A century-old refinery, shut down!
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Scotland’s only oil refinery has been permanently shut down as planned, after 100 years of operation. Last September, Petroineos, the owner of the Grangemouth refinery in Scotland, announced that it planned to close the facility due to high operating costs, as it was unable to compete with newly built large-scale refineries around the world. On April 29, Petroineos said that the Grangemouth refinery, with a production capacity of 150,000 barrels per day, has stopped processing crude oil; the facility will be converted into an import terminal and distribution center for finished fuels in the second quarter of 2025. The Grangemouth refinery was established in 1924 by the predecessor of BP, and began producing petrochemical products in the 1950s. The plant used to be responsible for supplying about 70% of Scotland’s fuel, and this move will lead to a growing deficit in British petroleum products. In recent years, the UK has successively closed refineries such as those in Billingham, Corryton, and Port Milford, which has led to an increase in the country’s fuel imports; import levels have reached record highs in recent months. Following the closure of the Grangemouth refinery, only five refineries remain in operation in the UK, with a total capacity of around 1 million barrels per day.
These days, there are various mandatory requirements regarding energy conservation, emission reduction, environmental protection, and carbon emissions. The income generated from processing is not enough to cover these costs; with expenses exceeding income, what else can be done but to shut down operations? New equipment? There’s no more extra money available!