Britain is set to lose a refinery that failed to attract any buyers after going into insolvency in June, leaving the country with four refineries in total.
Prax Group, the owner of the Lindsey refinery, declared insolvency amid mounting losses at the facility, with several hundred jobs set to be lost if it could not sell it. The Starmer government tried to find a buyer for the refinery and energy security minister Ed Miliband even suggested financial support could be granted to refineries to avoid further insolvencies.
However, with that same government firmly determined to phase out hydrocarbons in the shortest order possible, it is hardly a surprise no buyer emerged for Prax’s troubled Lindsey refinery. It had a daily capacity of 113,000 barrels and employed 420 people in total.
“The government will ensure supplies are maintained, protect our energy security, and do everything we can to support workers and the local community, including engaging with trade unions and industry bodies,” energy minister Michael Shanks said in comments on the latest developments, as quoted by Sky News.
“The Secretary of State is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors, and the circumstances surrounding this insolvency,” Shanks also said, adding that Prax Group had left the government with “very little time to act” on finding a way to save the refinery. He further slammed the owner for putting the refinery in an “untenable position” and called on the company to provide financial support for the refinery workers.
This puts the Starmer government in a rather ironic situation where it considers adding refineries to its Energy-Intensive Industries Compensation Scheme, which was necessitated by the government’s efforts to reduce emissions from heavy energy users in the industrial sector by forcing them to find alternatives to oil and gas products.
By Irina Slav for Oilprice.com
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