An energy minister has insisted fuel supplies will not be under threat after no buyer was found for one of Britain's largest oil refineries. The Lindsey refinery in North Lincolnshire faces closure following the collapse of its parent company into administration.
State Oil - the parent company of Prax Group, which owns the Lindsey refinery - collapsed into administration last month, putting hundreds of jobs at risk. Michael Shanks pledged to support workers facing redundancy but said the Government has limited power to improve statutory redundancy payments.
Government response to closure
Speaking in the Commons, Shanks said: "We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers. This has also allowed time for bidders to express an interest in the site."
The official receiver conducted a thorough assessment of all bids received but concluded that selling the business as a whole was not viable. Following the rigorous process, no credible buyer emerged for the entire operation.
Support package for workers
A package has been offered to all directly employed workers at the refinery, guaranteeing their jobs and pay over the coming months. The Government will immediately fund a comprehensive training guarantee for refinery workers to help them find employment in sectors such as the growing clean energy workforce.
The Lindsey site represents one of only five large oil refineries remaining in the UK following the recent closure of the Grangemouth plant in Scotland. Prax Group is led by majority owner and chairman Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021.
Opposition concerns raised
Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed for updates on the investigation into the company's collapse. He questioned what assessment had been made of the UK's resilience given the steep reduction in refining capacity over recent months.
Bowie also asked about the increased reliance on imports that would be necessary following the reduction in British refining capacity. Shanks responded that fuel supplies had "adjusted" in recent weeks, adding: "Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that."
Local MP seeks maximum support
Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see "the maximum support given to those workers". Shanks replied that the Government had explored all possible additional support options but was constrained by insolvency service rules.
The minister criticised the company's owners, stating: "I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them." The insolvency service continues to investigate the circumstances surrounding the company's collapse.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
