What might the future hold for Grangemouth? – BBC News

Then in the 1970s, a new source of crude oil feedstock in the shape of North Sea oil brought further business – and the opening of the Forties pipeline.

The 235-mile line carries crude oil from North Sea installations to the nearby Kinneil terminal and relies on the Grangemouth refinery for steam and electricity to function.

In 2005 the site was bought by Ineos – a company owned by Britain’s richest man Sir Jim Ratcliffe – in a £5bn takeover.

Disputes soon began with the Unite union over plans to end a final salary pension scheme for new workers at the plant, resulting in a strike in 2008. It was the first time production had completely halted and brought fears over petrol shortages.

Another dispute in 2013 led to Ineos shutting down the plant and issuing revised terms and conditions, including ending the final salary pension scheme and cutting shift allowances.

This was coupled with a survival plan which included a £300m investment to keep the site open. It was ultimately accepted by the union.

Ineos announced with great fanfare the arrival of the first shipment of shale gas – which can be recovered through fracking – from the US in 2016.

After the Scottish government’s fracking consultation the following year, an “effective ban” was put in place. Ineos and another petrochemical firm sought a judicial review, but lost in court.

While the petrochemical plant is wholly owned by Ineos, the refinery is owned by Petroineos – a joint venture between Ineos and PetroChina.

It is currently the primary supplier of aviation fuel for Scotland’s main airports, and a major supplier of petrol and diesel ground fuels across the Central Belt.

Petroineos announced its intention to shut down the refinery in November, saying Grangemouth had been facing significant challenges because of global market pressures.

Climate Camp Scotland – who were among the environmental activists staging protests at the site last summer – said the plans were a “damning indictment of a market-led transition away from fossil fuels”.

About 2,000 people are directly employed at the site including 500 at the refinery, 450 on the Forties pipeline from the North Sea and a further 1,000 in the Ineos petrochemicals business.

Some 100 staff would be needed for the planned fuels import terminal – which Petroineos said would be able to import petrol, diesel, aviation fuel and kerosene into Scotland.

It said the timescale for the transition had “not yet been determined”, but the work was expected to take about 18 months.

Petroineos also said it was working closely on the project with a “range of interested parties”, including the Scottish and UK governments, and said it would provide more information in due course.

Trade union Unite has said it would “leave no stone unturned” in its fight to save jobs at the site.

The issue is making headlines again because it came up in discussions between Sir Keir Starmer and First Minister John Swinney, during the Labour leader’s first visit to Scotland as prime minister.

Meanwhile Sir Keir promised “immediate” discussions over steps to preserve jobs and ensure Grangemouth’s future, which he said was a “real priority”.

Ed Miliband, the new UK energy secretary, also discussed the issue with Scottish Labour leader Anas Sarwar in a phone call on Sunday morning, though particulars of these discussions are unclear.