A UAE-based firm has confirmed an offer to buy the Grangemouth refinery in Scotland, but current owner Petrineos said it is not a “viable bid”.
In a press release, Dubai-headquartered Trading Stack DMCC broke cover and said it is looking to acquire the Grangemouth refinery alongside an unnamed US partner.
Earlier this week, media reports linked Trading Stack with a bid from a consortium led by American energy sector veteran Robert McKee.
The Grangemouth refinery is set to cease operations in 2025, with the loss of 400 jobs, as part of Petroineos plans to transition the site into a fuels import terminal.
Petroineos – a joint venture between PetroChina and Ineos – blamed market pressures and the energy transition for the decision to close the refinery.
The move has attracted strong criticism from unions, amid concern over the economic impact and the lack of a “just transition” for Scotland’s oil and gas workers.
Who is Trading Stack DMCC?
According to its website, Trading Stack is a “family run professional commodities trading company”, specialising in oil and gas, precious metals, sugar and cryptocurrency.
The company, boasts its chief executive Ihsan Al-Sabbagh, has “vast experience” in oil and gas, as well as connections to billionaire banker and oil investor Roger Tamraz.
In a statement, Trading Stack said it has “finance in place” and is confident of being able to “return the refinery to profitable growth”.
© Andrew Milligan/PA WireAl-Sabbagh insisted it has a “clear strategy” for Grangemouth which will maintain the current workforce and ensure “security of supply” for Scotland and the UK.
“This entails an element of shared ownership with employees, as we look to align our interests and the refinery as a profitable operation with the workforce,” he said.
“We call for urgent action by all parties while there is still time to save the Grangemouth refinery.”
Trading Stack did not elaborate on what its strategy for the refinery entails, but claimed it has had “positive interactions” with Grangemouth stakeholders, including the Unite union, Petroineos and local politicians since making its offer.
No ‘credible’ offer for Grangemouth
However, in response to questions from Energy Voice a spokesperson for Petroineos dismissed the Emirati firm’s offer to buy the refinery because it was not “credible”.
“None of the parties to have approached Petroineos about buying the refinery have passed the most basic due diligence checks carried out by us and the Scottish Government.
“We have not received any credible expressions of interest in the refinery, never mind a viable bid.”
© Supplied by Scottish EnterpriseThe Petroineos statement comes after media reports revealed a Canadian businessman as the backer of a separate bid for Grangemouth in September.
Falkirk East MSP Michelle Thomson had told a Holyrood debate she was working with a third party buyer on a potential bid for Grangemouth.
But according to Petroineos, the refinery is currently losing “£385,000 on average each day” and is on track to lose more than £150m in total during the course of this year.
Union calls for SAF production at Grangemouth
But the Unite union has disputed claims from Petroineos that the refinery is not profitable.
Unite Scotland regional secretary Derek Thomson told a Holyrood committee that the Grangemouth site was “a relatively profitable and financially healthy operation”.
“Unite’s position is that Petroineos has given a distorted picture of its finances,” he said.
“We don’t share the narrative that it is a loss-making site and where it has made losses, not necessarily net losses, it’s down to a number of factors.”
Thomson said the refinery made a £49m net profit between 2014 and 2022, excluding a net loss of £344m in 2020 which “distorts the overall picture”.
© Andrew Milligan/PA WireThe union has previously called for the UK and Scottish governments to transition Grangemouth to a production facility for sustainable aviation fuels (SAF) and bio-fuels.
Unite general secretary Sharon Graham said closing Grangemouth is “madness”.
“It is incumbent on the government to take decisive action,” Graham said.
“It must break away from the mistruths and distortions created by Petroineos which is putting its own interests ahead of those of the workers, the Scottish economy and the UK as a whole.
“A failure to act will totally undermine the confidence of workers across multiple sectors facing huge upheaval as we move to a green economy.”
The UK and Scottish governments are currently working on a joint plan to determine an “industrial future” for Grangemouth, known as Project Willow.
The £1.5 million study has identified a shortlist of three options, including low carbon hydrogen, clean eFuels and SAF.
Energy Voice has contacted the Scottish government and the Unite union for comment on Trading Stock’s offer to acquire Grangemouth.
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