Grangemouth Oil Refinery: Energy Security

Christine Jardine Excerpts

Tuesday 9th January 2024 Commons Chamber

[The Minister for Energy Security and Net Zero (Graham Stuart)]

May I begin by thanking the hon. Member for East Lothian (Kenny MacAskill) for securing this important debate and colleagues across the Chamber for joining it? I recognise that news of a plan to transition Grangemouth refinery into an import terminal is undoubtedly a matter of concern for many people. However, I make clear that the Government are committed to ensuring continued fuel supply, protecting jobs and creating opportunities in Scotland and across the UK. The primary responsibility of my Department is for the energy security of the whole of the UK, including Scotland. On 29 November, I met the Scottish Cabinet Secretary, Neil Gray, and we agreed that both our Governments would continue to work closely on this issue through forums such as the Grangemouth future industries board. Scotland and the UK will continue to have reliable supplies of fuels after the transition, in line with the UK Government’s commitment to energy security and resilience.

Before I go into specifics, I want to recognise that Grangemouth refinery has been an important asset for the fuel supply of Scotland and the local economy since it opened in 1924. No final decision on the future of the refinery has been made, but the planning for the conversion of the refinery into an import terminal is a commercial decision by its owner, Petroineos. That reflects its view of the economic sustainability of the refinery in the context of expected refining margins, domestic demand projections and international competition. Even in this macroeconomic context, the UK and Scottish Governments are working together to understand all the options for the future of the refinery.

[Christine Jardine (Edinburgh West) (LD)]

As the Minister just said, Grangemouth is a vital economic factor for the immediate vicinity, for my constituents in Edinburgh West and indeed for all of Scotland. Will the Government continue to support Grangemouth, given its importance to the future success of the green freeport, of which it is a vital component, not least because of its future capability to produce the sustainable aviation fuel on which so many developments are predisposed?

[Graham Stuart]

The hon. Lady is absolutely right to champion such opportunities, of which there are so many going forward. That is why, if a decision is made on refining there, I believe that would be countermanded multiple times over by the opportunities in issues such as SAF, which she mentioned. Scotland and that area have such a role to play in delivering and continuing the UK’s global leadership in cutting emissions. We recently celebrated the fact that we have halved emissions—we are the first major economy on earth to have done so—and of course going forward we are ambitious than any other major economy on earth. Scotland has such a vital role to play in that.