### Petroineos Announces the Permanent Closure of the UK’s Oldest Refinery
Petroineos Refining Ltd., 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%), has made the significant decision to permanently close its 150,000-barrel-per-day (b/d) Grangemouth refinery complex in Scotland. This decision was confirmed on September 12, 2024, and is set to be executed by the second quarter of 2025.
The Grangemouth refinery, which has been operational since 1924, is about to cease all conventional crude processing operations. Following the closure, the site will be transformed into a finished fuels import terminal and distribution hub. This transformation is a response to the global market pressures and the ongoing energy transition, which have made it impossible for the aging refinery to competitively operate due to higher operational costs and limited demand for traditional fossil-based fuels. The probable ban on new gasoline and diesel cars in the coming years will further reduce the demand for the conventional products produced at the site.
This decision does not impact all activities at Grangemouth. INEOS businesses operating at the site, including INEOS O&P UK’s petrochemical plants and INEOS FPS’s land and processing operations for the Forties pipeline system, will continue as normal with minimal disruption. INEOS remains committed to the long-term success of the Grangemouth site, with a goal of achieving net zero emissions by 2045.
Petroineos has also been working with the UK and Scottish governments to transform Grangemouth into a low-carbon fuels manufacturing hub. As part of this initiative, an initial feasibility study for the proposed Project Willow has been conducted. This study evaluated various low-carbon opportunities, including sustainable aviation fuel (SAF