**Petroineos Decides to Permanently Close the UK’s Oldest Refinery, Grangemouth**
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 announced the permanent closure of its 150,000-b/d Grangemouth refinery complex located on the Firth of Forth in Scotland. This decision, effective in Q2 2025, marks a significant change in the operations of Petroineos Manufacturing Scotland Ltd. and is driven by the collision of global market pressures and the ongoing energy transition.
### The Economic Challenges Facing Grangemouth
The Grangemouth refinery, operational since 1924, has been struggling to compete economically with more modern and efficient refineries in the Middle East, Asia Pacific, and Africa. The refinery’s high annual costs for core maintenance and repairs, which have consistently exceeded earnings over the past decade, have heavily impacted its viability. These challenges are further compounded by the dwindling demand for fossil-based fuels, particularly with the looming ban on new gasoline and diesel cars in the coming years.
### Transition to an Import Terminal
Petroineos has finalized plans to transform the Grangemouth site into a finished fuels import terminal and national distribution hub. This transformation is part of a broader strategy to ensure the continued fuel supply for Scotland, despite the declining regional demand for key fuels produced at the site. The company emphasizes that this new role will safeguard fuel supplies and position the site as a critical component of Scotland’s energy security.
### Impact on Employment and Local Economy
The closure of the Grangemouth refinery will result in a net reduction of approximately 400 jobs from its current workforce of 475 employees, significantly affecting the local economy. UK unions, including Unite, have