Scottish and UK government ministers to discuss future of Grangemouth oil refinery

Scottish and UK government ministers are meeting on Thursday to discuss the future of the Grangemouth refinery.

Petroineos, which owns the plant, announced last year the refinery will become a fuel import terminal.

First Minister Humza Yousaf said the scale of job losses could be “quite significant”.

On Thursday, ministers will join representatives from Falkirk Council, as well as union officials and industry leaders, to discuss future plans for Grangemouth.

The forum will be chaired by energy secretary Neil Gray.

He said: “The establishment of this forum responds to calls from the Just Transition Commission for Petroineos, the UK Government and the Scottish Government to engage fully and in good faith with workers and the community at Grangemouth and the surrounding area, and create a credible just transition plan that ensures employment levels and economic activity within the community are protected.

“These are missions that I hope we can all collectively support, and which the Scottish Government stands ready to deliver.”

“I believe we can collectively work to ensure that there is a positive future for the site, for the workforce and for Scotland’s economy.

“The Scottish Government is committed to ensuring a just transition for Grangemouth. The future of the refinery will play an important part in that and we recognise that we cannot do this alone.

“That is why I am today convening this critical meeting.”

It was announced last year that the Grangemouth refinery would close and transition to becoming an oil import terminal, sparking fears for hundreds of jobs.

Petroineos said the refinery is “highly inefficient” and it cannot continue to run at a loss.

However, it will operate until at least spring 2025 and other parts of the Grangemouth complex – such as the Forties pipeline system which brings in North Sea oil and gas – will continue.

Petroineos said around 500 workers are employed at the site and a number of employees will remain following the move to an import-only terminal.

The firm is also currently assessing a number of green opportunities for the site, it has said, including a bio-refinery.

John Lamont, UK Government minister for Scotland, said: “This is a difficult time for those workers who are facing uncertainty, along with their families, and the communities around the refinery.

“The repurposing of Grangemouth Future Industry Board is an opportunity for the UK and Scottish governments to come together with representatives from Petroineos, and the local area as we seek assurances on how employees are being supported and explore how the long-term future of the site will continue to contribute to the local economy.

“We will continue to work with the Scottish Government and partners to deliver the Forth Freeport, which includes Grangemouth, and has the potential to create 50,000 high quality jobs while also helping to drive our transition to net zero.”