Grangemouth Oil Refinery Closure: Job Losses

Lord Offord of Garvel Excerpts

Thursday 3rd July 2025 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

I think the noble Lord will understand that I do not agree with that assessment of the situation. Our objective is net zero and what the Secretary of State is doing is thinking about the future. The jobs being lost in Scotland at Grangemouth are because the company has lost over £700 million since it took over the refinery. It invested £1.2 billion and still made a loss. It has got to do with the future, and it is about oil refineries which have international competitors. They need to change and secure long-term investment in sustainable fuels. There is a future for them, and it is one that we are going to back.

[Lord Offord of Garvel (Con)]

My Lords, the sad reality is that the Grangemouth oil refinery has come to its end of life after 100 years of service. That is due to the transition from oil and gas to renewables. Of course, the loss of 450 jobs is deeply regrettable, and Ineos should get some credit for working with authorities to try to mitigate that with Project Willow, but I am even more concerned about the 1,000 jobs on the site next to the oil refinery in the Ineos petrochemical plant. It is one of two of its kind in the UK; it is best in class of 40 in Europe, but its profitability is deeply compromised by exorbitant energy prices and carbon taxes which are not imposed on its competitors in the US, China and India. When will the Government realise that their current energy policies are driving the UK industry on the rocky road to ruin?

[Lord Wilson of Sedgefield (Lab)]

I thank the noble Lord for that question, but I think that the Opposition want to airbrush out of the equation the last 14 years, from 2010 to 2024. As far as the petrochemical industry and oil refineries are concerned, under the last Government’s watch two oil refineries closed and a third, Grangemouth, announced its closure. Last month saw the first meeting of the industry with a Minister in 13 years. The trade body for the oil refineries in that sector has welcomed this Government’s approach, especially the energy-intensive industries compensation scheme and a review into the industry’s eligibility for it. We are working with the industry and doing our best to think about what is best for the industry into the future. It is time that the Opposition reflect on what they achieved in the last 14 years.