Prax Lindsey Oil Refinery

Pippa Heylings Excerpts

Monday 30th June 2025 Commons Chamber

[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.

[Michael Shanks]

I think I got all the hon. Lady’s key points down. Importantly, I agree with many of them. First, I echo the point that she makes about this being shocking news for the workers, as it always is. Given how quickly it has happened, it has been as much a surprise to us, but for the workers it will be particularly shocking news.

I will reiterate two things that the hon. Lady said, just to be clear. She mentioned the upstream business west of Shetland. That is not filing for insolvency. The petrol forecourts will continue to operate as normal, and the administrators are exploring the prospect of a sale of those retail operations. There is no need for anyone to be concerned about any of that.

There is an argument that it is critical, whatever the outcome, that the company takes some responsibility for the actions it has taken up to this point and for the workers who were employed in its business and kept it running for a long time. I have been clear in my statement today, and we will continue to reiterate it, that we expect the owners to put their hands in their pockets and provide the support that those workers deserve.

Finally, I was in Aberdeen last week talking to people about a comprehensive plan, and I will continue to do that, because it is right that we put in place a comprehensive plan for the future of those working in oil and gas. There is a bright future for that workforce in oil and gas for many decades to come, but increasingly they will transition into new industries. We are determined that we will deliver those jobs. A plan is crucial, and I am working on it at pace.