Further speculation over future of Grangemouth
Petrochina is close to hiring restructuring experts to advise on its options for the Grangemouth oil refinery amid further speculation that it could sell its half stake in the business.
The state-owned company bought a 50% share in the facility in 2011 from Sir Jim Ratcliffe’s Ineos Group.
However, pre-tax losses at Petroineos Manufacturing Scotland, the subsidiary that owns the refinery, rose from £2.2 million in 2018 to £26.1m in 2019 and £89.9m in 2020 as fuel demand fell during Covid.
Daily Business reported last month that PetroChina is close to hiring restructuring experts to advise on its options and that it wants renewables to make up a third of its energy portfolio by 2030 and 50% by 2050.
The Sunday Times reports that the company’s representatives have indicated that it wants to sell out of Grangemouth which supplies jet fuel to Scotland’s airports, as well as two-thirds of the petrol and diesel for forecourts in Scotland, plus significant volumes in Northern Ireland and the north of England.
It is understood that Ineos would not be interested in buying PetroChina’s stake.
The complex includes a petrochemicals business and a connection to the Forties Pipeline, which brings almost 40% of the UK’s North Sea oil and gas ashore.
The petrochemicals business and the Forties Pipeline are owned separately to the oil refinery.