Petroineos who own Scotland’s only oil refinery in Grangemouth have announced that operations will stop in spring 2025 putting hundreds of jobs at risk.
Petroineos said they have been hit with “significant challenges” amid global marker pressures and they are now aiming to transform Grangemouth into a fuels import terminal.
They are working closely with a “range of interested parties” of the project which includes the Scottish and British governments.
Franck Demay, CEO of Petroineos Refining, said, “This does not change anything for our operation today, where it is business-as-usual at the Grangemouth refinery. We currently anticipate continuing refinery operations until spring 2025.
“As the energy transition gathers pace, this is a necessary step in adapting our business to reflect the decline in demand for the type of fuels we produce.
“As a prudent operator, we must plan accordingly, but the precise timeline for implementing any change has yet to be determined.”
Demay added, “This is the start of a journey to transform our operation from one that manufactures fuel products, into a business that imports finished fuel products for onward distribution to customers.
“Throughout this process, our focus will remain on the safe production and reliable supply of high-quality fuels to our customers in Scotland, the north of England, and Northern Ireland.
“As we start to make this investment in preparing for a future transformation, we are equally committed to a regular programme of engagement with our colleagues about the changes we are making to our business.”
Unite general secretary Sharon Graham said: “This proposal clearly raises concerns for the livelihoods of our members but also poses major questions over energy supply and security going forward.
“Unite will leave no stone unturned in the fight for jobs and will hold politicians to account for their actions.”