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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 31 July 2025
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Displaying 1342 contributions

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Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

There was also some discussion earlier this morning about energy security and the impacts of international markets. In relation to the import hub plan, the previous panel made a point about diesel coming in at Finnart and going to Grangemouth through the existing pipeline, but I asked a question about the carbon footprint of importing that diesel. You talked about the international market and about refineries in China and the middle east being much more modern and competitive, but the carbon footprint of importing from China, the middle east or wherever it may be is huge. It may well be that our carbon footprint will reduce if there is no refinery at Grangemouth, but the carbon footprint of importing could be greater.

I recognise that this is the UK Government’s responsibility, but have you looked at whether we could utilise the Forties pipeline to take crude from the North Sea basin and continue to refine at the likes of Grangemouth? From an energy security point of view in this weird and wonderful world that we live in, that would probably be the best way. It would also cut down our carbon footprint compared with importing diesel, petrol and kerosene—and, in the future, the likes of SAF.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Sure.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

I am aware of the high sulphur content and the fact that crude from the North Sea basin goes elsewhere. There was talk of other refineries in north-west Europe earlier. However, maybe there could be investment in a new modernised refinery—if the UK Government was willing to do that—to take account of the high sulphur content of crude from the North Sea basin in order to get to the right end products, such as diesel, petrol and kerosene. I am no expert on this, but I have been told on many occasions by folks who are experts that refineries have a peak point in dealing with certain crudes. Maybe we could do that at Grangemouth as we move on.

Is it worth having that discussion with the UK Government, which has the primary responsibility, in order to ensure that we continue to have energy security and to stop the importing and reduce the carbon footprint?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Yes, there is quite a lot.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

We have got a very short period of time. Summarise both very quickly, because I have more questions, as you would imagine.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Why not manufacture SAF here?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

Just give us a brief summary. What bothers me about how you are doing things at the moment is that there may be a future impact on confidence in moving some of these projects forward.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

I think that we could go on for quite some time about the competitive international market. From an energy security point of view, there have to be changes to that market. To reduce our overall carbon footprint, there have to be changes to that market, as well.

What I am driving at is that we should, from an energy security point of view, be utilising the North Sea basin to the max to save on importing crude and product. Would not it be better to utilise the pipeline from Forties to Kinneil more? Would it be beneficial for Petroineos if the UK Government, in particular, looked at what could be done to help with energy security by investing in it? I am well aware of the 2013 rescue plan, which led to a £9 million grant from the Scottish Government and £125 million of loan security from the UK Government. Is it time to look at security, and loan security, in relation to future energy security and reducing the carbon footprint?

10:15  

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Kevin Stewart

The previous panel, particularly Mr Pritchard, was keen to stress that the announcement will have no impact on the plans for the Scottish cluster and the Acorn project. Is that your understanding? How will the Scottish Government continue to scrutinise the matter to ensure that that is the case?

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Kevin Stewart

We have just heard a little about the strategic commercial assets division, the existence of which I think we all welcome. Rightly, the cabinet secretary has pointed out that this is about looking at strategy rather than at day-to-day operations. However, some of the answers to our questions in our earlier session about strategy, not just day-to-day operations, were a little vague, shall we say.

I asked about the reliance on income from military operations and, given that such things can change rapidly, the strategy for ensuring that that revenue stream continues. The response was pretty vague. I asked about the ambitions to create a spaceport in the area. The response was pretty vague. A question was asked about the opportunity in moving to sustainable aviation fuel. The response was pretty vague.

What is the level of scrutiny from the strategic commercial assets division when it comes to teasing out the prospects for some of those things? I am not asking about the day-to-day operations but about strategic planning.

11:15