UK: BP Shutting Key Oil, Gas Pipeline System Over Ineos Strike
April 26th, 2008Via: MarketWatch:
BP will begin shutting down its Forties Pipeline System, Saturday night due to a strike at Ineos’ 210,000-barrel-a-day Grangemouth refinery, a BP spokeswoman told Dow Jones Newswires Saturday.
“We will begin ramping down production through Forties overnight tonight,” a BP spokeswoman said.
“(The Forties Pipeline System) is to be completely shut down by 6 a.m. (0500 GMT) tomorrow,” she added.
The closure of the 700,000-barrel-a-day FPS will knock out 40% of the U.K.’s oil production and 25% of its gas supplies.
Workers at Grangemouth plan a 48-hour strike Sunday over changes to an employee pension scheme and have so far refused to maintain crucial power and steam supplies to BP’s Kinneil gas-processing plant, which relies on utilities from the refinery. The Kinneil plant is crucial in processing oil and gas output from the FPS.
Ineos PLC said earlier it planned to meet with union representatives at 0830 GMT for talks over the provision of utilities for Kinneil during the strike.
Talks between Ineos and the Unite union broke down without an agreement Wednesday and no new pension negotiations are scheduled.
The refinery is now fully shut down apart from limited power and steam supplies which remain online for safety reasons, Ineos said Friday.
More: Petrol Stations Run Dry Ahead of Grangemouth Refinery Strike
