Prax Lindsey Oil Refinery

Caroline Nokes Excerpts

Monday 30th June 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

--- Later in debate ---

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Select Committee.

[Bill Esterson (Sefton Central) (Lab)]

My hon. Friend the Minister recognises the importance to our energy security of securing the fuel supply at Lindsey. He also recognises the importance of engaging with the trade unions to attempt, at least, to reassure the workforce. I thank him for those actions and congratulate him on them, and indeed on the engagement that the Government have had with the sector since the election.

Refinery operations are increasingly challenging, not least because of the volatility and uncertainty in international fossil fuel markets that the Minister just mentioned, but also because of the competition across the world. Phillips 66 and Stanlow, which he mentioned in his statement, are adapting to the changes in our energy system, taking advantage of carbon capture and the production of sustainable aviation fuel and biofuels. Will the Minister ensure that the UK refinery sector is part of the energy transition and a key part of our energy and industrial strategies, so that refineries play a key part in the future for the communities and workers that depend on those jobs at the moment, and so that we do not see a cliff edge?

[Michael Shanks]

I thank my hon. Friend for his question. First, he is right to restate what I said in the statement—when I brought in the refinery industry for a roundtable, it was frankly extraordinary to be told that it was the first time in 13 years that that had happened. That is an extraordinary state of affairs. I am glad that we have now held that roundtable, but what it has highlighted is just how much engagement with the sector is now necessary. I am determined to drive that engagement forward.

My hon. Friend is also right about the nature of the transition. Refineries will be important at all stages of the transition. Clearly, they are critical to delivering our fuel security today, and they will play a really important role in that area in the future—in sustainable aviation fuel, biofuels, and the wider work we need that sector to do. We will support refineries to transition into some of those future technologies.

The bottom line in this case is that we seem to have had a business that was far from doing that—it was not driving forward the investment that was necessary. We will now, at pace, try to get to the bottom of what the directors were doing with this company. It is a shocking state of affairs and a sad day for the workers, but I genuinely believe that there will be a strong refining sector in the future.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Pippa Heylings (South Cambridgeshire) (LD)]

I, too, thank the Minister for advance notice of the statement today. Our thoughts are with the workers at the Prax Lindsey refinery who have heard this last-minute, shocking news today, which has put their futures and jobs on hold.

We understand that this is just one refinery within the Prax Group, but the threatened closure will send shockwaves across its wider operations, with its newly acquired oilfields to the west of Shetland and roughly 200 petrol stations in the UK under the Breeze and Harvest Energy brands. While those facilities are outside the insolvency process as things stand, workers in those upstream businesses and the wider community will understandably be worried about the impact of the insolvency on their jobs.

There are questions to be asked of the company bosses in both State Oil and the Prax Group, and it is good to hear the Secretary of State’s announcement of an investigation into how the company bosses have let workers down. We welcome the Minister’s words that the company should bear some responsibility and accountability for jobs and skills for those workers, if it turns out that the company closes.

We welcome the Government’s proposals to consider adding refineries to the network charging compensation scheme for energy-intensive industries. Once again, as we have heard, we see UK industry buckling under soaring energy costs—some of the highest in Europe—with workers left to pay the price. Many in this House will feel a troubling sense of déjà vu following the Grangemouth job losses. We have heard from the Minister about the state of the refining industry and how the industry had not met the Government for 13 years. Such situations make it yet clearer that the Government must set out a comprehensive and strategic plan for workers in the oil and gas industry to support the redeployment of skills and training as part of a just transition.

A recent report by Robert Gordon University warned that the UK risks losing tens of thousands of offshore energy jobs by 2030 unless urgent and co-ordinated action is taken immediately. Rather than the irresponsible and reckless race backwards to volatile fossil fuel dependency that the Conservatives have put forward today, the report calls for honest dialogue to settle on a common UK policy framework—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Lady will know that the time limit for responses to statements is two minutes for the Liberal Democrats. I am sure she has finished her comments.

[Pippa Heylings]

In conclusion, many thanks, Madam Deputy Speaker.