John Swinney 'looking away' as Scotland set to become only major oil producer with no refinery

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John Swinney has been accused of "looking away" as Scotland is set to become the only major oil producing nation in the world without a refinery.

The First Minister was pressed today about his Government's support for the Grangemouth industrial complex as owners Petroineos proceed with plans to cease refining operations by spring next year, with more than 400 skilled jobs at risk.

Alba MSP Ash Regan claimed Swinney had "accepted defeat" and the country was now set to lose "key national infrastructure".

But the SNP leader insisted he was in favour of the working life of the refinery being extended - and warned of the "economic damage" if it was closed down prematurely.

It comes after Unite the union this week questioned financial statements produced by the owner of the refinery.

According to the firm – a joint venture between PetroChina and Ineos – the refining operation was losing up to £385,000 per day earlier this month and was on track for a £150 million loss this year.

But Derek Thomson, Unite Scotland regional secretary, told MSPs this week he believed the site was “a relatively profitable and financially healthy operation”.

Speaking at First Minister's Questions, Regan blasted: "It's beginning to look like the First Minister has accepted defeat on Scotland ever becoming an independent country, as under his watch, Scotland will become the only top 25 oil producing nation with no refining capacity.

"How has it come to this? A Nationalist Government looks away, helpless, as key national infrastructure is lost forever."

Swinney responded: "I'm actively pursuing an option to maintain the refining capacity at Grangemouth. If that needs to be stated again to Parliament, I will.

"I think economic damage will be done if there is not an intervention to prolong the refinery life cycle at Grangemouth. If we do that, we have the opportunity to secure carbon capture and storage, and opportunities through Project Willow.

"Let there be no doubt about, the Scottish Government is actively pursuing these opportunities to protect the workers at Grangemouth.

SNP MSP Michelle Thomson, whose constituency includes Grangemouth, had earlier asked if the First Minister was committed to securing a "pause" on the refinery's closure.

Swinney replied: "The Scottish Government believes the closure announcement for the refinery is a premature decision, and it accelerates a change that does not need to take place at this stage, but could be managed over a number of further years.

"Michelle Thomson asked if I would support a pause in any plans to close the refinery, and I do.

"We will continue to work with the UK Government, and with the company, to try to avoid economic disruption and damage to the Grangemouth area, and especially to the livelihoods of the workers involved."

Petroineos plans to convert the refinery into a fuels import terminal. The adjacent petrochemical plant at Grangemouth will continue as normal.

The energy giant has previously said it has received no "credible" bids from third parties to buy the refinery.

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