Fears are growing for the future of a critical North Sea oil refinery as its Chinese backer prepares to appoint restructuring advisers, according to the Sunday Times.
Grangemouth in Falkirk, which processes 150,000 barrels of crude oil a day and employs more than 600 people, is part-owned by PetroChina, a state energy giant based in Beijing.
PetroChina bought a 50% stake in 2011 from Sir Jim Ratcliffe’s Ineos Group, which in turn acquired Grangemouth in 2005 as part of a portfolio of assets from BP.
Under the terms of the 2011 joint venture, PetroChina is understood to be responsible for most of Grangemouth’s financing requirements. The Chinese company is said to have become increasingly frustrated by the burden.
The Sunday Times reports that the company’s representatives have indicated that it wants to sell out of Grangemouth which supplies jet fuel to Scotland’s airports, as well as two-thirds of the petrol and diesel for forecourts in Scotland, plus significant volumes in Northern Ireland and the north of England.
It is understood that Ineos would not be interested in buying PetroChina’s stake, according to the Daily Business Group.
The complex includes a petrochemicals business and a connection to the Forties Pipeline, which brings almost 40% of the UK’s North Sea oil and gas ashore.
The petrochemicals business and the Forties Pipeline are owned separately to the oil refinery.