Oil Refining Sector

Jim Shannon Excerpts

Thursday 11th December 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Mr Western. I thank the hon. Member for Brigg and Immingham (Martin Vickers) for leading the debate. The very thrust of the issue that the hon. Member for Ashfield (Lee Anderson) underlined, and that I endorse, is how it changes communities whenever disastrous decisions are taken.

The future of the UK oil refining industry has become an increasingly urgent topic as we navigate the pressures of energy security and the transition to net zero. I should have welcomed the Minister to her position; I wish her well in it. I am not sure whether today’s is a good debate for her to be answering questions, but that is by the way—we will see how it all goes. We have seen the closure of two major oil refineries this year, so it is important that we are here to discuss the future of our fossil fuel sector across the United Kingdom.

This debate is important not just for the constituencies represented by, for example, the hon. Members for Alloa and Grangemouth (Brian Leishman) and for Falkirk (Euan Stainbank), but for us in Northern Ireland as well. Our oil came from Grangemouth and Lindsey, so the impact for us in Northern Ireland will be the same as it is for everybody else. The difference will be that we will not be getting oil from within the United Kingdom and will have to buy it from outside. That concerns me greatly.

I commend the Members who have spoken. In particular, I commend the hon. Member for Alloa and Grangemouth for his passion, which he always shows in the main Chamber and here in Westminster Hall. He puts forward his case incredibly well.

The UK’s oil-refining capacity has shrunk substantially over the past 20 years or so. As of 2023, total refining capacity stood at roughly 1.22 million barrels per day, and the UK produced around 51.45 million tonnes of refined petroleum products. Some people ask how this effects the workers. Many of us have constituents who work in the oilfields—I think nearly every constituency has them; I know I have them in Strangford—and this impacts on them as well. Northern Ireland does not have any operating crude oil refinery, and all refined fuels, such as petrol, diesel and jet fuel, are imported.

Historically, some of Northern Ireland’s fuel came from refineries across the rest of the UK, with the products shipped or piped to Northern Ireland terminals. For example, Petronas, which until 2025 operated the Grangemouth refinery, supplied almost all the fuel for Northern Ireland. We have witnessed the closure of two refineries, Grangemouth and Lindsey, and Members have outlined their concerns, whether they represent the area or are here to speak on behalf of others. There is no doubt about the significant impact on where we source fuel. Events in the wider UK refining sector, such as closures or capacity losses, will have knock-on effects on fuel security, price stability and supply chain resilience in Northern Ireland. The impact will be felt by us all.

We have witnesses the United Kingdom’s reliance on imports, and there has been a significant impact in terms of job losses, and the redundancy of engineers, technicians and maintenance workers. We also have to recognise the significant loss of skill and experience. Even if things were to change in time, those people will have moved elsewhere, so how do we start again? That is, if we are able to start again, of course.

Furthermore, the closure of refineries has an impact on associated industries such as petrochemical storage and marine freight. The impact is like a domino effect: one thing happens and it knocks on right down the line. With two large domestic refining assets having closed, the UK must now import more petrol and more diesel, which completely reduces our domestic control over fuel supplies.

I believe that we are doing our bit to improve our infrastructure and to adapt to net zero goals, but what does that mean in the meantime? I do not think anybody here does not believe that there is a role for net zero, for the green environment and for green energy, but we do not want to lose the core of our ability to produce oil for our own country. The United Kingdom’s commitment to net zero remains essential to protect the environment and for our long-term energy security, and to create new green industries. However, the recent closures of the refineries at Lindsey and Grangemouth show that the transition also brings real challenges for workers and local economies—for every economy right across this United Kingdom of Great Britain and Northern Ireland—affecting all the regions and our overall industrial capacity.

The transition has to be carefully managed. It is the responsibility of the Minister and this Government to ensure that we are equipped to deal with the changes, for the benefit of everyone in this great United Kingdom of Great Britain and Northern Ireland. I always say that we are better together, but we have got to work together as well. We have to work together for everybody. That is what I ask the Minister: how can we make sure that we can all do it better together?