UK and Scottish governments ‘sleepwalking’ on future of Grangemouth refinery

Both of Scotland’s governments have been accused of “sleepwalking towards disaster” on protecting the future of Scotland’s only oil refinery.

Scottish Labour have urged the UK and Scottish governments to get around the table to discuss the future of the Grangemouth refinery.

Petroineos – a joint venture between PetroChina and Ineos – confirmed last year that the complex would operate as normal until at least spring 2025, when it would be transitioned to an oil import terminal.

Daniel Johnson, economy spokesman for Scottish Labour asked the Scottish Government’s energy minister Gillian Martin in Holyrood to confirm what discussions were being held on the future of the site.

Ms Martin said ministers were engaging “constructively” with the business.

But Mr Johnson has now written to PetroChina to ask for a meeting to discuss the yard’s future.

He accused the Scottish Government of being too distracted by “infighting”, while also urging the UK Government to take more action.

He said: “Grangemouth is one of Scotland’s key strategic assets, but neither of Scotland’s governments seem to be serious about protecting its future.

“Both the SNP and the Tories are sleepwalking towards disaster and workers are set to pay the price.

“The SNP is mired in chaos and scandal, and it is too busy infighting to deliver for the workers at Grangemouth or the people of Scotland.

“The jobs, skills and infrastructure the site provides are central to Scotland’s economy and they will be key to unleashing Scotland’s clean energy potential.

“Scottish Labour will stand up for workers at Grangemouth and leave no stone unturned in the fight to save these jobs.”

He said his party’s plans would make the refinery “home to the industries of the future”, by creating a decarbonisation hub and linked carbon capture and storage project.

“Both of our governments must get round the table to discuss both urgent action and a real long-term plan to keep Grangemouth working,” Mr Johnson added.

A Scottish Government spokesman said: “The Grangemouth site and its workforce are crucial to Scotland’s economy and our transition to net zero.

“The Scottish Government is committed to working collaboratively with Petroineos, UK ministers and Unite the Union to explore the options available to accelerate new employment opportunities.”

A spokesman for the UK Government’s Department for Energy Security and Net Zero said: “The UK Government will always back the North Sea oil and gas sector and green industries, such as offshore wind and carbon capture and storage, to protect our energy security, attract investment and create opportunities for communities in Scotland and across the UK.

“Ultimately this is a commercial decision for the refinery owners, Petroineos. However, we know this is a concerning time for workers and their families, and are working closely with Grangemouth refinery on the long-term future of the site and how they are supporting staff.”