Petroineos is set to shut down its Grangemouth oil refinery in Scotland to convert it into a fuels import terminal as it faces growing international competition.
The 150,000 barrel per day refinery, Scotland's only oil refinery and one of six in Britain, is expected to continue operating until spring 2025, PetroIneos said in a statement.
Although it is a major supplier of fuels, such as petroleum, diesel and aviation fuel to Scotland, the plant has faced significant challenges due to growing global competition, particularly from newly-built refineries in Asia and the Middle East.
PetroIneos said it is also evaluating a range of low-carbon opportunities for Grangemouth, including the feasibility of a bio-refinery facility on the site.
PetroIneos is a 50-50 joint venture between petrochemicals giant Ineos and PetroChina. It also owns the Lavera refinery in southern France.
ranck Demay, the chief executive of Petroineos Refining, said: “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.
“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.”
Grangemouth oil refinery set to shut down
