Lindsey Oil Refinery assets sold as refining restart ruled out

The assets of the Lindsey Oil Refinery in North Lincolnshire are to be acquired by Phillips 66, following the collapse of its former owner, Prax Group.

Administrators confirmed the sale this week, bringing an end to months of uncertainty over the future of one of the UK’s last remaining oil refineries. However, Phillips 66 has stated that it does not plan to restart refining at the site.

Instead, the company intends to integrate parts of the Lindsey site into its wider Humber operations, using the existing infrastructure for storage, terminals and logistics.

The refinery, which ceased operations in 2025 after Prax entered insolvency, had a processing capacity of around 113,000 barrels per day. Its closure marked another reduction in the UK’s domestic refining capability.

For the workforce, questions remain. Around 250 employees have continued working on site during the administration process, but long-term job security has not been confirmed. Current employment arrangements are understood to be in place only until the end of March.

Local leaders and trade unions have welcomed the sale as a step away from full closure but have raised concerns about the impact of a permanent end to refining on skilled jobs and the regional supply chain.

From an access and scaffolding perspective, the decision is likely to have knock-on effects. Major refinery maintenance, shutdowns and upgrades have historically driven long-term, high-value access packages. A shift toward storage and terminal use typically requires fewer large-scale scaffold structures and more intermittent maintenance access.

Phillips 66 said the transaction remains subject to regulatory approvals and final completion conditions.

Government officials said the outcome represented the best available option for creditors while preserving elements of the site’s strategic energy infrastructure.