Minister insists fuel supplies not under threat despite oil refinery closure
Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer.
Energy minister Michael Shanks (Peter Byrne/PA)
Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers.
'This has also allowed time for bidders to express an interest in the site.
'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.'
He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months.
'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.'
The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland.
Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021.
Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company.
He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months?
'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?'
Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.'
On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.'
Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'.
Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments.
'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency.
'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Evening Standard
27 minutes ago
- Evening Standard
Why are Cambodia and Thailand fighting? Border shuts between two countries
1907 - The border disputes date back to a map made in 1907, when Cambodia was a French colony. The map served as the foundation for Cambodia's claims to specific areas of the border, but Thailand disputed it due to its lack of clarity, which resulted in differing interpretations. 1962 - Cambodia was granted authority over the ancient temple by the International Court of Justice in 1962. 2008-11 - Military fighting goes on continuously over a jungle border area. Each side blamed the other for starting and prolonging the fighting. A ceasefire was declared in 2011 after heavy seven days of fighting, which killed at least 15 people and displaced tens of thousands of civilians. May 28, 2025 - The border dispute reignites and a Cambodian soldier is killed. June 15, 2025 - Thailand's Prime Minister Paetongtarn Shinawatra has a phone call with Hun Sen, the de facto leader of Cambodia. The purpose of the call was to ease tensions between the two nations. July 23, 2025 - In a land mine explosion, a Thai soldier lost his right leg. Thailand said that it would recall its ambassador to Cambodia and dismiss Cambodia's ambassador, thereby downgrading diplomatic ties with Cambodia.
Leader Live
27 minutes ago
- Leader Live
Starmer hails ‘historic day' as Modi visits for signing of UK-India trade deal
At the Prime Minister's country residence Chequers, Sir Keir said the deal marked a 'step change' in relations. Mr Modi said they were 'writing a new chapter' in the UK and India's shared history. The deal is set to be worth £6 billion in investment from Indian and UK companies into the British economy, and is expected to have a £4.8 billion impact on the UK's gross domestic product (GDP). The two leaders have also agreed to increase efforts to tackle illegal migration and organised crime. Sir Keir said: 'I'm really pleased and privileged to welcome you here today on what I consider to be a historic day for both of our countries, and the delivery of the commitment that we made to each other.' Mr Modi, speaking via a translator, described the UK and India as 'natural partners'. Business Secretary Jonathan Reynolds and his Indian counterpart Piyush Goyal then formally signed the trade agreement in the great hall of Chequers. At a joint press conference in the hall, Sir Keir was invited by Mr Modi to visit India in the near future. The Indian prime minister also paid tribute to the British victims of the June plane crash outside of Ahmedabad airport, and described Britons of Indian origin as a 'living bridge' between the two countries. The ongoing England-India Test cricket clash is a 'great metaphor for our partnership', Mr Modi said, adding: 'There may be a swing and a miss at times, but we always play with a straight bat.' A brief translation error resulted in Sir Keir asking if he needed to repeat a section of his speech. But Mr Modi indicated he understood, with Sir Keir replying: 'I think we understand each other well.' As their statements drew to a close and the two leaders began to leave the room, Mr Modi jokingly asked if Sir Keir would play the grand piano next to them in the room. Sir Keir, who is known to have played several musical instruments including the piano, laughed at the suggestion. The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain. It will see tariffs on an array of British goods reduced from an average of 15% to 3%, with the aim of boosting the £11 billion of imports into the south Asian nation. Whisky tariffs will be slashed in half and will fall further over successive years, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties. The deal is expected to result in 2,200 jobs across the country and £6 billion investment by British and Indian businesses. The UK and India are also bolstering co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence. But the deal has not given the UK as much access as it would have liked to India's financial and legal services industries. The agreement promises some benefits for the UK's financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector in discussions with her Indian counterpart. But more wide-ranging access was not agreed, and talks continue on a bilateral investment treaty aimed at protecting British investments in India and vice versa. The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly. Negotiations on the deal began when Boris Johnson was prime minister in 2022, and were concluded in May this year. Shadow business secretary Andrew Griffith said it had only been made possible 'because of Brexit delivered by the Conservatives'. The Confederation of British Industry (CBI) has said that the signing 'sends a powerful signal that the UK is open for business and remains resolute in its commitment to free and fair trade'. Chief executive Rain Newton-Smith added: 'A trade agreement with India – one of the world's fastest-growing economies – is a springboard for long-term partnership and prosperity. UK firms can take advantage of this new platform to scale, diversify and compete on the global stage.'
Metro
27 minutes ago
- Metro
Map shows Thailand-Cambodia border where UK tourists warned to 'take extra care'
Fighting is again raging along the long-disputed border region between Thailand and Cambodia, raising concerns for British tourists. As many as 12 people, including an eight-year-old boy, have been killed in the armed clashes – centred in the Thai Surin province and the Cambodian Oddar Meanchey province – with both sides blaming each other for firing the first shot. An F-16 jet has been deployed by Thailand, firing into Cambodia multiple times and destroying a military target. Meanwhile, artillery and rockets have been fired from the Cambodian side. This conflict has been simmering for months – with diplomatic relations deteriorating – and in fact the dispute over the region goes back almost a century. Clashes have again erupted between Thailand and Cambodia over a long-running border dispute. The Foreign Office has issued further travel advice to British citizens in Thailand. A dozen people have been killed, including a boy, aged eight, and a teenager, aged 15, in Thailand. Both sides have accused the other of firing the first shot. No one knows if it will boil over and into a full-blown war – but Cambodia has confirmed that it will start military conscription as early as next year. With scarce information available about the situation, Metro has prepared an explainer for those on the ground and those monitoring it from far away. At the heart of the conflict are differing interpretations of the colonial-era maps drawn more than a century ago by the French – who once colonised Cambodia – and by Siam (modern-day Thailand). Cambodia has been using the 1907 map as a reference to claim territory, but Thailand has argued it was never officially accepted. This ambiguity led to a ruling by the International Court of Justice (ICJ) in 1962, which awarded the land and the 11th-century temple Preah Vihear to Cambodia. Border disputes have long caused tensions between the two neighbours – but nationalist movements have further inflamed them. Relations hit rock-bottom in May after a Cambodian soldier was killed in an armed confrontation in a disputed border area. On Thursday, Cambodia downgraded diplomatic relations with Thailand to their lowest level, expelling the Thai ambassador and recalling Cambodian staff from its embassy in Bangkok. The day before, its neighbour also withdrew its ambassador and expelled the top Cambodian diplomat in protest after five Thai soldiers who were wounded in a land mine blast, one of whom lost part of a leg. Thailand has since shut all its border points with its neighbour. Fighting first broke out near the Khmer Hindu temple Ta Muen Thom, along the border of Thailand's Surin province and Cambodia's Oddar Meanchey province. The Thai military said Cambodian soldiers had opened fire near the temple, and deployed a surveillance drone. Additional forces – armed with heavy weapons, including BM-21 rocket launchers and artillery – were deployed shortly after. Both sides claimed they were acting in self-defence and blamed the other for the skirmish. So far, 11 Thai civilians and one soldier have been killed, including a boy, aged eight, and a teenager, aged 15. Most people were killed in a rocket attack near a supermarket and a gas station in Sisaket province. Another 14 people have also been injured. It remains unclear if there are any fatalities on the Cambodian side as the government has remained tight-lipped about its losses. Both nations attract large numbers of British tourists every year, but it is unclear how many citizens are in each country currently. The Foreign Office has urged travellers from the UK to 'take extra care and stay alert in border areas', saying: 'Take extra care and stay alert in border areas and follow the instructions of local authorities, especially at tourist destinations such as the Preah Vihear temple, the Ta Kwai temple and the Ta Muen Thom temple. More Trending 'There are also unexploded landmines in the border area. Stay on marked paths, especially around Ta Krabey.' The FCDO confirmed that land borders and crossings between Cambodia and Thailand are temporarily suspended. Separately, the UK advises against all but essential travel to parts of the south, near the Thailand-Malaysia border, including the Pattani Province, Yala Province, Narathiwat Province and southern Songkhla Province – south of the A43 road between Hat Yai and Sakom, and south of the train line which runs between Hat Yai and Padang Besar. FCDO also advises against all but essential travel on the Hat Yai to Padang Besar train line that runs through these provinces. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Is it safe to travel to Tunisia? Latest advice as UK Foreign Office issues tourist warning MORE: Nine bar staff arrested for beating on British tourist over £460 bill MORE: Woman 'filmed herself having sex with Buddhist monks and blackmailed them for £9,000,000'
