the Middle East, Asia Pacific, and Africa.
#### Transition Plan
PRL, a joint venture between INEOS Group’s Ineos Investments (Jersey) Ltd. (50.1%) and China National Petroleum Corp.’s PetroChina Co. Ltd. (PetroChina) subsidiary PetroChina International (London) Co. Ltd. (49.9%), is working towards transforming the Grangemouth site into a fuels import terminal and distribution hub. This transition plan aims to safeguard fuel supply for Scotland and leverage the site’s strategic location on the Firth of Forth.
“The action we are taking to create an import terminal will safeguard fuel supply for Scotland,” said Frank Demay, PRL’s chief executive officer. “We currently expect Grangemouth to be ready to operate as a national distribution hub for finished fuels by the second quarter of 202