Labour MP for Nationalisation of Grangemouth Refinery to Protect Jobs

Labour MP Brian Leishman, representing Grangemouth, has urged the UK government to nationalise the town’s oil refinery to preserve jobs and ensure continued operations. He emphasised that this is a matter of public interest and national security.

The call comes after Petroineos, a joint venture between PetroChina and Ineos, confirmed that the 100-year-old Grangemouth refinery will close, resulting in the loss of around 400 jobs. The refinery is expected to be converted into a terminal for importing petrol, diesel, aviation fuel, and kerosene by next summer. Petroineos stated that this move will "safeguard fuel supply for Scotland."

Prime Minister Sir Keir Starmer reassured that the UK government is working to secure "safe, skilled jobs" in Scotland for future generations. However, Leishman remains determined to prevent the closure, stating that the “fight must go on” and calling for nationalisation as a solution.

Leishman criticised both the UK and Scottish governments, accusing them of passively accepting the narrative that the refinery is unprofitable. He argued that ensuring the functionality of key equipment, such as the hydrocracker, could significantly improve the refinery's profitability. He also linked energy security to national security, urging the government to intervene and save operations.

First Minister John Swinney expressed disappointment over the refinery's closure, while both the Scottish and UK governments announced a £100 million investment package to support the workforce and community’s transition. Sir Keir also reiterated Labour’s plan to create GB Energy, a UK government-backed energy company, to be headquartered in Scotland and focused on clean energy transition.

The refinery, originally opened by BP in 1924, is Scotland’s only oil refinery and one of six in the UK. It has been a crucial supplier of aviation fuel and ground fuels for Scotland's central belt. Despite its historical significance, Petroineos stated that it could no longer compete with refineries in Asia, Africa, and the Middle East, leading to daily losses of around $500,000 (£383,000). The closure is expected to result in 250 to 280 job losses within three months, with the remaining workforce involved in decommissioning operations until 2030.

Unions and workers have criticised the closure as a “kick in the teeth” and a “terrible indictment” of both the governments and the company.