BP to shut Forties pipeline as refinery strike looms

April 25, 2008
BP PLC will shut down its UK North Sea Forties pipeline by day's end Apr. 26 because of the planned strike at the Grangemouth refinery in Scotland.

Uchenna Izundu
International Editor

LONDON, Apr. 25 -- BP PLC will shut down its UK North Sea Forties pipeline by day's end Apr. 26 because of the planned strike at the Grangemouth refinery in Scotland.

BP relies upon the refinery for steam and power to manage the terminal at Kinneil, and its 2-day closure, starting Apr. 26-27, also means that 30% of gas production from the North Sea will also be shut in.

A company spokeswoman told OGJ it was awaiting clarity from refinery owner Ineos on the availability of power and steam to run its operations.

The Forties pipeline has an average throughput of 700,000 b/d, and more than 70 fields in the North Sea deliver crude oil through it.

Employees at the refinery have pledged to keep fundamental machinery running so that it can be reactivated easily, but Ineos, the owner of the refinery, has warned that the refinery could be closed for a month due to safety procedures involved in a restart. Ineos and the employees are locked in a pension dispute (OGJ Online, Apr. 25, 2008)

"Restoring power to Kinneil will determine how long it would take for Forties to become available," the BP spokeswoman said. "The pipeline could come on 24 hr after power is brought back."

Oil and Gas UK, the trade association for the UK offshore oil and gas industry, said: "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 restart safely," warning that lost production could cost the UK economy £50 million/d.

According to the UK Petroleum Industry Association, the representative body for operators' downstream operations, the 210,000 b/d Grangemouth refinery supplies about 95% of the fuel used in Scotland's central belt, including its capital, Edinburgh, and Glasgow.

The UK government has called on Ineos and the unions to resolve their dispute and ensure that the power station remains open.

Contact Uchenna Izundu at [email protected].