SCOTLAND’s Energy Secretary has insisted “we shouldn’t be too alarmist” as Grangemouth oil refinery prepares to close in 2025.
It was announced on Wednesday that operations are expected to cease in under 18 months in spring 2025.
Owners Petroineos, a joint venture between PetroChina and Ineos, said the site would now become an import and distribution hub.
SNP MSP Michelle Thomson raised an urgent question at Holyrood Thursday after the news sparked major concerns that hundreds of jobs could come under threat.
It is understood the proposals could result in the loss of around 400 jobs. Around 500 permanent staff work at the refinery and the owners believe around 100 would be needed to operate an import terminal.
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Gray said he had written to Clare Coutinho, the UK’s Energy Security and Net Zero Secretary, expressing his concerns and has asked for an urgent meeting with her to work out how best to support those affected.
But he told the chamber it was "important" not to be "alarmist" about the situation and insisted the Government would look at how the life of the refinery can be extended.
Following a question from Alba MSP Ash Regan, Gray said: “We’re looking at everything we can do in order to ensure there is continued industrial activity at Grangemouth site.
“But I think it’s important to not be too alarmist in the narrative we are putting forward here. This is about the refinery, this is not about the wider Grangemouth site and the wider businesses and operations that are based there.
“Obviously the Grangemouth refinery is incredibly important strategically and as an economic asset so we will continue to look at all we can do alongside colleagues in the trade union movement, with Petroineos, with the UK Government, around whether there is anything to extend the life of the refinery.
“But I cannot underline enough the challenges that are currently being faced.”
Regan highlighted how the Government had intervened twice before in 2008 and 2013 to save the refinery.
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Gray said he had spoken with senior management at Petroineos on Thursday morning alongside the First Minister and they had assured him the move was a commercial one and not anything to do with decisions made by the Scottish or UK Governments.
He outlined that a just transition “must be at the heart” of any decision made by Petroineos.
The minister said: “It’s my understanding this is not a decision at this point to close the refinery but to start the necessary preparation to have the potential to transition Grangemouth to an import terminal.
“The management were clear this is a commercial decision taken due to global factors and not a decision that has been taken because of anything this Government or indeed the UK Government has done and they are supportive of our 2045 targets.
“I have also met with Unite and STUC [Scottish Trade Union Congress] to express our full support for staff at Grangemouth and ensure we are doing all we can to ensure a sustainable future for the refinery.
“We have a shared commitment to insisting that a just transition for workers is at the heart of any future decision.”
Petroineos has said the site “faces significant challenges due to global market pressures and the energy transition”.
Scotland’s Just Transition Commission has said the decision to cease operations at Grangemouth runs “directly counter to a just transition to a low carbon economy”.
It said it is “deeply concerned” there will be a repeat of “previous unmanaged industrial transitions in coal and steel” which have left a negative legacy in some communities.
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