UK’s Lindsey refinery faces shutdown within three weeks, according to Wood Mackenzie

Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The British Lindsey refinery, currently undergoing insolvency proceedings, has only 1.8 million barrels of crude oil in storage, an amount sufficient to sustain its operations for roughly three weeks. This alarming assessment comes from a recent analysis by the energy consultancy Wood Mackenzie. Due to current economic pressures, operations at the facility are already impacted by reduced crude oil processing, directly resulting from the recent shutdown of its Fluid Catalytic Cracker (FCC) unit. According to Emma Howsham, a senior analyst at Wood Mackenzie, the refinery is currently running in a less profitable mode known as hydroskimming, significantly limiting its short-term profitability.

A direct impact linked to the FCC unit shutdown

The FCC unit, responsible for converting heavy crude oil into lighter petroleum products like gasoline, is the operational and economic heart of the Lindsey refinery. Its recent shutdown forced the facility into an alternative, less efficient processing mode. The so-called hydroskimming configuration involves basic crude processing without achieving the high profit margins typically generated by refined gasoline production. Consequently, Wood Mackenzie notes that the refinery has already significantly reduced its processing volumes, worsening an already precarious financial situation. The exact timeline for restarting the FCC unit remains uncertain, and if it does not resume operations soon, a complete shutdown of the refinery could occur within days.

An additional threat to the UK market

The potential shutdown of the Lindsey refinery represents a major issue for the UK energy market, already facing significant pressure due to geopolitical instability and crude supply constraints. Lindsey, one of the country’s main refineries, directly supplies the British domestic market with fuels such as gasoline and diesel. A prolonged or permanent halt in operations could significantly disrupt the supply chain and exacerbate existing tensions in the fuel market. Economic stakeholders and British authorities are closely monitoring the situation, concerned about immediate economic impacts and potential logistical disruptions nationwide.

The coming days are critical

Given this worrying scenario, the coming days will be critical for the future of the Lindsey refinery. Prompt resumption of operations at the FCC unit is now imperative to prevent further escalation of the local and national economic crisis tied to this strategic facility. The entire UK petroleum sector is closely awaiting upcoming announcements, aware that developments in this situation could have lasting consequences. Within this context, Wood Mackenzie’s report serves as a serious warning, emphasizing the need for swift and coordinated action by the relevant economic players.

Lukoil has started divesting its foreign assets following new US oil sanctions, a move that could reshape its overseas presence and impact supply in key European markets.
Kazakhstan is reviewing Lukoil's stakes in major oil projects after the Russian group announced plans to divest its international assets following new US sanctions.
The Mexican state-owned company reduced its crude extraction by 6.7% while boosting its refining activity by 4.8%, and narrowed its financial losses compared to the previous year.
The new US licence granted to Chevron significantly alters financial flows between Venezuela and the United States, affecting the local currency, oil revenues and the country's economic balance.
Three Crown Petroleum reports a steady initial flow rate of 752 barrels of oil equivalent per day from its Irvine 1NH well in the Powder River Basin, marking a key step in its horizontal drilling programme in the Niobrara.
Cenovus Energy adjusts its MEG Energy acquisition offer to $30 per share and signs a voting support agreement with Strathcona Resources, while selling assets worth up to CAD150mn.
Iraq is negotiating a potential revision of its OPEC production limit while maintaining exports at around 3.6 million barrels per day despite significantly higher capacity.
Le Premier ministre hongrois se rendra à Washington pour discuter avec Donald Trump des sanctions américaines contre le pétrole russe, dans un contexte de guerre en Ukraine et de dépendance persistante de la Hongrie aux hydrocarbures russes.
Nigerian tycoon Aliko Dangote plans to expand his refinery’s capacity to 1.4 million barrels per day, reshaping regional energy dynamics through an unmatched private-sector project in Africa.
COOEC has signed a $4bn EPC contract with QatarEnergy to develop the offshore Bul Hanine oil field, marking the largest order ever secured by a Chinese company in the Gulf.
The group terminates commitments for the Odin and Hild rigs in Mexico, initially scheduled through November 2025 and March 2026, due to sanctions affecting an involved counterparty, while reaffirming compliance with applicable international frameworks.
Shell has filed an appeal against the cancellation of its environmental authorisation for Block 5/6/7 off the South African coast, aiming to continue exploration in a geologically strategic offshore zone.
The Greek government has selected a consortium led by Chevron to explore hydrocarbons in four maritime zones in the Ionian Sea and south of Crete, with geophysical surveys scheduled to begin in 2026.
Algerian company Sonatrach has resumed exploration activities in Libya's Ghadames Basin, halted since 2014, as part of a strategic revival of the country's oil sector.
The Indian refiner segments campaigns, strengthens documentary traceability and adjusts contracts to secure certified shipments to the European Union, while redirecting ineligible volumes to Africa and the Americas based on market conditions.
US authorities have authorised a unit at Talen Energy’s Wagner plant in Maryland to operate beyond regulatory limits until the end of 2025 to strengthen grid reliability.
Gran Tierra Energy has signed a crude oil sale agreement with a $200mn prepayment and amended its Colombian credit facility to improve financial flexibility.
Operations at BP’s 440,000 barrel-per-day Whiting refinery have resumed following a temporary shutdown caused by a power outage and a minor fire incident.
The European Union targets a trading subsidiary and a refinery linked to China National Petroleum Corporation, tightening access to financial and insurance services without disrupting pipeline deliveries, with reallocations expected in settlements, insurance, and logistics. —
Viktor Orban says he is working to bypass recent US sanctions targeting Rosneft and Lukoil, underscoring Hungary’s continued reliance on Russian hydrocarbons.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.