The announcement of a £150 million funding boost has sparked discussions about job security at Grangemouth. ExxonMobil’s chairman, Paul Greenwood, pointed to the challenging operational environment for the UK energy sector recently. He made his remarks during a session with the Scottish Affairs Committee, where he expressed concerns about the future viability of the Grangemouth site.
Concerns Over UK Energy Policy
Greenwood’s comments highlighted the adverse effects of current UK government policies on the industry. He stated that the environment for operating in the UK is “very difficult” and insufficient to sustain competitiveness. His statements came amid increasing scrutiny of the country’s energy sector.
Investment Amid Struggles
Douglas McAllister MP questioned Greenwood about the implications of the new investment. He asked if the funding contradicted Greenwood’s earlier assertions about the industry’s struggles. Greenwood concurred, noting important closures in the sector.
Key Industry Closures
- Prax refinery has ceased operations.
- Grangemouth refinery is also shut down.
- Fife ethylene plant has stopped production.
These closures, Greenwood emphasized, reflect a larger trend of distress within the UK chemicals industry. The government’s recent intervention to inject funds into another chemical plant to maintain operations further highlights these difficulties.
Looking Ahead
Despite the announcement of new funding, concerns remain about the overall health of the UK energy sector. Greenwood concluded that the current situation showcases signs of a struggling industry rather than one that is thriving.
