General Question Time – in the Scottish Parliament at on 10 October 2024.
To ask the Scottish Government what impact it anticipates that the planned closure of Grangemouth oil refinery will have on the Forties pipeline system and associated jobs and businesses. (S6O-03840)
We continue to engage constructively with businesses at Grangemouth to fully understand the impact that the closure of the refinery will have on the area, in particular on employment.
Ineos has confirmed that the Grangemouth refinery does not process significant volumes of Forties pipeline system derived crude, with the majority of the asset’s feedstocks being imported. Therefore, it is expected that the refinery’s closure will have limited impact on the Forties pipeline system.
More generally, and as outlined in the Scottish Government’s draft energy strategy, oil extracted from the North Sea is predominantly exported to international markets.
The cabinet secretary’s complacency is extremely concerning, because industry voices and experts warn that the Forties pipeline—which connects 80 fields to the mainland and enables around 59 per cent of the United Kingdom’s oil and gas to reach customers—could shut down as early as 2030 due to the fiscal and licensing regime that both of Scotland’s Governments are pursuing. The GMB says that both Governments have taken a hostile, fundamentally dishonest position on the realities of oil and gas.
Will the cabinet secretary be honest and tell us when the delayed, discredited draft energy strategy will finally be published and whether the deeply damaging presumption against oil and gas will be removed?
It is somewhat bizarre to hear a member discredit a strategy that has not yet been published.
The oil and gas fiscal regime and the UK energy profits levy, which the member referenced, were reserved to the UK Government and introduced under the predecessor regime to the current Labour Government. I agree with Liam Kerr on one point, which is that we have consistently called for a fiscal regime for North Sea oil and gas that provides stability and certainty to businesses, protects jobs based in Scotland, and incentivises investment in renewables.
I confirm that the Government is concerned about energy security. It believes that we should do everything in our power to support the transition and never lose sight of the importance of energy security in that process.
On the specific issue of the Forties pipeline system—
Very briefly, please.
We recognise that it is critical and will continue to work hard to support the careful management of the North Sea energy transition.