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Plans unveiled by Petroineos, the owners of Scotland's sole oil refinery, suggest the potential shutdown of the facility by 2025. The company cited significant challenges stemming from global

market pressures as the driving force behind this decision.

Petroineos aims to repurpose the Grangemouth site into a fuels import terminal, a transformation anticipated to span 18 months. Approximately 500 individuals are directly employed at Grangemouth, and Petroineos indicated collaboration with various stakeholders, including the Scottish and UK governments, in the execution of this project.

Franck Demay, CEO at Petroineos Refining, emphasized that current operations remain unaffected but acknowledged the necessity to adapt their business model amid the escalating energy transition. Demay remarked that the company intends to evolve from fuel production to importing finished fuel products for distribution to customers, aligning with the evolving market demand.

Established in 1924, the Grangemouth refinery holds a century-long legacy in oil operations, tracing back to 1919. Ineos, owned by Jim Ratcliffe, acquired Innovene, the former owners of the Grangemouth site, in a £5 billion takeover in 2005.

While Ineos exclusively owns the petrochemical plant, the refinery is jointly owned by Petroineos—a venture shared between Ineos and PetroChina. Notably, plans were previously outlined in 2019 to erect a £350 million energy plant at the Grangemouth site, forming part of a £1 billion investment in the UK's oil and chemical sectors.

The refinery's impact is substantial, contributing around 4% to Scotland's GDP and approximately 8% to its manufacturing sector. It serves as a vital supplier of aviation fuel to Scotland's key airports, alongside being a primary provider of ground fuels like petrol and diesel across the Central Belt. Furthermore, the expansive 1,700-acre site furnishes 70% of fuel to filling stations in Scotland, Northern Ireland, and the northern regions of England. Additionally, it powers the Forties oil pipeline, crucial for transporting oil and gas from the North Sea. Photo by User:John, Wikimedia commons.