Last Friday, it was revealed the Finnart oil terminal will close with the loss of 20 jobs.
The announcement came in the wake of the news that the Grangemouth refinery – connected to Finnart via a pipeline – would close with the loss of hundreds of jobs.
Last November Petroineos said that the terminal on Loch Long would remain open regardless of Grangemouth’s potential closure, being converted into a diesel import facility.
But today the company said that had been ruled out as too expensive – although since then a leak on the pipeline has seen it operate at below peak pressure.
Read more: Glen Fruin oil leak raised at Holyrood for third time
A Petroineos spokesperson said that the ‘current position‘ was to close Finnart, subject to consultation.
They added: “Since the announcement in Nov 2023, Petroineos has spent over £1m studying the Finnart conversion option in detail, including with the support of independent consultants.
“The conclusion of that study work is that the conversion is not necessary to maintain reliable supply of fuels into Scotland.
“Instead, our intention is to develop a “virtual pipeline” of finished fuels from our European trading hub direct into the Grangemouth jetties for dispatch to customers.
“This will involve Petroineos taking a secured position through the whole supply chain: we have long-term global fuel supply contracts to draw on, bulk storage options for our fuels in ARA, and long-term charters of vessels required to shuttle products direct into the Grangemouth jetties.
“This supply optimisation, in parallel with a £30m investment in Grangemouth tankage and logistics, is a robust and cost-effective plan to ensure we continue to reliably deliver fuels to Scottish consumers long into the future.”
The 20-inch pipeline was connected in 1954, enabling supertankers at the deep-water jetty on Loch Long to connect with Grangemouth 58 miles away.
As well as the jetties on the seaward side of the A814 road there are storage tanks built into the hillside to the east.
Dumbarton constituency MSP Jackie Baillie said: “My first thoughts are with the workforce and the 20 people who will lose their jobs.
“I will raise this with Michael Shanks MP, the new Energy Minister and will work with the trade unions to try and secure jobs and the site.”
West of Scotland regional MSP Ross Greer said: “It’s a bleak day for the 20 workers at Finnart who face losing their jobs.
“The Scottish Greens will continue working with trade unions to support the hundreds of affected workers across both sites.
“This decision comes after years of inaction from governments and industry, who should have been planning a just transition for Grangemouth and Finnart.
“It’s not like this decision has come out of the blue. That lack of planning was starkly illustrated the day before this announcement by the SNP publishing a Scottish Government Green Industrial Strategy with zero mention of Grangemouth or Finnart.
“Both governments are now reacting to events rather than implementing a pre-agreed plan to protect jobs.”
