Grangemouth Refinery to Close in 2025, 400 Jobs at Risk
Grangemouth, Scotland’s only oil refinery, is set to shut down in 2025, resulting in the loss of 400 jobs, according to operator Petroineos. The closure, reported by Reuters, marks the end of operations at Britain’s oldest refinery, which will cease production in the second quarter of next year, pending employee consultations.
The announcement comes as Nigeria’s Dangote refinery begins production, significantly reducing the global demand for imported Premium Motor Spirit (PMS). Petroineos, a joint venture between PetroChina International London and INEOS Group, attributed the decision to ongoing economic challenges and increased competition from larger, more efficient refineries in the Middle East, Asia, and Africa.
Since 2011, Petroineos has invested $1.2 billion into the Grangemouth site, but it has faced financial losses exceeding $775 million over the same period. The company revealed that the refinery is currently losing around $500,000 daily and is projected to incur a $200 million loss in 2024.
In response to the closure, the site will transition into an import and distribution terminal for finished fuels, reducing the workforce from 475 to around 75 employees over the next two years.
UK Energy Secretary Ed Miliband expressed disappointment over the decision, echoing concerns from trade unions and local politicians.
The Dangote refinery’s recent launch is expected to have a significant impact on global fuel import patterns, with analysts predicting further closures of European refineries as Africa ramps up domestic refining capacity. Meanwhile, Nigeria is also focusing on reviving its state-owned refineries in Port Harcourt, Kaduna, and Warri to strengthen its domestic fuel production.
