The UK government is to launch a new taskforce aimed at helping the country’s downstream and midstream industry see off foreign competition – but has warned that further refining capacity could be shut.
The Department of Energy and Climate Change said it was launching a new joint government and industry group to look at how best to support refinery and midstream businesses in the wake of a refining downturn.
The announcement comes just days after refinery operator Murphy Oil warned it could close the loss-making Milford Haven plant after the collapse of talks to sell the facility.
“Global commercial factors will continue to affect the refining market in the UK and the EU more broadly, and further closures across the continent are likely in future,” said energy minister Michael Fallon.
“A package of actions has been developed by government, which taken together, could help improve the operating environment for the refining and import sectors. These measures include the setting up of a new joint government and industry Midstream Oil Task Force.
“This will provide a strategic and collaborative way of working and will deliver a number of the actions from the review. The task force will be independently chaired and draw its members from across the midstream oil sector.”
The taskforce forms part of a response by DECC to a review of the country’s refining and fuel import sectors, which have suffered in the wake of increased competition from Asian refineries and the growth of the USA’s shale industry.
Last year a bitter dispute over the future of the Grangemouth plant saw operator Ineos threaten to shut down the 210,000 barrels per day refinery.
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