Grangemouth Refinery and the ECIA journey

While expressing regret at the intention of the owner to cease refining operations at the Petroineos Refinery, jointly owned by INEOS and PetroChina, one understands the economic realities behind that decision and the competition from overseas refineries. The Grangemouth refinery, established by BP in 1924 and the oldest in the UK, employed a workforce of 450 in-house employees, as well as providing employment for the personnel of ECIA member companies supplying R&M and project work in support of the client’s operations. With the transition to a fuel storage facility employing around 65 operatives by August of this year, there will be little scope for our members to supply these services in future.  

Ken Kennedy, who has been associated with the site since the BP years, previously as an employee of a major tankage contractor, and now as a ECIA Employment Relations Manager for Scottish Region, add: “It has been a great pleasure to work with clients and members at Grangemouth for over 20 years and I look forward to further cooperation as the site transitions to new ventures”. 

The Project Willow feasibility study, published in March 2025, set out a number of options to secure a long-term future for the Grangemouth area, and while backed by funding from the UK and Scottish governments, it will require major private investment to realise its proposals. The projects envisaged include recycling of plastics, biorefining, use of bio-feedstock, anaerobic digestion, conversion of crops into sustainable aviation fuel and renewable diesel using low-carbon hydrogen. The replacement of natural gas with hydrogen, using it to produce methanol for conversion to SAF and also producing ammonia for shipping and chemicals, is also suggested. The timescale of these projects coming to fruition will probably be a ten-year cycle over the period 2030 to 2040 and will therefore not provide employment in the short term for those individuals affected by the current transition arrangements.  

While there may be a marginal impact on the other two INEOS assets at Grangemouth, where services are shared, it is not expected that there will be any direct impact on their operations. INEOS O&P is the petrochemical arm of the company producing chemical building blocks used in the manufacture of applications ranging from pharmaceuticals to non-drip paints, medical appliances and lightweight plastics used in the automotive industry together with many similar household uses, while INEOS FPS transports crude oil and gas liquids from the North Sea for processing and onward delivery. 

John Simpson, Managing Director of the ECIA adds, “INEOS continue to provide significant employment to the Grangemouth area and is a vital part of the local economy. The ECIA is proud to continue the support of the INEOS site.”