Page 154 - CW E-Magazine (12-12-2023)

News from Abroad

UNVIABLE OPERATIONS
Scotland’s sole oil refinery set to close in 2025

PetroIneos, the joint venture (JV) of
PetroChina and Ineos, is preparing to
shut down its Grangemouth oil refinery
in Scotland to convert it into a fuel
import terminal as it faces growing
international competition.
The 150,000-bpd (barrels per day)
refinery, Scotland’s only and one of six
in Britain, is expected to continue ope-
rating until 2025, PetroIneos said in a
statement. Although it is a major sup-
plier of fuels, such as gasoline, diesel
and aviation fuel to Scotland, the plant
has faced significant challenges due to
growing global competition, particularly
from newly-built refineries in Asia and
the Middle East.

PetroIneos will soon start prepara-
tory work to enable the future transfor-
mation of the refinery into a fuel import
terminal. The timescale for the shutdown in demand for the type of fuels we The company will also seek to
is yet to be determined exactly, but the pre- produce,” said Mr. Franck Demay, convert its existing export terminal at
paratory work is expected to take around CEO, PetroIneos Refining. Finnart, which is linked to Grangemouth
18 months, with the refinery expected to by cross-country pipelines, into a diesel
continue operating until 2025. Converting refineries into storage import facility. PetroIneos said it is also
terminals is often far cheaper than a evaluating a range of low-carbon op-
“As the energy transition gathers full shutdown as the operator is not portunities for Grangemouth, including
pace, this is a necessary step in adapt- required to fully restore the land to its the feasibility of a bio-refinery facility
ing our business to reflect the decline former state. on the site.

CHANGE OF PLANS
AkzoNobel and Kansai Paint not to proceed with

African transaction

Paint firms, AkzoNobel and Kansai the Common Market for Eastern
Paint, have mutually agreed not to pro- and Southern Africa (COMESA), an
ceed with AkzoNobel’s intended acqui- economic community in Africa with 21
sition of Kansai’s paints and coatings member states stretching from Tunisia
activities in Africa. The two companies to Eswatini, halted the merger stating
have agreed that no break-up fee will the transaction would have created
be involved. intention to acquire the African paints “significant market share accretion and
and coatings activities from Japan’s reduced choice in the market for deco-
In June 2023, the Dutch paints and Kansai Paint. However, in October, a rative coatings in Eswatini, Zambia and
coatings producer had announced the regional competition commission under Zimbabwe.”

154 Chemical Weekly December 12, 2023
Contents Index to Advertisers Index to Products Advertised