House of Commons · Urgent Question
22 July 2025 · 15 other contributors
Opened by Andrew Bowie Con West Aberdeenshire and Kincardine
Summarised by AI from the official record, so it can contain mistakes.
Andrew Bowie raised concerns about prax lindsey oil refinery 2025-07-22 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Minister confirm the closure of the Prax Lindsey oil refinery, discuss the implications for energy security and resilience in the UK, and outline what work is being done to ensure the future of the remaining oil refineries?
Question
What progress has been made on the investigation, when is it expected, and what assessment has been made of UK's resilience given the steep reduction in refining capacity?
Minister reply
The Insolvency Service is conducting the investigation. We have not much to update at the moment but expect a thorough process which might take time. On resilience, although Prax Lindsey comprises about 10% of remaining refinery capacity, local and wider fuel supply risks are being monitored closely.
Question
How will reducing reliance on volatile oil prices managed by petrostates help industrial energy prices?
Minister reply
Managing the transition to clean power gives us back energy security and reduces price volatility. We are looking at how we can support refineries more through including them in the Energy Intensive Industries Compensation Scheme.
Question
What strategy is needed to support workers whose livelihoods are affected and ensure a just transition to green jobs?
Minister reply
We need practical help with reskilling and retraining, targeted green investment in future industries offering secure jobs. We will continue supporting refineries in the transition to clean energy.
Question
What engagement is the Minister undertaking with trade unions representing workers? Will he give an assurance that detailed modelling work includes the impact on the wider supply chain?
Minister reply
I have engaged with both Unite trade union reps and day shift workers. I met them earlier this month and last week at the refinery, and will meet them again shortly to discuss further. We are assessing the impact of closure on the wider supply chain.
Question
What reassurances can be given about enhanced redundancy packages? What impact will closure have on rural constituents who rely on heating oil?
Minister reply
Due to insolvency, workers are entitled to statutory redundancy. However, I publicly asked the company owners to improve this package. We are providing a training guarantee from Government funds. Closure has minimal immediate impact on heating oil prices due to supply from neighbouring refinery.
Question
What help and support is available now for energy-intensive industries before new schemes come online?
Minister reply
We are looking at expanding the energy-intensive certification programme to include refineries. We will consult on this as quickly as possible to ensure no unintended consequences. Additionally, we are doing everything possible to bring down prices to prevent redundancies.
Question
Will the Minister reconsider statutory redundancy? What impact will closure have on North Lincolnshire council’s business rates?
Minister reply
We cannot change statutory redundancy as per Insolvency Service rules. The owners should fund additional payments due to their profits from the refinery. We are assessing bids for the site, hoping new industries bring economic benefit and business rates income.
Question
Are reports correct that the previous Government did not meet sector representatives for 13 years? What is the moral obligation of the owner towards workers?
Minister reply
My understanding from the sector and Department is that meetings have not happened in the past 13 years. I agree that there is a moral obligation for the owner to support those families affected.
Question
Thanking the Minister for his briefing yesterday, he raises a pattern of unemployment increasing under this Labour Government. With job losses at Vivergo, asks to reassure affected individuals that future exists in industry.
Minister reply
Avoids wider political points as workers face devastating news about jobs. Reiterates investment in industrial strategy and delivery of thousands of jobs on the Humber and across country. Denies previous Conservative Government had credible industrial strategy.
Question
Asked Minister to support her energy jobs Bill for proactive retraining of oil and gas workers, funded by companies. Acknowledges progress but seeks proactive industry-wide plan.
Minister reply
Responds that company went into insolvency; workers entitled only to statutory redundancy. Calls on owners to fund proper redundancy directly. Discusses transition in oil and gas industry with investment in renewables and carbon capture.
Question
Refinery produces small amount of UK refined fuel but provides around 50% fuel to Warwickshire Oil Storage site, asks about impact on west midlands supply and demand balance.
Minister reply
Happy to follow up specifics with the hon. Gentleman; daily updates on assessments show commercial contracts able to be renegotiated after insolvency. No disruption assessed at moment.
Question
Critiques Labour's poor attendance and asks if foreign company has been lined up for asset-stripping the site.
Minister reply
Refutes spreading rumours, indicates assessments of bids for business as going concern but none credible leading to decision on ceasing refining. Some bids interested in parts of the site for various purposes.
Question
Highlights importance of jobs, asks for clarity about new jobs in renewables being comparable to lost oil and gas sector jobs.
Minister reply
Objectives include delivering good, well-paid unionised jobs; pushing on trade union recognition. Critiques opposition from Conservatives regarding clean energy policies.
Question
Notes refinery supplied 10% of British fuel and asks for discussions with Cabinet colleagues to provide long-term assurance.
Minister reply
Pushed over four weeks, Government assessed bids but none viable. Not nationalising loss-making businesses; aiming to assess future site bids maximally keeping jobs.
Government Response
In my oral statement on 30 June, I informed Parliament of the deeply disappointing news that the Prax Lindsey oil refinery had entered insolvency. Since then, we have worked urgently to ensure safety and fuel supply security. A package has been offered guaranteeing jobs and pay for directly employed workers, and a comprehensive training programme is being funded. The official receiver continues to explore proposals for assets on site. We will continue selling refined products, ensuring time for buyers to adjust supply chains. An investigation into the conduct leading to insolvency was demanded by the Energy Secretary.