Scotland’s only crude oil refinery at Grangemouth has stopped processing crude oil after 100 years, as planned by its owners.
Petroineos, which owns the refinery, announced in September 2024 that it would close the crude processing unit. The company struggled to compete with newer, larger refineries in Asia, Africa, and the Middle East.
Starting in the second quarter of 2025, Petroineos will convert the site into a fuels import terminal and distribution center, pending employee consultations.
“Grangemouth refinery is no longer processing crude oil,” said Iain Hardie, regional head of legal and external affairs. “From today, we will import all products needed to meet Scotland’s transport fuel demand.”
The refinery opened in 1924 under BP’s predecessor and later expanded into petrochemicals. It had a refining capacity of 150,000 barrels per day but could not keep up with massive new facilities abroad.
The closure led to 430 job losses, though about 70 workers will stay on to manage fuel imports.
Sir Jim Ratcliffe, owner of INEOS and one of the UK’s wealthiest businessmen, urged the government to reduce carbon taxes on energy-heavy industries. INEOS faces $20.1 million in costs under the UK Emissions Trading System.
Ratcliffe warned that carbon taxes and high energy prices are harming UK manufacturers, increasing reliance on imports and, ironically, raising emissions.
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