Unite union seeks talks with Sturgeon over Grangemouth refinery

Union says oil refinery’s ‘strategic importance’ means talks about possible threats are urgent

Trade union bosses are seeking an urgent meeting with Scottish first minister Nicola Sturgeon amid uncertainty surrounding the future of the Grangemouth oil refinery.

Grangemouth is one of just six oil refineries in Great Britain and supplies two-thirds of the petrol and diesel for forecourts in Scotland as well as large volumes for the north of England and Northern Ireland.

Located at Falkirk in Scotland, it is owned by Petroineos, a joint venture formed in 2011 between the state-owned Chinese oil giant PetroChina and Ineos, part of the billionaire Jim Ratcliffe’s petrochemical empire.

City sources have said PetroChina is keen to sell its stake. However, there are fears that the business could fall into administration if a buyer is not found.

PetroChina is responsible for most of the financing requirements at the refinery, which made significant losses during the pandemic as oil demand collapsed. The Unite union has asked for meetings with Sturgeon and Alister Jack, the secretary of state for Scotland, to discuss the situation and whether the government might need to intervene to save jobs.

About 2,000 people are employed at the Grangemouth site including 600 within the refinery itself. Refining has taken place at Grangemouth since 1919.

Pat Rafferty, Scottish secretary of Unite, said the union has been informed that there is “no threat of sale or significant restructuring”. But he added: “We believe that in light of the strategic national importance of the site to the UK’s energy needs, and in the context of reducing our exposure to Russia, it would be diligent to assess potential scenarios that involve changes to the Grangemouth oil refinery.”

In November 2020, Grangemouth scaled back its capacity from processing 210,000 barrels a day to 150,000.

Petroineos Manufacturing Scotland took a £44.7m impairment charge as a result. In its latest accounts, losses grew to £89.9m in 2020, from a loss of £26.1m in 2019.

Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

In last week’s Queen’s speech, the government moved to adopt the draft Downstream Oil Resilience Bill, which grants the state the power to step in if there are signs that there could be disruption to fuel supplies.

Rafferty added: “Any developments at Grangemouth would fall under the domain of these draft powers. The Scottish government also has a major role to play in these potential scenarios in relation to Grangemouth, which is why we have requested engagement with the first minister and the secretary of state for Scotland to discuss alternative scenarios, and what this could entail in terms of government support.”

Petroineos could not be reached for comment.

Contributor

Alex Lawson Energy correspondent

The GuardianTramp

Related Content

Article image
Job losses at Grangemouth prompt Unite union to cry betrayal
Union furious because workers accepted poorer conditions in October after Ineos threatened to close plant

Sean Farrell

02, Dec, 2013 @4:22 PM

Article image
Grangemouth oil refinery owner tells workers they face D-day
Ineos demands 1,300 staff accept pension and job cuts plus loss of trade union bargaining rights to keep plant open

Sean Farrell

17, Oct, 2013 @6:30 PM

Article image
Grangemouth plant operator Ineos drops libel action against Unite union
Company had sued union chiefs over comments made about its owner Jim Ratcliffe in early stages of dispute over oil refinery

Sean Farrell

31, Jan, 2014 @4:39 PM

Article image
Grangemouth oil refinery 'faces permanent closure'
Ineos, the plant's owner, insists it is not bluffing as deadline looms; 250 employees from workforce of 1300 accept changes

Dan Milmo and Simon Goodley

20, Oct, 2013 @7:06 PM

Article image
Scottish government seeks buyer for Grangemouth oil refinery
Grangemouth's 1,370 staff are waiting to find out if owner Ineos will follow through with a threat to close the refinery permanently

Sean Farrell

22, Oct, 2013 @5:37 PM

Article image
Grangemouth oil refinery shuts as owners refuse to back down in dispute
Dispute over pensions divides owner Ineos and the Unite union; Scottish secretary says 'stakes are exceptionally high'

Sean Farrell

16, Oct, 2013 @7:02 PM

Article image
Grangemouth oil refinery to shut down, raising concern for 500 jobs
Plans by Petroineos to convert facility to an import terminal spark questions for Scottish economy and UK refining capacity

Rob Davies

22, Nov, 2023 @5:26 PM

Article image
Grangemouth union to meet Ineos in bid to save petrochemicals plant
Unite says it has made a number of recommendations to management, as closure threatens thousands of jobs

Haroon Siddique

24, Oct, 2013 @7:02 AM

Article image
Grangemouth plant shutdown leaves government fighting to save 800 jobs

Petrochemicals workers will lose their jobs after abrupt closure, with 2,600 refinery employees and contract staff at risk

Sean Farrell, Rowena Mason and agencies

23, Oct, 2013 @9:39 PM

Article image
BP to axe 1 in 5 North Sea jobs as oil giant cuts 4,000 staff worldwide
Energy giant blames persistently low Brent crude price for major reduction in exploration and production jobs but has no plans to close any UK oil rigs

Julia Kollewe and Severin Carrell in Scotland

12, Jan, 2016 @6:01 PM