A New Chapter for Lindsey Oil Refinery: What's Next for Its Future?

The Lindsey Oil Refinery, located in North Lincolnshire, is set to change hands as it is sold to Phillips 66, a neighboring business that operates a refinery next door. The deal, which follows the site’s takeover by the official receiver in June due to the previous owner Prax’s collapse, signifies a pivotal moment for both the facility and the local workforce, although there are no plans to restart standalone refinery operations.

Energy Minister Michael Shanks expressed optimism regarding the sale, emphasizing that it marks a step towards securing an industrial future for the site and its workforce, who were left stranded by Prax’s mismanagement. The Unite union, however, is wary, arguing against any plans that may reduce the site to nothing more than a “glorified storage tank”. They are gearing up to demand consultations with Phillips 66 to ensure the site remains productive and supports employment.

The sale is expected to finalize in the first half of the year, with around 250 employees remaining at the plant after significant layoffs in October. The receiver’s assurance that remaining personnel will maintain jobs until the end of March adds some relief to the situation, although many are frustrated by the job losses already incurred.

Despite Philips 66’s plans to integrate and utilize existing storage and infrastructure assets, they deem the standalone refinery operations “not viable in current form.” Lead executive Paul Fursey acknowledged the challenging nature of the closure for both workers and the community, but also highlighted the potential for growth in renewable and traditional fuels as a rational for the new direction.

MP Martin Vickers expressed disappointment over the loss of operational production, emphasizing the need for a viable bid to maintain full production capabilities. He notes that while Phillips 66 is a respected employer, the loss of jobs signals a concerning trend for the local economy and community.

Councillor Rob Waltham acknowledged the positive aspect of attracting a serious investor but called for further actions and clarity regarding future plans for the site. The ongoing discussions around the company’s infrastructure, jobs, and energy security are critical as community leaders push for government involvement in safeguarding these high-quality jobs and the region’s energy resilience.

In closing, Sharon Graham, General Secretary of Unite, emphasized the need for the government to cooperate with Phillips 66 to ensure that the sale translates into job retention and creation, arguing that current policies are detrimental to workers’ welfare.