Phillips 66 Buys Lindsey Refinery, Jobs Saved For Now

A US energy group has bought the Prax Lindsey refinery in north Lincolnshire, bringing an uneasy end to months of uncertainty for workers and the local community. The site, which collapsed into administration last summer, will be folded into Phillips 66’s nearby Humber refinery rather than re-opening as an independent fuel processor. Prax Lindsey was one of only five working UK refineries when it stopped operations in June. Phillips 66 — a Texas-headquartered company with refining, chemicals and renewable fuels businesses and some 14,600 staff worldwide — said the Lindsey plant is not viable as a standalone refinery in its current condition. The purchase price has not been revealed. The government’s official receiver, who ran the sale, said the deal offered the best return for creditors after a bidding process. Officials also acknowledged that no bids would have preserved all roles while restarting refining at Lindsey in the near term. Around 250 employees remain at the site, after 125 were laid off in October; those staff have contracts guaranteed only until the end of March. Ministers have described Phillips 66 as a credible operator that can expand nearby activity, increase domestic fuel supplies and deliver new construction jobs over the next five years. The company framed the acquisition as a way to protect local employment and attract investment. Unions warned the purchase should not become a pathway to mothballing the plant and converting it into storage, stressing Lindsey’s strategic value. When operating fully, the refinery has been credited with supplying a significant share of the UK’s diesel market and accounted for roughly 10% of national fuel output under Prax ownership. The refinery was bought by Winston Soosaipillai and his wife in 2021 as part of a wider group that included a North Sea oilfield and hundreds of filling stations. Alleged irregularities over the group’s debts triggered the collapse last year. Administrators are suing Soosaipillai — who is also known as Sanjeev Kumar — for breaches of director duties, and his current whereabouts are unknown. At the time of failure, company records showed just £203 in the bank after a major supplier called in about $53.6m (£39.8m) of debt. The sale is a clear sign of consolidation in a shrinking UK refining sector. For now, the deal averts more immediate job losses and keeps fuel supply links intact, but the long-term role of Lindsey as a refining site remains uncertain. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.theguardian.com | Read original article