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Prax Lindsey Oil Refinery 2025-06-30
30 June 2025
Lead MP
Michael Shanks
Debate Type
General Debate
Tags
EconomyEmploymentClimate
Other Contributors: 16
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.
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
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.
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.
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.
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.
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
Shadow Response
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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