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Grangemouth oil refinery officially closes after 100 years in operation. Photo credit: yahoo

Grangemouth Refinery Halts Operations: Transition to Import Hub, Calls for Policy Reform, and Strategic Implications for Scotland's Energy Sector.

The end of crude oil processing at Scotland’s Grangemouth refinery marks a pivotal moment for the nation’s industrial and energy landscape. Petroineos, a joint venture between INEOS and PetroChina (CNPC), confirmed in late April 2025 that the site would transition from refining to serving as an import terminal for finished fuels, following sustained financial losses and mounting competition from larger, more efficient refineries abroad. This closure brings an end to more than 70 years of refining at Grangemouth, with the loss of around 400 jobs and significant concern for the local community, which has long depended on the site for stable employment and economic security

The decision has been met with regret and frustration by many in Scotland, including the Scottish Government, which described the closure as premature and detrimental to both the economy and the country’s transition to net zero. Workers and unions have voiced deep concerns about the lack of consultation and the adequacy of transition plans, fearing a repeat of the economic decline seen in other former industrial communities. While some government support for retraining and local investment has been pledged, the loss of Grangemouth’s refining capacity is widely seen as a blow to the region’s industrial fabric and a test of policymakers’ commitment to managing the energy transition responsibly.

Against this backdrop, INEOS Chairman Sir Jim Ratcliffe has been outspoken in his criticism of the UK’s energy and environmental policies. Ratcliffe argues that high energy costs and carbon taxes-particularly those imposed under the UK Emissions Trading Scheme (ETS)-are “squeezing the life out of” British industry and making it uncompetitive globally. INEOS faces a £15 million bill for carbon emissions at Grangemouth for 2024 alone, a cost Ratcliffe says is forcing the company to pause critical investments in green projects and efficiency upgrades. He warns that such policies risk accelerating deindustrialization, citing energy bills that are 400% higher than those in the US and double the European average. “This is not just INEOS; this is a reality for British manufacturers across the nation: carbon taxes and soaring energy costs are suffocating the industry,” Ratcliffe said. He has called for a fundamental rethink of the UK’s approach, urging, “Give us competitive energy costs, give us the incentives to invest in new assets and to play our part in building a strong sustainable industrial future,” emphasizing the need for entrepreneurial freedom and lower taxes to allow the energy sector to function and invest in decarbonization.

Strategically, the closure of Grangemouth means Scotland will now import all of its motor fuels, relying entirely on international supply chains to meet domestic demand. This shift increases exposure to global market fluctuations and supply risks, reducing the country’s energy self-sufficiency. While Petroineos has emphasized that the new import terminal will safeguard fuel supply for Scotland, the loss of domestic refining capacity leaves the nation more vulnerable to external shocks and diminishes its leverage in shaping fuel standards and supply terms. In effect, Scotland’s energy security and industrial autonomy have been significantly lowered, underscoring the far-reaching consequences of the Grangemouth closure for both the local community and the wider Scottish economy.

#petroineos  #grangemouth  #refinery  #refining  #ineos  #cnpc  #petrochina  #plantclosure  #carbontax  #energytransition  #netzero  #ratcliffe 

Ethylene Production Optimization in the Chiba Area scheduled for completion in fiscal year 2026.

April 1, 2025

Sumitomo Chemical Co., Ltd. and Maruzen Petrochemical Co., Ltd. (a subsidiary of Cosmo Energy Holdings Co., Ltd.) have announced a significant change to their ethylene production operations in the Chiba area. Maruzen Petrochemical will shut down its own ethylene production facilities by fiscal 2026, and all ethylene production will be consolidated at Keiyo Ethylene Co., Ltd. Keiyo Ethylene is a joint venture between Maruzen Petrochemical, which holds a 55% ownership stake, and Sumitomo Chemical, which holds 45%. The shareholding ratio will remain the same after the consolidation.

This move comes in response to several challenges facing the industry, including a global oversupply of ethylene due to new, large-scale plants in China, as well as declining domestic demand for ethylene in Japan. Both companies recognize the need to improve operating rates, lower costs, and reduce CO₂ emissions to remain competitive.

By consolidating production at Keiyo Ethylene, which is Japan’s most advanced and largest ethylene facility, Sumitomo Chemical and Maruzen Petrochemical aim to increase the operating rate and competitiveness of the Chiba petrochemical complex. The consolidation is also expected to lower fixed costs and advance green transformation initiatives, supporting the companies’ efforts to achieve net zero carbon emissions.

The Maruzen Chiba Plant, operated by Maruzen Petrochemical since April 1969, currently has a capacity of 525,000 tons per year (or 480,000 tons during repair years). Keiyo Ethylene, which began operations in December 1994, has a capacity of 768,000 tons per year (or 690,000 tons during repair years). The optimization and consolidation of ethylene production are targeted for completion by fiscal year 2026.

Overall, this consolidation is designed to ensure the long-term competitiveness and sustainability of the Chiba petrochemical complex by focusing production at the most efficient site and supporting environmental goals.


#sumitomo  #maruzen  #chemicals  #ethylene  #chiba  #japan  #consolidation  #keiyo  #cracker  #steamcracker  #ethyleneplant  #plantclosure 

Rotterdam, Netherlands, 11 Feb 2025 - Chemical manufacturing giant LyondellBasell has announced plans to shut down its propylene oxide (PO) and styrene monomer (SM) production facility at Maasvlakte in the Rotterdam port area. The closure marks a significant shift in the company's European operations and will impact the regional petrochemical landscape.

According to company officials, the decision comes after a comprehensive strategic review of LyondellBasell's global asset portfolio, with the Maasvlakte plant deemed no longer economically viable in the current market environment. The facility, which has been operational since the early 2000s, has faced increasing pressure from newer, more efficient production sites in Asia and the Middle East.

Industry analysts point to several factors contributing to the closure, including high European energy costs, increasing global competition, and shifting market demands. The company will reportedly maintain its other Dutch operations, including facilities in Rotterdam's Botlek area.

Propylene oxide and styrene monomer are key ingredients used in the production of polyurethanes, plastics, and synthetic rubbers found in numerous consumer and industrial products. Market observers suggest that LyondellBasell will likely meet European demand for these products through its remaining facilities and strategic supply agreements.

The plant is expected to complete a phased shutdown by the end of the year, following appropriate decommissioning procedures and environmental protocols.

#posm  #smpo  #lyondelbasell  #propyleneoxide  #styrene  #dutchplant  #thenetherlands  #plantclosure