The Lindsey Oil Refinery in the UK could be saved from closing as a potential buyer has emerged with interest to take over the site in Lincolnshire and continue run it as a crude processing facility, local politicians have told the BBC.
The refinery, built in 1968 with the capacity to process up to 113,000 barrels of oil per day (bpd), was set to close after its owner, Prax Group, filed for insolvency in late June.
A UK court appointed a liquidator for Prax Lindsey Oil Refinery, as well as the storage and terminal units, Prax Storage Lindsey Limited, and Prax Terminals Killingholme Limited.
Prax Group declared insolvency amid mounting losses at the facility. The Labour government tried to find a buyer for the refinery and Energy Security minister Ed Miliband even suggested financial support could be granted to refineries to avoid further insolvencies.
The UK’s Energy Minister Michael Shanks said in July that “no credible offers have been made to purchase the entire refinery and it will be winding down operations.”
The refinery ended fuel production in early August as crude oil supply ran out on August 1, officials and trade unions said.
Now, a few weeks later, two local politicians told the BBC that a prospective buyer for the refinery has emerged, but declined to disclose details.
North Lincolnshire Council leader Rob Waltham and Martin Vickers, MP for Brigg and Immingham, said there was the potential buyer that could save the site as an operating refinery.
“To have people who are interested in protecting jobs at this stage of the game is very heartening,” Waltham told the BBC.
“We’re urging the government to keep advocating and supporting someone to buy the site as a whole.”
The government, while trying to save the refinery, has said that the closure of one of five refineries would not endanger the UK’s fuel supply and “will not make us significantly more dependent on imports.”
By Tsvetana Paraskova for Oilprice.com
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