Grangemouth Oil Refinery: Energy Security

Opened the debate

MacAskill discussed the potential closure of Grangemouth oil refinery, arguing it would be absurd for an oil-producing nation to lack a refinery. He cited historical industrial closures that devastated communities and warned of social and economic hardship if the refinery were to close. MacAskill highlighted the significant job losses (500 direct jobs plus 2,000 contractors) and the impact on local industries and supply chains. He emphasised the importance of energy security and the need for a just transition towards renewable fuels, advocating for restarting the hydrocracker (£60-80 million investment), increasing refinery capacity to process North Sea oil, and preparing the site for biofuels.

Government Response

Stuart acknowledged concerns over Grangemouth's potential conversion into an import terminal but stated that both UK and Scottish Governments were committed to ensuring continued fuel supply, protecting jobs and creating opportunities. He highlighted ongoing collaboration with Petroineos to ensure a managed transition and mitigate job losses through economic support initiatives like the UK shared prosperity fund (£6.1 million) and Falkirk city and regional growth deal (£40 million). Stuart also emphasised the Government's commitment to supporting North Sea oil production, including new projects like Rosebank field development, which he argued would contribute to energy security and emissions reduction goals despite Labour party opposition.