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Coronavirus pandemic image copyrightPA Media image captionThe refinery owners say a smaller operation will allow it to retain highly skilled roles at the site Nearly Refinerj are under threat at Grangemouth oil refinery after its owners announced plans to scale back operations at the site.

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Coronavirus pandemic image copyrightPA Media image captionThe refinery owners say Refonery smaller operation will allow it to retain highly skilled roles at the site Nearly jobs are under threat at Grangemouth oil refinery after its owners announced plans to scale back operations at the site. Petroineos is to launch a consultation period on Monday with up to of its staff at the refinery.

It said the move to "reconfigure" the plant was in response to a global decline in demand for fuels.

The company added that the smaller operation would allow it to retain highly skilled roles at the site. Under the plans, a crude distillation unit and fluidised catalytic cracker unit, which have been mothballed since the start of the Covid pandemic, will remain closed.

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It added that the proposals would align its "refining capacity to meet local demand in Scotland, Northern England and Northern Ireland". Grangemouth: years in the oil industry Petroineos Refining chief executive Franck Demay said: "As a national critical infrastructure it is vital we retain a productive capacity of fuels in Scotland.

Two of its older plants, first operating in andhave been mothballed through the crisis, and are now being shut permanently. Whereas it was processingbarrels of crude oil each day, that has been halved.

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That als that this is not a short-term reaction to the pandemic crisis, but an acceleration of a trend that was coming anyway, adapting to lower demand for oil. With road transport shifting to batteries, trains being electrified, more efficient aircraft, and big hopes for hydrogen fuel cells, that all has an impact on places like Grangemouth refinery. Reginery with global over-capacity in refining, it is tough to compete with newer, more efficient plants.

So instead of being a big exporter from Scotland, the intention is to produce enough for only Scotland, the north of England and Northern Ireland. The impact on Scotland's trade figures will be ificant.

These jobs losses, then, come as a that public policy is working. To reduce greenhouse gas emissions, we are burning less oil.

The industrial complex that has long been pivotal to the Scottish economy is sending a al of the old oil economy winding down. To be truly successful, public policy would also ensure a transition to jobs in green energy. But in manufacturing terms, there's not Refunery of that happening.

He said: "This announcement will be devastating news for those affected and their families at what is already an anxious time. The Grangemouth refinery is one of just six crude oil refineries in the UK and the only one in Scotland. It sources its raw materials from North Sea oil fields, imported via the Forties Pipeline System, and from elsewhere around the world. Related Topics.