Emergency Fuel Deal Secures Future for Struggling Immingham Refinery Amid Job Threats

A critical deal has been struck to ensure the steady supply of crude oil to the Prax Lindsey Oil Refinery, located in Immingham, North East Lincolnshire, after its owner filed for administration. The insolvency announcement on Sunday put the jobs of hundreds at risk, stirring concerns about the facility’s future.

The Department for Energy Security and Net Zero (DESNZ) has confirmed that this agreement will allow for the resumption of deliveries to and from the refinery. To facilitate operations, crude oil stocks that were already present on-site have been purchased with taxpayer funds. According to reports, the government was in discussions with Glencore, a commodities trader, regarding its supply contracts with the refinery.

In a recent communication, a DESNZ spokesperson stated, “An agreement has been reached to resume deliveries in and out of the Prax Lindsey Oil Refinery. The official receiver is ensuring continued safe operations at the site.” This development comes amid assurances that the UK remains adequately supplied with fuel, with Lindsey refinery located adjacent to the Phillips 66 Humber refinery, one of the nation’s most efficient and profitable refineries.

Prax Group, under the leadership of Sanjeev Kumar Soosaipillai, acquired Lindsey from the French company Total in 2021. However, financial statements revealed that the refinery suffered losses of approximately £75 million from the time of purchase until February 2024. With 420 direct employees at risk, the situation could potentially affect up to 1,000 jobs when accounting for contractors and the wider supply chain, as noted by Unite the Union.

Energy Minister Michael Shanks addressed the Commons, asserting that workers had been “badly let down” and called for an immediate investigation into the company’s directors and the events leading to the insolvency. The government is now actively seeking a buyer for the refinery while exploring alternative uses for the site if a buyer is not found.

Overall, the Lindsey Oil Refinery stands as the smallest of the UK’s oil refineries, but its unexpected financial woes have cast a shadow over the immediate job security of workers and the region’s fuel supply stability.