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Lifeline tankers stop country grinding to a halt



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Published Date: 27 April 2008
SCOTLAND has been kept moving this weekend by a comprehensive plan to beat the fuel strike by refinery workers at Grangemouth.
But whether supplies will hold up over the coming days was hanging in the balance last night.

Tanker-loads of refined petrol and diesel bought at premium prices on the international market have been shipped into the Firth of Forth and then distributed to key storage sites to keep both the emergency services and the public supplied with fuel.

Scotland on Sunday can reveal that Ineos, the company which owns the Grangemouth refinery, has been paying around $1,100 a tonne for refined crude oil, about 20% more than normal.

It has also hired a fleet of tankers to bring the fuel to its Hound Point jetties on the south bank of the Forth, thereby circumventing the need to use the nearby refinery.

Yesterday, the last of the ships laden with fuel from Rotterdam docked at Hound Point just after lunchtime to deliver thousands more tonnes to Scotland's thirsty forecourts.

An industry insider who has been closely involved with negotiations to bring the dispute to a halt said Ineos was determined to beat the industrial action.

He said: "They are spending literally millions of dollars a day buying fuel from around the world to bring into the UK to keep the country running.

"There is a huge thirst for fuel in this country and the company will do everything in its power to ensure that that thirst is quenched."

Distribution of that fuel has been co-ordinated by an emergency committee comprising senior police officers, civil servants and industry representatives. They have drafted in about 80 extra tanker drivers from fleets across the UK to ensure that the fuel gets from the Firth of Forth to locations where it is most needed.

At times of national crisis, around 80 petrol stations across Scotland are designated in the National Emergency Fuel Plan (NEFP) to hold stocks.

These sites, such as Harthill Service Station on the M8, are chosen because of the size of their massive fuel reservoirs, the capacity of which far exceeds those found on normal-sized petrol forecourts.

As part of the Government's pre-planning for just such a fuel crisis, a list of professions has been drawn up which would, in times of rationing, qualify for petrol. At the top of the list are the police and armed forces, who would be expected to keep order and fuel supplies moving if the strikes were to escalate. It then moves down through the health professions, food manufacturing and farming to essential operations at nuclear sites.

Key transport workers and environmental health officials are also included.

In order to buy fuel, an individual has to show photographic identification, such as a warrant card, and also present a blue, laminated, A4-sized piece of plastic that confirms who they work for, the registration number and type of vehicle which qualifies for fuel.

What is left over once the designated tanks have been filled can be distributed to petrol stations which serve the general public.

When real shortages occur, as in the last fuel crisis in 2000 when oil refineries were blockaded by road hauliers in protest against price rises, the designated petrol stations are closed to the public. That has not happened yet as the fuel-supply plan has worked so far.

Even so, there are inherent flaws. The unloading of the extra fuel at the Hound Point jetty is handled by workers who belong to the same union, Unite, which has called the strike at Grangemouth. So too do many of the river boat pilots whose assistance is legally required to allow the giant tankers to navigate the Forth.

A slight escalation of the dispute could lead to the union pulling out its members in these key categories as well. Although there is an agreement between Ineos and the union to allow the offloading of fuel supplies for emergency workers, it does not extend to supplies for general use.

This could lead to severe fuel shortages if the strikes were to be renewed for longer periods.

The union source said: "The river pilot boats are an absolute necessity to ensure the tankers are able to operate. There is no use having a half-a-dozen oil tankers if there is no way of getting them up the Firth of Forth."

Another weak point is the supply of tanker drivers. Although there are around 3,000 of the specialist drivers in the UK, there may not be enough to cope with more additional seaborne tanker loads.

Yesterday, some petrol retailers in Scotland were starting to run dry because there were not enough drivers to take the imported fuel supplies from storage depots to garages.

The other flaw in the strategy is the behaviour of members of the public themselves.

Although panic-buying subsided yesterday throughout Scotland, earlier mass buying did cause shortages in some areas. This is why ministers, First Minister Alex Salmond at the forefront, have been at pains to get the 'don't panic' message across to the public.

If the plan holds, the Grangemouth refinery should reopen on Tuesday morning and be back to production later in the week. The 70 fields connected to Grangemouth should also be back pumping crude oil within seven days.

Around 700,000 barrels of oil – 35% of UK oil demand – pour through the pipeline from 70 North Sea rigs every day, making it one of the biggest suppliers to the market.

The closure today and tomorrow will have an economic impact of around £50m a day in lost production – half of which goes to the Treasury in duty.

But BP maintained that the extra supplies being brought in means the closure would have little impact on supplies to forecourt pumps, as 80% of the crude that comes in through the Forties pipeline goes straight to the export market.

The rest goes to the Grangemouth refinery, to be made into petroleum products that supply around 90% of the fuel needs of Scotland and some of northern England.

It is that 20% gap that the tanker imports are designed to fill.

The other eight refineries in England are also importing extra supplies to keep Britain's petrol and diesel pumps topped up.

BP said it could not say when the pipeline would be fully operational again after the resumption of power.

"There are 70 rigs that will have to gear up for production again, so it will take a few days," a spokesman said.

Further strike action is far from ruled out, although Unite has by law to give Ineos seven days' notice of further strike action. But, in theory, as officials have a mandate from their members to call further action, they could give notice shortly after the Grangemouth refinery starts gearing up for production again on Tuesday morning.

The full article contains 1153 words and appears in Scotland On Sunday newspaper.
Page 1 of 1

 
1

Angus Ogg,

26/04/2008 22:49:52

The big problem with rationing, is that muggins, your actual worker at the tail end of the fuel queue is the poor creature who has to work for a living.

If he or she cannot get to work, guess what?

No work = No taxes to pay the politicians and emergency workers.

You would think Old Prudence in McAvities undergound bunker at Number 10 Downing Street would understand that simple piece of economics and actually do something about this mess?

That is other than kicking tables over, hurling mobile phones at walls, and generally going "mental" at his work colleagues.
2

Padraig,

27/04/2008 00:47:41
Greeat, lets just starve these daft strikers out - a hard lesson on how not to be duped by politically motivated union representatives, relying on McAvity and his discredited government dithering until it is all over.

I don't know which I prefer - for these Commies to bring down this useless government and force a General Election or for this politicised union to be broken by the strike and learn a hard lesson. And about what? Changes to the existing pension terms have already been mitigated.

Tough on the workers, though - but do they care about the rest of us? Not for a moment!
3

Fifi la Bonbon,

27/04/2008 02:21:18
"SCOTLAND has been kept moving this weekend by a comprehensive plan to beat the fuel strike by refinery workers at Grangemouth."

No, there is a plan to beat the lock out by the billionaire oil bosses intent of robbing workers of their pension scheme, and holding the nation to ransom to try to crush the independent spirit of Scottish working people.
4

Mike555,

27/04/2008 08:51:03
Something not right with this story since tankers can only load crude oil at Hound Point and to the best of my knowledge, do not pump refined oil products the other way.
5

quite reader,

27/04/2008 09:12:06
Petrol & Diesel is not the only thing that is rationed, our house is not on main gas and we have to depend on kerosene for heating as does a lot of remote dwellings. we are empty and the supplier has had no supply for over a week with no word of when he will get supplies. We are just lucky the weather is getting better and can suvive being a little younger than possibly OAP's who depend on similar fuel to keep warm.
6

GBscot,

Idaho Falls 27/04/2008 14:11:56
The really first test for the SNP government and they FAIL to keep supplies going. Perhaps our 1st Minister
should make a personal plea to the strikers and find out just how popular he is.?
7

Florence,

Edinburgh 27/04/2008 18:21:23
No. 10 GBscot: Your comment is risible.
8

Willie,

27/04/2008 20:44:15
It may be a comprehensive plan to beat the fuel strike but you can't say this article was comprehensively researched by three of SOS's finest reporters!!
Considering the amount of column inches that the Scotsman Newspapers have devoted to the Hound Point Facility since 1978 you would think they would know it can't unload petrol products, and is an Export facility.
Of course promoting panic is much more newsworthy than normal trading, and guilding the lily to promote proprietors big picture acceptable irrespective of the truth.
9

GG73,

EDINBURGH 27/04/2008 21:47:16
Are LRT running as normal tomorrow?
10

theleftwing,

27/04/2008 22:54:20
could the editor of the sos please move this article to the fiction section please.
11

Buckfastleigh,

petrol forecourt Buckfast 27/04/2008 23:14:47
Yes they are talking about it here too. But what seems to be understood at this distance from Derangemouth is that a large multinational company is bullying its workers into a worse pension deal, to keep profits flowing.

Will the managers back down? Not on your Nelly! They will exploit us all as usual and I am sure we need to counter their cynical tactics by some other way. Why not fill your tanks with Buckfast Tonic Wine?
12

voltaire's janny,

28/04/2008 08:42:30
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