The future of the Lindsey Oil Refinery in Lincolnshire hangs in the balance as a potential buyer has shown interest in acquiring the facility. This development comes after the refinery’s owner, Prax Group, filed for insolvency in late June 2023, prompting concerns about the site’s future and local employment.
The refinery, which has been operational since 1968 and can process up to 113,000 barrels of oil per day, was set to cease operations following Prax Group’s insolvency declaration. A UK court subsequently appointed a liquidator for both the Lindsey Oil Refinery and its associated storage and terminal units, Prax Storage Lindsey Limited and Prax Terminals Killingholme Limited. The insolvency was attributed to escalating financial losses experienced at the facility.
In an effort to mitigate the refinery’s closure, the UK government, led by Energy Security Minister Ed Miliband, explored options for finding a new owner. Miliband indicated that financial support could be available to help refineries in distress. However, in July, Energy Minister Michael Shanks stated that “no credible offers have been made to purchase the entire refinery” and announced that operations would be gradually winding down.
Production at the Lindsey Oil Refinery halted shortly thereafter, with officials confirming that fuel production ceased on August 1, 2023, due to a lack of crude oil supply, as indicated by trade unions.
Recent developments have sparked renewed hope, as local politicians have reported that a prospective buyer has expressed interest in the refinery. Rob Waltham, leader of North Lincolnshire Council, and Martin Vickers, Member of Parliament for Brigg and Immingham, have both confirmed the emergence of potential buyers but have not disclosed specific details. Waltham remarked, “To have people who are interested in protecting jobs at this stage of the game is very heartening.”
Waltham emphasized the importance of government support in facilitating the sale, urging officials to continue advocating for a comprehensive acquisition of the site.
While the government seeks solutions, it has reassured the public that the closure of one of the UK’s five refineries will not threaten fuel supplies or significantly increase reliance on imports. The situation at the Lindsey Oil Refinery serves as a pivotal moment for both local employment and the broader energy landscape in the UK.
As discussions continue, the local community remains hopeful for a resolution that preserves jobs and sustains the refinery’s legacy as a crucial player in the UK’s energy sector.
