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Refinery strike threatens Scottish fuel supply-Ineos

Sat Apr 19, 2008 8:33pm IST
 
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By John Joseph

LONDON, April 19 (Reuters) - Scottish oil refinery Grangemouth has started to shut down ahead of a two-day strike that threatens to create major fuel shortages in Scotland and the north of England for up to a month, management said.

Workers are due to launch the two-day strike on April 27, forcing the Ineos refinery to close with a significant impact on the North Sea Forties pipeline system that terminates there.

Ineos said it started to shut down the 200,000 barrels per day former BP (BP.L: Quote, Profile, Research) refinery late on Friday to make it safe ahead of the planned industrial action.

"The union is well aware that a 48-hour strike will cause fuel chaos in Scotland and the North of England for weeks on end," Ineos Olefins chief executive officer Tom Crotty said in a statement.

"This is a huge oil refinery and they know you can't just turn it on and off like a tap. A month is our best guess but safety considerations will be at the forefront of everything we do."

Workers are striking over changes to the final salary pension scheme.

Grangemouth's general works manager Gordon Grant said it would not be possible to meet all the fuel needs of Scotland and the north of England while the refinery was shut.

"200,000 barrels a day is a lot of fuel," Grant told Reuters. "It's generally accepted that it's not feasible to supply Scottish fuel needs by tanker."  Continued...

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