Saturday, June 02, 2012

significant UK light crude refinery to shutdown this week...,

No doubt closing due to a multitude of interlinked factors. But basically not making profits for the owners anymore. The raw material is changing. While still nominally called "oil" it is moving to the heavy stuff rather than the light, easily refined oils of the recent past. To continue in business Coryton needs a major rebuild. They are probably not prepared to invest millions in a site that, in a few years, will have nothing to sell. Plus the markets are shifting. China, India are buying up the oil while the tired old economy of the UK has not got the financial clout to buy increasingly expensive oil. The chilling statement here, one that reverberates, full of portent for the coming days, is simply, "The plant will run out of crude oil to refine, and there are no ships on the way".

Guardian | The UK's financially strapped Coryton refinery will run out of crude oil and shut down in phases beginning by the middle of next week, its joint administrator has said.

The prospects of finding a buyer for Coryton look increasingly remote, warned Steven Pearson of PricewaterhouseCoopers.

The refinery was one of several owned by Petroplus, Europe's largest independent refiner, before it declared insolvency.

Pearson said: "The plant will run out of crude oil to refine, and there are no ships on the way," adding that staff would remain for the time being to help shut the plant safely. "We will not announce any immediate redundancies – we'll have more detail in a week's time."

The plant employs 900 people including contractors.