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Oil Refining Sector 2026-01-14
14 January 2026
Lead MP
Martin Vickers
Debate Type
Adjournment Debate
Tags
EconomyTaxation
Other Contributors: 4
At a Glance
Martin Vickers raised concerns about oil refining sector 2026-01-14 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
For workers and their families across the Humber, the past six months have been bruising to say the least. People who have spent their working lives keeping a complex site safe, compliant and productive have faced prolonged uncertainty—and they have done so with dignity and professionalism.
Melanie Onn
Lab
Great Grimsby and Cleethorpes
There are concerns about the official receiver process, and there is some justification for them. The whole process has been incredibly opaque.
The Government have shifted position, and now say that there were no credible bids, or certainly none that provided any immediate refining capacity, or allowed the site to be run as a going concern.
This is not just about the local community; we are talking about a vital national resource, and the House of Commons needs to be informed, big time.
Melanie Onn
Lab
Great Grimsby
What will be the Government’s position at the European Union summit in May on the emissions trading scheme?
Government Response
I thank the hon. Member for Brigg and Immingham (Martin Vickers) for securing this debate... Let me start with Prax Lindsey oil refinery. It entered insolvency on 30 June 2025 because of the untenable position in which the owners left the refinery, which gave the Government very little time to act... After a thorough process to identify a buyer for the site, the official receiver has determined that Phillips 66 is the most credible bidder and can provide a viable future for the site. I am glad to say that the sale is expected to complete in the first half of 2026... The company has decided not to restart stand-alone refinery operations at Lindsey... Although that is disappointing, it is not totally unexpected, given the long history of problems with the business... Phillips 66 plans to integrate key assets into its Humber refinery operations, expanding its ability to supply fuel to UK customers from the Humber refinery... The remaining 250 directly employed workers are guaranteed employment until the end of March... Ministers in the Department and I recognise that this is a very worrying time for workers... Through the renewable transport fuel obligation and the new sustainable aviation fuel mandate, we are backing the production and use of cleaner fuels. The Humber refinery is already delivering sustainable aviation fuels at scale, and refineries at Fawley and Stanlow are benefiting from Government support through the advanced fuels fund to bring next-generation fuels to market. We are also working to de-risk investment in sustainable aviation fuel production through the revenue certainty mechanism. Secondly, we are working closely with industry on major decarbonisation efforts including carbon capture and hydrogen projects within industrial clusters such as Viking and HyNet, central for keeping UK manufacturing competitive. The UK ETS Authority’s decision to maintain current benchmarks provides consistency and breathing room for energy-intensive industries to plan investments and manage costs effectively. In the autumn Budget, we committed to assessing the feasibility of including refined products in the carbon border adjustment mechanism to ensure that UK refineries were not undercut by imports produced to lower environmental standards. Collectively, these measures signal our determination to create conditions for continued investment, innovation and long-term competitiveness as we transition to a low-carbon economy. Minister Shanks led the first ministerial roundtable with the sector for more than a decade and will continue engaging with the industry. In closing, let me be clear: we recognise the importance of the Lindsey oil refinery and Lindsey site to the local community and national economy. The integration of its assets into the Humber refinery will boost energy security and support high-quality employment locally. The UK refining sector matters, and that is why this Government are acting to support low-carbon fuel production and deploying carbon capture and hydrogen, launching a call for evidence to shape our long-term strategy.
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