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Major oil pipeline to close down Industry plea to prevent strike
(about 4 hours later)
A pipeline which delivers 30% of the UK's daily oil output will be shut down overnight, it has been announced. The oil and gas industry has urged the government to intervene in the industrial dispute at the Grangemouth, Scotland's only refinery.
BP's Forties pipeline will be completely shut by 0600 BST on Sunday as a strike by workers at the Grangemouth oil refinery begins. Oil and Gas UK said it was time for ministers to act to avoid further disruption to production.
The pipeline, which brings in 700,000 barrels of oil a day from the North Sea, is powered from Grangemouth. About 1,200 Grangemouth workers will walk out at 0600 BST on Sunday in a row over pensions.
Meanwhile, on the eve of the strike, UK ministers again urged the public not to panic buy fuel. Oil giant BP has been force to will turn off its Forties pipeline, which delivers 30% of the UK's daily oil.
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 pipeline brings in 700,000 barrels of oil and 80 million cubic metres of gas a day from the North Sea to BP's Kinneil plant, which is powered from the Grangemouth site.
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. Oil and Gas UK chief executive Malcolm Webb said: "This is now affecting some 80 companies and their operations which are in no way connected to or involved in this dispute.
If people stick to their normal pattern of purchasing fuel there shouldn't be any trouble John Hutton, business secretary We are clearly aware of increased activity at the pumps - but there remains no need for people to change their normal pattern of fuel buying Jim MatherScottish tourism minister
"It will be completely shut down by 0600 on Sunday." "It is now time for the UK Government at the highest level to step in and take all the necessary actions to ensure that the country is not held to ransom in this manner."
Meanwhile, UK Business Secretary John Hutton said people changing their buying habits were causing shortages. Oil and Gas UK said the pipeline closure would cost the UK economy £50m a day in lost production - with the Treasury taking half that hit.
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. The impending strike was also having an impact on the availability of petrol and diesel in Scotland.
"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." There were no shortages, industry bosses said, but drivers filling up their tanks unnecessarily caused some petrol station pumps to run dry.
Production at Grangemouth ceased on Friday afternoon ahead of the strike of up to 1,200 workers. Production ceased
Drivers on whether a possible fuel shortage is likely to affect them The Scottish Government urged members of the public to consider their car use over the weekend however.
Meanwhile Unite, the union representing refinery workers, said talks with management about safety provision during the walkout were ongoing. Tourism Minister Jim Mather encouraged people to go for a walk rather than a Sunday drive and use public transport.
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. He said: "The Scottish Government's message is clear - enjoy the weekend, enjoy our world class scenery, but in the current situation, behave responsibly, reducing avoidable journeys, and using public transport when possible.
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. "We are clearly aware of increased activity at the pumps - but there remains no need for people to change their normal pattern of fuel buying."
Scotland's First Minister Alex Salmond earlier said BP was releasing stocks from Grangemouth diesel which should help ease supply problems. Production at Grangemouth ceased on Friday, ahead of the 48-hour strike action.
He added that substantial fuel cargoes, from ports including Rotterdam and Gothenburg, were "more than enough" to supply Scotland for next week. The Forties line will be completely shut down by 0600 BST on Sunday.