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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 20 June 2025
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Displaying 1071 contributions

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Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

To be fair, it was articulated again earlier this morning that the change is about wider macroeconomic conditions, rather than any decision that was made by the Scottish or UK Government, which I assume includes the decisions on the green freeport.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

Indeed, and that is exactly why we need a transition for the energy that we use. Alongside the environmental and economic issues, the energy security argument for transitioning our energy dependence away from hydrocarbons to renewable energy that we produce and can source here is pretty obvious, and that is why—

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

The demand will continue. We know and understand that there will be continued demand for some oil and gas products, but those demands will also diminish over time. In the meantime, the decision taken by the joint venture to invest in the import-export terminal means that energy security is maintained, which is a good thing. You will want to explore that with the UK ministers who have responsibility for that.

I understand that it is important to know when a decision will be taken about the refinery, but we have the assurance that, whenever that decision is taken, the import terminal will continue to give us energy security. That is a vital component in all of this.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

In line with what was said earlier, that is an operational matter for Petroineos, which continues to look at ensuring that it can restart the hydrocracker as quickly and safely as possible.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

Yes. That is certainly what has been articulated to me and is what was said to the committee earlier.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

I do not think that anybody should have been particularly surprised by the announcement in itself. Regarding the timing, we were told at the same point as the workforce, so there was certainly an element of surprise there.

We are talking about a century-old refinery that has had issues, where significant interventions have been made in the past and where the joint venture has provided a significant subsidy for a number of years. Therefore, the announcement was not a great surprise to us, and I do not think that it should have been to others.

The important considerations for the Scottish and UK Governments are energy security and the need to ensure that there is continued industrial capacity. We have been working on that with the joint venture and will continue to do so.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

That work is on-going. With respect, the discussion that we have already had this morning indicated that we are still working with other parties to understand the likely impact of the decision to close the refinery and, importantly, the possible mitigation of the import terminal, and what other possible investments in hydrogen, carbon capture and a potential biorefinery might be made. That work is on-going, and we will continue to publish that as quickly as we can.

An additional consideration here is the fact that the final decision has not yet been taken, though I grant Mr Kerr the point that we will be in a difficult situation with the refinery after 2025. At the moment, my energy is directed at understanding what will be important for the joint venture in making the decision on when the refinery will close, and what, if anything, we can do to assist with the extension of the refinery.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

We continue to work with partners on the Grangemouth future industry board and we continue to have discussions with the UK Government on those areas. We will continue to work on a just transition plan that will consider and articulate some of those areas. It will ensure that we are giving comfort to the communities and the people who are central to all of this that future job opportunities, future industrial capacity and a just transition can be achieved for the area.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

We will be, yes. The responsibility goes wider than the Scottish Government; it also has a UK Government element to it. We need to work with all parties involved to ensure that we are coming up with the information that we need to take decisions that we need to take around, for instance, the just transition plan and the potential opportunities for future industrial use of the site. We will continue to do all that we can to pull that together as best we can.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

I would expect the committee, and other committees across Parliament, to scrutinise it. Obviously, we will reflect on the concerns of the Just Transition Commission and take those on board as we continue to work up the just transition plan that we will publish early next year.