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:

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.

Libreville is intensifying the promotion of deep-water blocks, still seventy-two % unexplored, to offset the two hundred thousand barrels-per-day production drop recorded last year, according to GlobalData.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.
Swiss commodities trader Glencore has initiated discussions with the British government regarding its supply contract with the Lindsey refinery, placed under insolvency this week, threatening hundreds of jobs and the UK's energy security.
Facing an under-equipped downstream sector, Mauritania partners with Sonatrach to create a joint venture aiming to structure petroleum products distribution and reduce import dependency, without yet disclosing specific investments.
Dalinar Energy, a subsidiary of Gold Reserve, receives official recommendation from a US court to acquire PDV Holdings, the parent company of refiner Citgo Petroleum, with a $7.38bn bid, despite a higher competing offer from Vitol.
Oil companies may reduce their exploration and production budgets in 2025, driven by geopolitical tensions and financial caution, according to a new report by U.S. banking group JP Morgan.
Commercial oil inventories in the United States rose unexpectedly last week, mainly driven by a sharp decline in exports and a significant increase in imports, according to the US Energy Information Administration.
TotalEnergies acquires a 25% stake in Block 53 offshore Suriname, joining APA and Petronas after an agreement with Moeve, thereby consolidating its expansion strategy in the region.
British company Prax Group has filed for insolvency, putting hundreds of jobs at its Lindsey oil site at risk, according to Sky News.
Orlen announces the definitive halt of its Russian oil purchases for the Czech Republic, marking the end of deliveries by Rosneft following the contract expiry, amid evolving logistics and diversification of regional supply sources.
Equinor and Shell launch Adura, a new joint venture consolidating their main offshore assets in the United Kingdom, aiming to secure energy supply with an expected production of over 140,000 barrels of oil equivalent per day.
Equinor announces a new oil discovery estimated at between 9 and 15 mn barrels at the Johan Castberg field in the Barents Sea, strengthening the reserve potential in Norway's northern region.
Sierra Leone relaunches an ambitious offshore exploration campaign, using a 3D seismic survey to evaluate up to 60 potential oil blocks before opening a new licensing round as early as next October.
Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
Shell group publicly clarifies it is neither considering discussions nor approaches for a potential takeover of its British rival BP, putting an end to recent media speculation about a possible merger between the two oil giants.
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.