Oil Refining Sector

Melanie Onn Excerpts

Wednesday 14th January 2026 Commons Chamber

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

I thank my hon. Friend the Member for Brigg and Immingham (Martin Vickers) for securing the debate and for being so gracious with his time.

For workers and their families across the Humber, the past six months have been bruising to say the least. People who have spent their working lives keeping a complex site safe, compliant and productive have faced prolonged uncertainty—and they have done so with dignity and professionalism. I put on the record my support for them and give assurances that they are always at the forefront of my mind when I am pushing for clarity in this House.

It is important that accountability matters in who is ultimately at fault for the collapse of the refinery. In September last year, the High Court froze about £150 million-worth of assets belonging to the former owner of the refinery, Winston Soosaipillai—also known as Sanjeev Kumar. This action will be welcomed by the workers and communities who have paid the price for Mr Soosaipillai’s reckless financial mismanagement, but what happens to those assets? For how long will they be frozen? Can they be used to support and develop the site, or support some of the interventions that the Government have discussed?

As the hon. Member for Brigg and Immingham has detailed, there are concerns about the official receiver process, and there is some justification for them. The whole process has been incredibly opaque, and it has been very difficult to engage in communications under legal frameworks that barred Government and elected representatives from having any kind of input. The targets that the official receiver was working to have not been clear at all. We are in the dark, as are the workers, and that has caused even more uncertainty and distress for people.

Is this really the best outcome for the site? I am encouraged by Phillips 66 taking on the site, but it cannot be ignored that ministerial correspondence has said that there were credible bids. We have heard the numbers; they are disputed—is it four, seven, one, or none? We do not know, because we cannot get any answers on that. The Government have shifted position, and now say that there were no credible bids, or certainly none that provided any immediate refining capacity, or allowed the site to be run as a going concern. We understand that there may well be commercial interests involved, but could we not open the books, and see the matrix that the official receiver used and how they reached their decision, under Chatham House rules? Then at least elected representatives would be able to make an assessment on behalf of their constituents. Surely the Government could do that.

[Dave Doogan]

The hon. Lady talks about our need to scrutinise what was deemed a credible bid. Will she ask the Minister whether the Government will apply “commercial in confidence” rules in order to cover their tracks when it comes to what was and was not a credible bid?

[Melanie Onn]

I disagree with that, but I urge the Government to be prepared to open up on some of the process. I understand that there will be commercial sensitivities, but I hope that a route can be found to enable us to scrutinise the information available.

[Sir Edward Leigh]

We have heard from my hon. Friend the Member for Brigg and Immingham (Martin Vickers) that there are bidders, and they think that their bid is credible. I think we are entitled to tell the Government that we do not want asset-stripping here. This is not just about the local community; we are talking about a vital national resource, and the House of Commons needs to be informed, big time.

[Melanie Onn]

We have also had trusted privilege, as a House, in the past; we were able to see secure information and secure documents. All of us were able to go to a room and sign in to read documents on exiting the European Union, for example. There are ways and means of doing these things, and of placing trust in elected representatives. Much of the information from companies was made available to local representatives anyway, because they emailed the details to us. It would be interesting to learn why the official receivers deemed bids not to be credible.

I will move forward, because decisions have already been made, and it would be challenging, to say the least, if we went backwards on this. The written statement of 22 July delivered by the Minister for Energy confirmed important commitments for those directly employed at Lindsey: a package guaranteeing jobs, a redundancy scheme that will end in March—another 240 people will be made redundant then—and a training guarantee. There have been concerns about that training guarantee, and I would ask the Ministers to look more closely at that as we move forward.

--- Later in debate ---

[Martin McCluskey]

The hon. Gentleman will know that such discussions are commercially confidential, and the official receiver has undertaken an independent process to come to his decision.

As my hon. Friend the Member for Great Grimsby and Cleethorpes mentioned, the support for the 124 workers affected by redundancy last October includes a training guarantee to ensure that they have the skills that they need, and are supported to find long-term jobs. That goes above and beyond the usual support offered in insolvency situations. I am pleased to confirm that many —the majority—of those workers have already taken up this offer. My hon. Friend the Minister for Energy will be pleased to discuss any issues that my hon. Friend the Member for Great Grimsby and Cleethorpes thinks may emerge to do with the training guarantee.

I believe that the agreement with Phillips 66 marks the next step in securing an industrial future for the site and for the workers, who were badly let down by the former owners. The circumstances surrounding the insolvency are deeply concerning, and that is why the Energy Secretary immediately demanded that the Insolvency Service launch an investigation into the owners’ conduct and the circumstances surrounding the insolvency, which is ongoing.

Turning to issues in the broader UK oil refining sector, the UK’s refineries continue to play a vital role in maintaining reliable supplies of essential fuels that keep transport moving, industry operating and support households with their day-to-day lives. We appreciate that their contribution goes far beyond fuel alone. They are anchors for local economies, providing well-paid, skilled jobs and supporting a wide web of supply chains, which involve everything from chemicals to plastics to advanced manufacturing.

Refinery facilities also enable the production of specialist materials that many of our industries rely on. For example, the Humber refinery produces the UK’s only anode-grade petroleum coke, used in electric vehicle technology, while Fawley’s output of specialised rubber helped to ensure vaccine vials could be produced securely during the pandemic. Crucially, our refineries are also adapting for the future. They are investing in modernisation, low-carbon fuels, and technologies such as carbon capture, which are all essential to the UK’s transition to net zero. The Humber region will have a major role to play in that over the coming years. While overall fuel demand is expected to shift over time, sectors such as aviation, maritime and heavy industry will continue to depend on refined products well into the future. We want to preserve our refining sector and keep it competitive.

[Melanie Onn]

On the point about keeping UK oil refineries competitive, what will be the Government’s position at the European Union summit in May, in discussions on the emissions trading scheme? What will they take forward?

[Martin McCluskey]

I will write to my hon. Friend on that point about the carbon border adjustment mechanism and the ETS.

As was set out in the autumn Budget, we are reviewing critical policies to address the challenges that the sector faces. I will briefly go through the steps that we have already taken to help the downstream sector adapt and stay competitive. First, through the renewable transport fuel obligation and the new sustainable aviation fuel mandate, we are backing the production and use of cleaner fuels. The Humber refinery is already delivering sustainable aviation fuels at scale, and refineries at Fawley and Stanlow are benefiting from Government support through the advanced fuels fund to bring next-generation fuels to market. We are also working to de-risk investment in sustainable aviation fuel production through the revenue certainty mechanism.

Secondly, we are working closely with industry on major decarbonisation efforts, including carbon capture and hydrogen projects, within industrial clusters such as Viking and HyNet, which will be central to keeping UK manufacturing competitive as global markets tighten emissions standards. The UK ETS Authority’s decision to maintain current benchmarks for the 2027 scheme year provides the consistency and breathing room that energy-intensive industries need to plan investments and manage costs effectively.

In the autumn Budget, we committed to assessing the feasibility of including refined products in the carbon border adjustment mechanism. That is a key priority for industry, and it would help ensure that UK refineries were not undercut by imports produced to lower environmental standards. Collectively, these measures signal our determination to create the conditions for continued investment, innovation and long-term competitiveness as we transition to a low-carbon economy.

Looking ahead, the Government are deepening their engagement with the sector to ensure a smooth and secure transition in the coming years. It is important to note that Minister Shanks led the first ministerial—