THE closure of the Grangemouth oil refinery will make Scotland less energy self-sufficient, according to an industry expert.
During an appearance on BBC Scotland’s news programme The Nine, David Hunter, an oil and gas analyst for energy management company Schneider Electric, was asked whether the change of use of Grangemouth from a refinery to an import hub would impact energy self-sufficiency in Scotland.
He said: “It’s a strange one because we’ll still be a significant oil and gas producer but we’re not refining oil ourselves.
“So, from that aspect of energy security we will be reliant more on imports, even from south of the Border, our remaining UK refineries.
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“At the moment Grangemouth produces something like 70-80% of the fuel that we fill up in the forecourts and also Northern Ireland and north England, too”.
He added that the decision would inevitably have an impact on the economy.
“If we’re doing less at Grangemouth then that’s bad news for the economy,” he said.
“It’s a big part of the Scottish manufacturing base.
“Through the supply chain it’s not just the people directly impacted by this but also contractors and local businesses that depend on the refinery specifically, even though we will continue to do other manufacturing at Grangemouth.”
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Petroineos, which owns the refinery, said crude oil operations are expected to cease in Spring 2025.
Chief executive Franck Demay said it was a necessary step “to reflect the decline in demand for the type of fuels we produce”.
First Minister Humza Yousaf said the scale of job losses at the site could be “quite significant” and said the Scottish Government was prepared to work with Petroineos and trade unions to “ensure a sustainable future for Grangemouth”.
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