Commons Sense

House of Commons · General Debate

Prax Lindsey Oil Refinery 2025-06-30

30 June 2025 · 16 other contributors

Opened by Michael Shanks Con Constituency

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Michael Shanks raised concerns about prax lindsey oil refinery 2025-06-30 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Parliamentary Under-Secretary of State for Energy Security and Net Zero declared Prax Lindsey oil refinery's insolvency, urging support for workers and community.
  • Government will work with official receivers to manage operations and explore options for sale.
  • Minister commits to reviewing compensation schemes and investing in carbon capture projects to support the refining sector.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Michael Shanks Con Constituency

The Parliamentary Under-Secretary of State for Energy Security and Net Zero has declared the Prax Lindsey oil refinery's insolvency, urging support for workers and community. The Government will work with official receivers to manage operations and explore options. The company has recorded £75 million in losses since acquisition in 2021; other parts of its business continue trading normally.

Other contributors (16)
  • Andrew Bowie Con West Aberdeenshire and Kincardine

    Supports the investigation into conduct but argues that high energy costs are driving refineries out of business. Questions the long-term plans for the Prax Lindsey refinery and other remaining UK refineries, criticising government policies for increasing reliance on imports and offshoring carbon emissions.

  • Bill Esterson Lab Sefton Central

    The Minister is right about securing the fuel supply at Lindsey. He also recognises the importance of engaging with trade unions to reassure the workforce. The UK refinery sector should be part of the energy transition, adapting to changes and supporting future technologies.

  • Pippa Heylings LD South Cambridgeshire

    The closure will send shockwaves across Prax Group operations, with workers worried about job impacts. The company should bear responsibility for jobs and skills of those affected. Workers are paying the price for soaring energy costs, urging a comprehensive plan for oil and gas industry redeployment.

  • Melanie Onn Lab Great Grimsby and Cleethorpes

    More than 400 local jobs at risk due to State Oil's decision. Government efforts are appreciated, but the billionaire owner could do more to support workers in case of job loss. Statutory redundancy payments may not be enough.

  • Martin Vickers Con Brigg and Immingham

    Expressed concern about the lack of information from the company and requested assurances on medium-term support for workers and refinery. Criticised the Government's inability to obtain additional details due to the company's non-cooperation.

  • Acknowledged the distressing situation in the constituency and emphasised that the Government are committed to ensuring safe operations at the refinery while exploring buyer interest or alternatives. Announced funding for the official receiver to continue safe operations of the refinery until a buyer is found or other options are explored.

  • Brian Leishman Lab Alloa and Grangemouth

    Highlighted issues with private capital owning key infrastructure and praised the Government's commitment towards supporting Grangemouth through the national wealth fund. Called for an update on future ownership models in critical industries.

  • Graham Leadbitter SNP Moray West, Nairn and Strathspey

    Condemned Westminster's management of the energy sector and questioned why Grangemouth was not given similar attention. Inquired about steps to secure the future of Shetland gas plant.

  • Gareth Snell Lab/Co-op Stoke-on-Trent Central

    Discussed high industrial energy costs and asked if the criteria for the Energy Intensive Industry Compensation Scheme could be changed to include new sectors. Sought support for ceramics companies through the Energy Supercharger Scheme.

  • Harriet Cross Con Gordon and Buchan

    Called on the Government to end the energy profits levy in the North Sea to prevent another eleventh-hour intervention by the Government. Emphasised the need for strategic planning for future oil and gas supply chains.

  • Carla Denyer Green Bristol Central

    Advocated for a managed transition away from oil and gas industries, highlighting the need for a redeployment and retraining plan funded by industry. Proposed her Energy and Employment Rights Bill to address these issues.

  • Charlie Maynard LD Witney

    The Liberal Democrats support the workers facing hardships and will hold the government accountable. He questions the Minister on including international fuel trade in carbon border adjustment mechanism (CBAM) to ensure UK refineries are not at a disadvantage. Additionally, he asks how many more refineries can fall after Grangemouth without compromising fuel security.

  • The Minister supports the workers and acknowledges the importance of the refining industry but does not provide a specific number for future refinery operations due to business planning uncertainties. He also mentions efforts to support businesses in transitioning to cleaner industries through initiatives like carbon capture and storage, hydrogen investments, and supply chain infrastructure.

  • Sammy Wilson DUP East Antrim

    The DUP member criticises the government's net zero policy as detrimental to heavy industry. He argues that demonising fossil fuels discourages investment in refining sector due to high energy costs, carbon taxes, and other impediments.

  • Richard Tice Reform Boston and Skegness

    The Reform member blames the closure of Lindsey oil refinery on high energy costs under the government's net zero policy. He seeks a commitment from the Minister regarding when energy bills will decrease.

  • Sorcha Eastwood Alliance Lagan Valley

    The Alliance representative expresses concern over passing energy costs to consumers and supports workers involved in industrial action at Tata Steel. She asks if these jobs are crucial for future transitions and urges the Minister to look into cancelled meetings.

Government Response

The Minister has outlined urgent actions to manage the situation at the Prax Lindsey oil refinery site, including exploring all credible options for a sale. He commits to reviewing compensation schemes and investing in carbon capture projects to support the refining sector. The Government will back the official receiver running the refinery short-term to find a buyer, investigate director conduct, oppose volatile fossil fuel prices, and support energy transition towards renewables and nuclear for cheaper electricity. Emphasises engagement with trade unions and industry. Emphasised the Government's commitment to ensuring safe operations at the refinery while exploring buyer interest or alternatives. Announced funding for the official receiver and stated willingness to consider eligibility criteria changes for the British Industrial Competitive Scheme. Acknowledged the need for strategic planning for future oil and gas supply chains. The Government is working on supporting industries through initiatives like carbon capture, storage, hydrogen investments, and supply chain infrastructure. The Minister emphasises that businesses need to be profitable and acknowledges the complexity of the refinery closure without assigning blame solely to government policy.

Shadow Response

Andrew Bowie

The shadow minister criticises government policies for driving up energy costs and increasing reliance on imports. He questions the long-term plans for refineries, including Prax Lindsey, and demands action to support remaining UK refineries.

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