Scottish Government Expresses Commitment to Prolong Grangemouth Refinery Operations Amid Uncertainty
Posted 24/11/2023 13:36
The Scottish Government has declared its intent to support the continuity of operations at the Grangemouth oil refinery for as long as possible, following recent indications from Petroineos about the potential transition of the site into a sole import terminal by 2025. Energy Secretary Neil Gray assured workers that the government would collaborate with all stakeholders to alleviate the potential impact on jobs.
While updating Members of the Scottish Parliament (MSPs), Gray clarified that the decision by Petroineos was related to global factors and not influenced by actions of either the UK or Scottish governments. He emphasized that the move was part of preparations to potentially shift Grangemouth into an import terminal, not an immediate decision to close the refinery.
Gray has sought talks with the UK's Energy Security Secretary, Claire Coutinho, on the matter and expressed the government's preference for the refinery to continue operating. He acknowledged the uncertainty and anxiety among the workforce and assured MSPs that a just transition plan for Grangemouth would be published in spring, with proactive engagement with Petroineos.
The potential impact of the decision on Grangemouth, a town already grappling with social deprivation, was highlighted by Falkirk East MSP Michelle Thomson. Gray acknowledged the challenges and committed to mitigating the impact through collaborative efforts.
Scottish Tory energy spokesman Douglas Lumsden accused the Scottish Government of casting a negative light on the oil and gas industry, while Gray responded that Petroineos had clarified the decision was not influenced by government actions.
The Scottish Government's commitment to support Grangemouth's continued operation aligns with its goal to publish a just transition plan for the site. The government is exploring all possible avenues of support, but Gray cautioned against alarmist narratives.
The Just Transition Commission expressed deep concern, stating that ceasing operations at Scotland's only oil refinery runs counter to a just transition to a low-carbon economy. The Commission fears potential negative effects on communities, echoing past unmanaged industrial transitions in coal and steel.
Petroineos did not provide additional comments on the matter. The Department for Energy Security and Net Zero assured it was seeking assurances from Grangemouth regarding employee support and the long-term future of the site, expressing confidence in fuel supply and emphasizing the government's commitment to backing the North Sea oil and gas sector and green industries.