BP set to close pipelines ahead of refinery strike

25 April 2008 10:39  [Source: ICIS news]

By Mark Watts

 

LONDON (ICIS news)--BP is making plans to shut down the North Sea Forties Pipeline System ahead of the strike at INEOS’ Grangemouth refinery which is almost certain to go ahead on Sunday, a spokesman from the oil major said on Friday.

 

INEOS was closing down its 200,000 bbl/day refinery and petrochemical complex ahead of the strike. The site feeds power and steam to BP’s gas separation plant at Kinneil, which is a hub for North Sea oil processing.

 

“It [The Forties pipeline] is still operating normally at the moment. We have still got power and steam from the refinery complex,” said BP spokesman Robert Wine.

 

“Obviously we are making plans for potentially shutting down some time later if that is required."

 

He said closing the pipeline - which supplies the UK with 700,000 bbl/day of liquids - would be a 12-24 hour process. The 70-odd fields that feed into it and the Kinneil processing plant would also have to close.

 

“It is one long chain. If one part of it is off then everything has to come down,” said Wine.

 

Industry body Oil & Gas UK estimated that the potential loss of production would cost the UK about £50m ($99m) – having a “wholly disproportionate” effect on the British economy.

 

“Moreover, if oil and gas production offshore were to be shut down, restarting cannot happen at the flick of a switch. It would take several days to re-start safely,” said Oil and Gas CEO Malcolm Webb.

 

It estimated the shutdown would have a knock-on effect to gas production equivalent to 30% of current UK demand.

 

Up to 1,200 workers plan to strike on April 27 and 28 over plans to end the final salary pension scheme for new workers.

 

Talks began through the conciliation service Acas on Tuesday broke down as the union Unite rejected an offer from the company to take the proposals off the table for three months of discussion, according to INEOS.

 

($1 = £0.51/€0.64)

By: Mark Watts
+44 20 8652 3214

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