Grangemouth refinery closure will put Scotland's energy security 'in jeopardy', MSPs warned

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The looming closure of the Grangemouth oil refinery places Scotland's energy security "in jeopardy", MSPs have been warned.

More than 400 highly-skilled jobs will be lost when refining operations on the Forth end in spring 2025 after more than a century.

But Unite the union today questioned whether the plan to covert the site into a fuels import and export terminal would prove robust given the level of political uncertainty around the world.

Derek Thomson, Unite Scottish regional secretary, said: "If we don't have the ability to refine here, and something goes wrong, we are then reliant on other countries".

Speaking at a meeting of the Scottish Parliament economy committee, he said it was "safer and more secure" to rely on a refinery in Scotland than on imports from overseas.

Unite is one of two unions representing workers at threat of redundancy at Grangemouth. It has repeatedly questioned owners Petroineos over claims the refinery is losing too much money to remain open.

The refinery is a joint venture between Ineos, the energy giant controlled by Jim Ratcliffe, and the Chine state-owned firm PetroChina.

SNP MSP Michelle Thomson, whose constituency includes Grangemouth, asked whether "issues around energy security" had been "factored into the decision" to cease refining operations.

The Unite chief replied: "Our biggest concern is, if we close our own refinery, is where do we start importing those fuels from?

"Kenny MacAskill, when he was an MP, submitted a question to the UK Government on where the crude oil was coming from. And they couldn't provide an answer.

"Reference has been made to PetroChina potentially being the biggest importer of anything to do with sustainable air fuel.

"But to me, handing over our energy security to PetroChina, which is effectively a state-run company, puts in jeopardy our own energy security.

"It's almost saying we're handing over our oil and petrol supply to someone else, which I think its foolish, given the geopolitical situation could escalate at any term.

"The fundamental question for the UK and Scottish Governments - do you want to rely on imported fuel, or do you want to build your own sustainable fuel in Scotland and the UK?

"There are commitments from Petroineos that they will maintain supply, but that's in the current geopolitical situation, but if that changes, where does our energy security sit?

"Our concerns are around the fact that importing oil puts us in jeopardy. If we don't have the ability to refine here, and something goes wrong, we are then reliant on other countries."

Thomson added: "We do not have any information over where that finished product comes from. Does it come from Africa, where does it start its process? So there is an environmental impact when it comes to the transportation of fuels.

"But is it safer, is it more secure to refine it here? Absolutely."

Petroineos revealed earlier this week it had turned an approach from a prospective buyer for the refinery.

A spokesman said: "Since the Petroineos joint venture was formed 13 years ago, our shareholders have invested nearly £1bn in the refinery, only to absorb losses of £600m.

"Last week, the refinery lost £385,000 on average each day and we expect to lose more than £150m in total during the course of this year.

"We have not received any credible or viable bids for the refinery."

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