In 2017 The Ineos Refining Business

Grangemouth Refinery is a mature oil refinery advanced located on the Firth of Forth in Grangemouth, Scotland. Presently operated by Petroineos, it is the one crude oil refinery in Scotland (and will probably be the one working oil refinery following the cessation of refining actions at the Dundee Refinery[1]) and currently one in all six within the UK. It’s reputedly the UK’s second-oldest refinery, and it provides refined merchandise to customers in Scotland, northern England and Northern Ireland, as well as often further afield.

Bending machine1 History 1.1 Location
1.2 Easy Refinery: 1924-1939
1.3 Petrochemical complex: 1946-1975
1.4 North Sea Oil: 1975-2004
1.5 Post-BP Period: 2004-current


Grangemouth Refinery commenced operation in 1924 as Scottish Oils. Its location at Grangemouth was chosen as a result of adjacent Grangemouth Docks which supported the import by ship of Center East crude oils for feedstock, plus a budget availability of giant areas of reclaimed flat land. Another vital issue was the ample availability of skilled labour in shale oil refining: the first oil works on the earth, ‘Younger’s Paraffin Light and Mineral Oil Firm Restricted’, had opened in 1851 at Boghead close to Bathgate, to provide oil from shale or coal utilizing the method patented in 1850 by Glasgow scientist Dr James Young (generally known as “Paraffin” Young), for “treating bituminous coals to acquire paraffine therefrom”.

With the world’s first oil wells coming on-line in 1859 in Pennsylvania within the USA, the worldwide worth of oil dropped and many Scottish shale oil works turned un-economical and needed to either close or focus production on different materials. By 1910 only 5 major Scottish shale oil firms remained, preventing to stay aggressive in opposition to cheaper imported American oil. Throughout the first World Battle the British authorities helped to develop new fields in Arabia to offer cheap oil to sustain the warfare effort. This drove prices even lower to some extent where the shale oil industry was unable to compete, and as a lead to 1919 the six surviving corporations (including Youngs) got here collectively beneath the administration of the newly formed Scottish Oils. That same 12 months Scottish Oils was purchased by the Anglo-Persian Oil Company, a forerunner of the British Petroleum Firm (later referred to as BP)

Easy Refinery: 1924-1939[edit]

The Refinery operated from 1924 to 1939 at a throughput of 360,000 tonnes per 12 months. It was then pressured to shut down between 1939 and 1946 by World War II and the resulting drying up of crude feedstock imports. When operations recommenced in 1946, the refinery underwent a variety of main enlargement programmes.

Petrochemical advanced: 1946-1975[edit]

In the 1940s the Distiller’s Company Ltd were investigating synthetic processes for the production of alcohol, to substitute the standard fermentation course of utilizing molasses and so resolve issues with unreliability of provide and the associated cost fluctuations. This enterprise need mixed with BP’s interest in petrochemical growth resulted in 1947 within the formation of a joint firm, British Hydrocarbon Chemicals Ltd. The new company located its site adjoining the existing BP Grangemouth Refinery, utilising out there feedstock from the refinery byproduct streams. This petrochemical plant was commissioned in 1951, the primary in Europe.

Within the 1950s the refinery was connected to the Finnart Oil Terminal at Loch Lengthy on the west coast of Scotland by a 58-mile (ninety three km) pipeline, to permit the import of crudes via deep-water jetty, which supported using larger oil tankers. The primary crude oil import from Finnart was in 1952.

Later on in the century a second line was also put in to permit the direct provide of finished refinery products to the Finnart terminal, primarily for export to markets in Northern Ireland and the republic.

Within the 1960s, a pilot “proteins-from-oil” manufacturing facility was constructed on the refinery. It used British Petroleum’s technology for feeding n-paraffins to yeast, in order to supply single cell protein for poultry and cattle feed.[2]

BP’s operations at Grangemouth grew over the next twenty years to meet the growing demands for both petrochemicals and fuels.

North Sea Oil: 1975-2004[edit]

In 1975 the discovery of North Sea Oil brought the commissioning of the Kinneil Crude Oil Stabilisation terminal, which linked directly into the INEOS Forties pipeline system; this plant serves to stabilise Forties Crude oil for both export to third parties or feeding into the refinery, and allowed the processing of North Sea oil as part of the refinery crude ‘slate’ of feedstocks.

Submit-BP Period: 2004-present[edit]

In 2004 BP determined to divest its worldwide olefins and derivatives enterprise: the sale included the Refinery and linked petrochemicals complex (excluding the Kinneil terminal, which BP retains). In 2005 the new firm created to run this business was named Innovene, and later that yr it was bought by Ineos, a privately owned UK-primarily based chemicals company.

In 2011 the Ineos Refining business, which included each the Grangemouth and Lavera (outside Marseilles, France) Refineries, entered right into a 50%/50% joint venture with the Chinese language state oil company Petrochina, to form the PetroIneos firm.

Grangemouth Refinery right this moment employs over 1300 people over a seven-hundred hectare site.

Scenes from the 2013 film World Warfare Z that includes Brad Pitt were filmed close to the ability.[Three][four][5]


The Grangemouth Refinery is a serious landmark, with its numerous fuel flares and cooling towers visible across a large area of the Scottish Lowlands.

The refinery has a ‘nameplate’ capacity for processing 210,000 barrels (33,000 m3) of crude oil daily. It currently employs about 1,200 permanent staff, and an extra 1,000 contractors.

It processed approximately four hundred,000 tonnes of imported crude oil yearly till the tip of the Second World Struggle, and subsequent growth programmes have elevated refining capacity to an excess of 10 million tonnes per yr.[6]

The INEOS-owned North Sea Forties pipeline system terminates at the Kinneil processing facility, and surplus crude is exported through pipeline to the Dalmeny tank farm, and subsequently shipped out from the Hound Point marine terminal onto oil tankers of as much as 350,000 D.W.T. which are able to navigate the shallow water of the Forth.

Annual output share[edit]

Petrol – 22%
Diesel – 24%
Kerosene & Jet fuel – 13%
Fuel oil – eight%
– Gas oil – 15%
LPG/petrochemical feedstocks – 12%
Gasoline gas/other – 6%
Waste – 1%

Security record[edit]

One of many refinery’s greatest accidents occurred at 7am on Sunday 22 March 1987 when the HydroCracker Unit exploded. The ensuing vibrations and noise could possibly be heard up to 30 km away. The ensuing fire burned for most of the day. One worker was killed.[7] Simply 9 days earlier on the 13 March, one other incident occurred involving the refinery flare line, the resulting fireball killed two workers.[Eight]

In 2002, BP the earlier house owners of the plant, had been fined £1m for breaching safety legal guidelines during a sequence of incidents which occurred in 2000.[9]

Ineos went to court in April 2008 over claims that it had polluted the River Forth in mid-2007.[10]

Ineos industrial disputes[edit]

In 2008, Ineos proposed that plant workers begin contributing a share towards their own pensions (a closing salary pension scheme[eleven]), as a substitute of the prevailing non-contributory fastened salary pensions. The request would have obliged future new entry employees to pay 6% of their wage, phased in over a six-yr period. Ninety seven% of the Unite commerce union’s 1,250 members at Grangemouth voted in favour of strike action. David Watt, of the Institute of Administrators in Scotland, stated that the common Grangemouth Refinery plant worker earns £40,000 per yr (practically twice the Scottish common.)[12] This was disputed by the Deputy Basic Secretary of the Scottish Trades Union Congress, Dave Moxham, who said that they earn £30,000 per yr.[11]

The strike started on 27 April 2008, and lasted till 29 April.[Thirteen] The petrol supply of Scotland was affected by the strike, as panic shopping for led some petrol stations across the nation to run dry.[14] The Retail Motor Industry Federation acknowledged that there was a inventory of gas that would final 70 days, simply protecting the lapse in production so lengthy as no panic buying occurred.[15] With the shutdown of the plant, BP closed the Forties pipeline system as their Kinneil terminal depends on energy from the Grangemouth refinery.[Sixteen] With the shutdown of Kinneil, 70 North Sea oil platforms had been pressured to shut down or cut back manufacturing, at the price of 700,000 barrels per day (110,000 m3/d).[Sixteen] Shutting the pipeline down decreased Britain’s petroleum provide (the Forties pipeline gives 30% of the UK’s North Sea oil), and price the UK financial system £50 million in misplaced manufacturing on daily basis it remained closed.[17]

There was additional industrial motion in 2013. Ineos stated that the plant was making losses, and provided a survival plan requiring workers to simply accept worse employment phrases, significantly on pensions, which the workers rejected.[18][19] Ineos stated in October 2013 that the petrochemical works would close.[20][21] Following negotiations led by Scottish Finance Secretary John Swinney and Scottish Secretary Alistair Carmichael, on 24 October the unions accepted a survival plan put forward from the management of the plant.[22] On 25 October 2013, it was introduced the plant will keep open and Unite had agreed to taking no strike motion for three years, transferring to a brand new pension scheme and accepting a three-12 months pay freeze.[23]

2009 Jaipur fire
Esso Refinery, Milford Haven
2005 Hertfordshire Oil Storage Terminal hearth

^ Bamberg, J. H. (2000). British Petroleum and global oil, 1950-1975: the problem of nationalism. Quantity 3 of British Petroleum and Global Oil 1950-1975: The Challenge of Nationalism, J. H. Bamberg British Petroleum series. Cambridge College Press. pp. 426-428. ISBN 0-521-78515-4.
^ pictures/w/World-Conflict-Z.html#.VGZm8MmhpCs
^ UKPIA – Overview of Grangemouth Facility Archived 2008-04-25 at the Wayback Machine.
^ The Hydrocracker Explosion and Fireplace at BP Oil, Grangemouth Refinery. 22 March 1987
^ “BP fined £1m for security offences”. BBC News. 18 January 2002. Retrieved four Could 2010.
^ “Courtroom motion for refinery bosses”. BBC Information. 22 April 2008. Retrieved four May 2010.
^ a b “Workers left with no various”. BBC News. 23 April 2008. Retrieved four Could 2010.
^ “‘Be practical’ name to petrol employees”. BBC Information. 22 April 2008. Retrieved four May 2010.
^ “Deal could finish refinery dispute”. BBC News. 29 April 2008. Retrieved 4 Might 2010.
^ “The petrol picture in Scotland”. BBC News. 25 April 2008. Retrieved 4 Could 2010.
^ “Q&A: The Grangemouth dispute”. BBC News. 28 April 2008. Retrieved 4 Might 2010.
^ a b “Opec warns oil may attain $200”. BBC Information. 28 April 2008. Retrieved four Could 2010.
^ “‘Weeks’ to re-begin strike plant”. BBC News. 26 April 2008. Retrieved 4 Could 2010.
^ Anthony Clark (17 October 2013). “Unite accuses Ineos of ‘fancy accounting’ over Grangemouth”. Plastics & Rubber Weekly. Retrieved 25 October 2013.
^ Douglas Fraser (18 October 2013). “Shedding light on Grangemouth”. BBC. Retrieved 25 October 2013.
^ “Grangemouth dispute: Ineos says petrochemical plant will shut”. BBC News. 23 October 2013. Retrieved 23 October 2013.
^ “Grangemouth plant shutdown leaves authorities fighting to avoid wasting 800 jobs”. The Guardian. 23 October 2013. Retrieved 23 October 2013.
^ “Grangemouth dispute: Hopes rise after Unite accepts survival plan”. BBC Information. 24 October 2013. Propylene Equipment Retrieved 24 October 2013.
^ “Grangemouth dispute: Ineos says plant will keep open”. BBC News. 25 October 2013. Retrieved 25 October 2013.

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