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Pipeline set to shut over strike Major oil pipeline to close down
(about 9 hours later)
A key North Sea oil pipeline is expected to be shut down later on Saturday, because of a planned strike at the Grangemouth refinery. A pipeline which delivers 30% of the UK's daily oil output will be shut down overnight, it has been announced.
BP is to shut the Forties pipeline, which brings ashore a third of the UK's daily crude oil output, in response to the stoppage, set to start on Sunday. BP's Forties pipeline will be completely shut by 0600 BST on Sunday as, a strike by workers at the Grangemouth oil refinery begins.
Production at the refinery has already halted ahead of the strike. The pipeline, which brings in 700,000 barrels of oil a day from the North Sea, is powered from Grangemouth.
The authorities say there is enough fuel to go round, but some garages in Scotland are already running out. Meanwhile, on the eve of the strike, UK ministers again urged the public not to panic buy fuel.
Power provision Workers at Grangemouth, Scotland's only refinery, will walk out for 48 hours after talks broke down following a pensions dispute with operator Ineos.
The two-day stoppage by up to 1,200 workers is over changes to pensions. A BP spokeswoman said: "We've been advised by Ineos that they can continue to provide steam and power right up until the strike begins, which means that we expect that the pipeline will be shut down overnight.
Production at the refinery, which is Scotland's main fuel supplier, ceased on Friday afternoon ahead of the strike. If people stick to their normal pattern of purchasing fuel there shouldn't be any trouble John Hutton, business secretary
BP is now preparing to shut down the pipeline because the Kinneil terminal, its final destination, depends on electricity and steam from the refinery. "It will be completely shut down by 0600 on Sunday."
That power has so far still been provided, despite the production shutdown at Grangemouth. But Grangemouth's owner, Ineos, says the Unite union is refusing to maintain power and steam at the refinery when the strike begins. Meanwhile, UK Business Secretary John Hutton said people changing their buying habits were causing shortages.
BP said it expected that power would not be available from Saturday evening. He told the BBC's Today programme: "My message is that if people stick to their normal pattern of purchasing fuel there shouldn't be any trouble.
Without that power, 700,000 barrels of oil a day cannot be brought ashore and more than 70 platforms in the North Sea could be forced to stop production. "If there are temporary shortages, we can get those forecourts supplied as quickly as possible and that's what the fuel companies are determined to do."
'Wholly disproportionate' Production at Grangemouth ceased on Friday afternoon ahead of the strike of up to 1,200 workers.
Industry body Oil and Gas UK said closing the pipeline could cost an estimated £50m a day in lost production - with the Treasury taking half that hit. Drivers on whether a possible fuel shortage is likely to affect them
Chief executive Malcolm Webb issued a last-ditch plea for both sides to agree on measures which would keep the Kinneil plant running and minimise disruption to supplies from offshore. Meanwhile Unite, the union representing refinery workers, said talks with management about safety provision during the walkout were ongoing.
He said the potential effect of the Grangemouth strike on UK oil and gas production was "wholly disproportionate" to the scale of the dispute. Grangemouth powers the BP Kinneil processing plant, which receives about 725,000 barrels of crude oil and 80 million cubic metres of gas a day from the Forties pipeline, in the North Sea.
Fuel shortages have been experienced in some areas More than 70 platforms in the North Sea could be forced to stop production and industry body Oil and Gas UK said closing the pipeline could cost an estimated £50m a day in lost production - with the Treasury taking half that hit.
Drivers have been urged not to potentially exacerbate the situation by filling up their tanks unnecessarily.
There have already been reports of shortages, rationing and queues at some forecourts.
A Scottish Government spokesman said: "One of the most important messages to give is that people should not change their normal fuel buying patterns.
"We urge the people of Scotland to be sensible and only to buy the fuel that they need.
"We encourage people to make the journeys they require to and to use public transport."
Scotland's First Minister Alex Salmond earlier said BP was releasing stocks from Grangemouth diesel which should help ease supply problems.Scotland's First Minister Alex Salmond earlier said BP was releasing stocks from Grangemouth diesel which should help ease supply problems.
He added that substantial fuel cargoes, from ports including Rotterdam and Gothenburg, were "more than enough" to supply Scotland for next week.He added that substantial fuel cargoes, from ports including Rotterdam and Gothenburg, were "more than enough" to supply Scotland for next week.