Stewart Prentice, Head of Projects, at Essar said: We would like to thank National Highways for their support in this mammoth task, especially in facilitating closure of the M53 as our new furnace travels on its final leg to Stanlow. Auditors have warned about the financial health of the company behind the Stanlow oil refinery, despite its efforts to refinance loans and settle a debt . ** The Livorno refinery in northwest Italy will stop refining crude and suspend all related activities by the end of 2022, according to an announcement made to trade union representatives by its owner, Italian oil giant Eni, sources close to the plant told S&P Global Platts. [4] Consequently, it is the second largest in the United Kingdom after Fawley Refinery,[5] and produces a sixth of the UK's petrol needs. Linklaters and Ashurst both declined to comment. 1) Sign up to receive our monthly newsletter here and gain access to all articles and resources. Since early August, the company has increased its daily vehicle shifts from 52 to more than 70, and is aiming to increase deliveries to more than 80 by the end of October, it said. Hydrogen is a low or zero-emission substitute for fossil fuels. The jobs were placed at risk following a fire at the plant in August. In 2010, Royal Dutch Shell declared their desire to sell off some refineries in Europe to concentrate on emerging markets in Asia and the Middle East, which led to the possibility that Stanlow would be shut down indefinitely. "We thoroughly review any unplanned events and incorporate the learnings in our processes and procedures. [19], Stanlow's position as one of the largest and well-known refineries in the country, has led to numerous protests over a number of decades. Essar Oil UK reported today that sales of products1 from the Stanlow Refinery is expected to see a 63% year-on-year increase to 537kT in April 2021, in comparison to 329kT in April 2020. [8] Stanlow & Thornton railway station was opened in 1940 to give workers access to the site and the facility an extra mode of transport. We use your sign-up to provide content in the ways you've consented to and improve our understanding of you. VideoOn board the worlds last surviving turntable ferry, I didnt think make-up was made for black girls, Why there is serious money in kitchen fumes. A multimillion-pound carbon capture plant is to be built at an oil refinery in Cheshire. Is climate change killing Australian wine? The site occupies an important role in the UK's industrial manufacturing sector, directly employing more than 900 people, with an additional 800 on-site contractors and a further 5,000 people employed indirectly through the extended value chain, according to Essar Oil UK's website. Caption: The huge 'module' - part of a hydrogen-powered furnace - will be gliding down the M53 next week en route to Stanlow. The site, which is. Essar Oil has also reduced the amount it owed to HMRC, after it took part in a scheme that allow companies hit by Covid-19 to defer VAT repayments. EOUK had agreed to an accelerated schedule to make this payment. The blackout and issues with the startup impacted the effluent [waste] treatment system resulting in oil (hydrocarbon) spilling out into Thornton Brook, and a clean-up is still ongoing. Linklaters and Ashurst have quit as advisers to Essar Oil UK amid doubts about its future, Sky News learns. Although situated in North West England, the refinery serves much of England as it is linked to the UK oil pipeline network. 2023 BBC. LNG Processing. This includes: 4.4 billion litres of diesel every year - enough to drive a car doing 40 mpg 4,000 times around the equator every day 3 billion litres of petrol a year - enough to drive a car 20 million times around the world Crude oil is now received lower down river on the Mersey at the Tranmere Oil Terminal, operated by the Mersey Docks and Harbour Company from its Liverpool headquarters, and is transferred via a fifteen-mile (24km) pipeline to storage at Stanlow. The accounts were signed off before the invasion of Ukraine and do not make any reference to the possible impact of the war on the company or its ties to Russia. CR4 Thread Spherical Tanks and Liquefied Petroleum Gas. 9th April 2021. Essar Oil UK will build the 360m site at Stanlow refinery in Ellesmere Port to help reduce carbon . Scientists hope to demonstrate that it can be used instead of natural gas in a range of industrial settings, helping companies' transition to a low-carbon future. is achievable. The largest single module for the new furnace is 26.5 metres long, 18.5 metres tall, and 14.2 metres wide. Read about our approach to external linking. Essar Oil . 2) SUBSCRIBE to Global Energy Infrastructureand gain ACCESS to premium data for the energy industry.*. All rights reserved. Closure of lubricants. Essar Oil UK will build the 360m site at Stanlow refinery in Ellesmere Port to help reduce carbon emissions. In 1969 Shell-Mex & BP opened a 3 million joint venture bulk liquid distribution centre at Haydock, Lancashire. The terminal was supplied with light oils via a 41.6km pipeline from Stanlow refinery; heavy oils were delivered by two trains per day from Stanlow, and three daily trains from Heysham refinery. 100. Video Loading Member of the Brazilian Academy of Sciences and . Over 400 workers had overwhelmingly voted in favour of strike action in September, returning a 98.5 per cent yes vote. VideoOn board the worlds last surviving turntable ferry, I didnt think make-up was made for black girls, Why there is serious money in kitchen fumes. "The government continually monitors fuel supply across the country to ensure the public do not see any disruption. Essar Oil UK said Stanlow was operating as normal during the current fuel crisis, and supplying fuel to north-west petrol stations as normal, as panic buying hits forecourts across the country. Shell said the cost of fixing the damage was "not economically viable". 2023 BBC. M53 closure to help construct hydrogen-powered refinery. Caption: The module has already been moved across the River Mersey and up the Manchester Ship Canal to a landing site next to the M53 in readiness for next week's three-mile move by road to Stanlow. Essar said it was already making rapid progress against its broader decarbonisation targets with plans in place for the supply of hydrogen. Korea Inflation Slows in April, Backing Case for Rate Easing, The Inside Story of Buffetts Big Japan Bet, Over Glasses of Coke at Four Seasons, Corporate America Focuses on Cost Cuts and Layoffs Not Growth, Peru Inflation Falls Below 8%, Supporting Central Bank Ambitions, IMF Chief Says Rising Rates Exposed Banking Vulnerabilities, First Republic Sale Fills Bankers With Relief and Worry, NXP Rallies After Maker of Automotive Chips Gives Rosy Forecast, Apple-Masimo Trade Secrets Fight Ends With No Jury Verdict, IBM to Pause Hiring for Jobs That AI Could Do, Airbuss Newest A321 Jet Running Late as Delays Become New Norm, Biden, Marcos Reaffirm Ironclad Alliance as Tensions With China Grow, Republican Party Has a Future Beyond Trump, Youngkin Says, Morgan Stanley Plans 3,000 More Job Cuts as Dealmaking Slumps, FIFA Threatens to Pull Broadcast of Womens World Cup in Europe, MGM Resorts Tops Estimates, Cites Gains in Vegas and Macau, JPMorgan Jumped On First Republic's Exploding Manhole Cover, More Companies Head to Space, But No One Can Agree on the Rules Up There, Why Chinese Banks Arent Worried About Depositors Fleeing, The Boring Old Box Truck Gets the Tesla Treatment, E. Jean Carroll Testifies TrumpCritic Conway Encouraged Her Lawsuit, Trump Is Denied Mistrial Over Unfair Rulings in E. Jean Carroll Case, Brookfield Eyes Green Steel for Multibillion New Transition Fund, Bara DitchingPrivate Jet for Train Points toGreener Football, Germany Sets the New Standard for Cheap, National Mass Transit, Chinas Now Spurning Ugliest Buildings That Symbolized Its Meteoric Rise, Broke Chinese Gen Zs Turn Factory Town into Top Tourist Spot, Nigerias SEC Plans to Allow Asset-Backed Tokens But Not Crypto, Bitcoin Sags After its Longest Streak of Monthly Gains Since 2021, Bitcoin on Course for Longest Streak of Monthly Gains Since 2021. Crude oil was pumped ashore from tankers moored at deep-water pontoons to a holding station at Rhosgoch, from there it was pumped through two 36-inch diameter pipelines, 127km to Stanlow. Project Gallery Feedstock supply The refinery receives the crude supply through a 24km-long pipeline from the Tranmere oil terminal situated near Mersey Estuary. [13] However, Shell said that a number of refineries in their portfolio offered over-capacity and consequently Stanlow, their last British refinery, was put up for sale. The new furnace is part of Government-backed plans to include hydrogen in the race to reduce the countrys carbon emissions to net zero by 2050. Other issues that contributed to the poor rating included an accidental loss of containment of a process liquid due to a failure in operating techniques and a crash on-site with a waste line that reduced the effectiveness of their liquid waste treatment capability, fortunately, no one was injured. * India's Essar Energy ESSR.L agreed to buy Royal Dutch Shell's RDSa.L Stanlow refinery in northwest England for $350 million. * The plant was closed early in the second quarter 2011. . And the last leg of its 6,000 mile - and mostly watery journey will be along the strictly terra firma of the M53 motorway and A5117 local road. This has been a huge logistical challenge for everyone involved but well be closing the motorway at a time when traffic is at its lightest and a very good diversion will be in place.. "The government has put in place a far-reaching package of support to help businesses across the economy during the pandemic, including the furlough scheme, loans and VAT deferrals. Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk, Original reporting and incisive analysis, direct from the Guardian every morning, 2023 Guardian News & Media Limited or its affiliated companies. How to sign up for a MyWirral Email Update. The refinery is situated on the south bank of the Manchester Ship Canal, which is used to transport seaborne oil for refining and chemicals for Essar and Shell. [6] Stanlow is also a large producer for commodities such as jet fuel and diesel.[7]. The STS Transfers will enable larger ships . Most populous nation: Should India rejoice or panic? Gordon Beattie, our abnormal loads manager for the North West said: There are abnormal loads and there are abnormal loads and this one will completely fill the motorway. Virginia S. T. Ciminelli is a Professor of the Department of Metallurgical and Materials Engineering, Universidade Federal de Minas Gerais -UFMG, Brazil, and Director of the National Institute of Science and Technology on Mineral Resources, Water and Biodiversity, INCT-Acqua. Essar says it is in positive discussions with HMRC for a short extension to its time-to-pay (TTP) arrangement agreed earlier this year, having repaid 547m of the 770m originally deferred. The future around the long running Stanlow refinery in the Ellesmere Port in Northwest England has been thrust into uncertainty lately due to reports of financial instability from lower fuel demand. The UK's second biggest oil refinery is locked in talks with tax officials over a deferred tax bill amid reports that it could be on the brink of collapse. Private equity firm Bartons Family Capital is weighing a takeover of the U.K. Stanlow oil refinery, The Times reported on Sunday. "As part of Essars wider plans to build a green energy industrial cluster at the Stanlow, we have joined forces with Progressive Energy, developers of HyNet North West, the UKs leading industrial decarbonisation cluster, to produce low carbon hydrogen from 2025. "We are currently investigating Essar for breaches of their environmental permit and as such are unable to comment further. This page is not available in other languages. A multimillion-pound carbon capture plant is to be built at an oil refinery in Cheshire. [22], During the 2022 Russian invasion of Ukraine, dockworkers of the Unite union began to refuse to unload Russian oil from any ship. M53 closure to help construct hydrogen-powered refinery, More information on the project is available at Essar Oil UKs website. But the Sunday Times reported that the government was on alert in case Stanlow collapsed, and that it could go into insolvency if it could not raise more funds. The owner of the giant Stanlow oil refinery has been thrown a 400m lifeline by the taxman amid fears it could collapse, risking operations at the plant and creating fuel shortages. The manufacturing complex employs 800 people. A statement said Essar's "energy transition strategy" was based on the development of more environmentally friendly fuels. Essar Oil said it wants to be at the forefront of the UK's shift to low carbon energy, Essar Oil said they would complete their "energy transition strategy" by 2030, On board the worlds last surviving turntable ferry. The companys accounts do refer to its contract with Litasco, a Switzerland-based commodity trading company ultimately owned by the Kremlin-linked oil firm Lukoil. Buffett Will Beat theMarket asRecession Looms, Investors Say, Rivians Troubles Dont End at a 93% Wipeout, First Republics Jumbo Mortgages Brought On Banks Failure, Asia Stocks Set for Mixed Start as Treasuries Drop: Markets Wrap. [15] Following the bankruptcy of Petroplus which ran the Coryton Refinery in January 2012, Essar stated their belief that Stanlow, being a large refinery, would be able to compete with refineries in Asia and the Middle East. The Environment Agency - the body sponsored by the government to protect and enhance the environment - regulates the refinery and deemed it was "posing unacceptable risk to health and the environment" giving it an F rating following its compliance inspection in 2019. However, this station is now only served by three trains daily towards each of Ellesmere Port (westbound) and Helsby (eastbound), with these services scheduled to depart at times which would be inconvenient for the workers. Stanlow refinery, which supplies a sixth of Britain's petrol, in crisis talks with HMRC. We're paving the way for cutting carbon emissions at one of the country's biggest oil refineries. Barrel per day output: 272,000bbl/d (43,200m, This page was last edited on 9 June 2022, at 23:45. Signing up is free and it only takes a minute for you to get the biggest stories, sent straight to your inbox. Nevertheless, oil industry sources say they are legitimate concerns about the future of the company, which bought the Stanlow refinery at Ellesmere Port from Shell in 2011. However, the recovery from the pandemic has been slower than predicted, the company said, adding that it hopes for a resolution soon. Essar Oil UK expects positive cash flow in April 2021. Follow Bloomberg reporters as they uncover some of the biggest financial crimes of the modern era. Oilfield oil gas trasport pipeline refinery gifts awards. [18] In September 2021 it was reported that the facility is at the "brink of collapse". Global oil demand on course for record as Chinas economy rebounds, Exxon CEOs pay rose 52% to nearly 30m amid Ukraine war, figures show. LOG IN to view this article.Not Yet A Subscriber? Stanlow directly employs more than 900 people. The sale of Stanlow will leave the Anglo-Dutch company with no refiningassets at all in the UK, having closed the Shell Haven refinery near London in1999. Essar Oil UK (EOUK) used the governments pandemic VAT deferral scheme last year, which allowed businesses to delay tax repayments. Multiple reports have indicated that investment firm Apollo Global Management of New York has been in talks on some level for a potential 400 million refinancing agreement for the complex. Stanlow has been beset by problems in recent times, with an unplanned shutdown in 2019 triggering a significant oil spill. The BBC is not responsible for the content of external sites. But an auditors report warned of uncertainty over the companys discussions about new loans to help it weather the impact of Covid-19, which significantly reduced demand for fuel before a recent revival in conditions. [17] In April 2021 the company was reported to be heavily in debt after fossil fuel demand dropped during the COVID-19 pandemic. Live market coverage co-anchored from Hong Kong and New York. Documents filed at Companies House show that losses at Essar Oil (UK) deepened from $221m (168m) to $321m in 2021, a year in which government officials became concerned about the financial position of the company, which supplies 16% of UK road fuel from its refinery in Ellesmere Port, Cheshire.