The new owner of the Lindsey Oil Refinery has confirmed it has no plans to restart fuel production at the site and cannot guarantee how many of the remaining 250 jobs will be saved.
Phillips 66, which already operates the nearby Humber Refinery in North Lincolnshire, announced the acquisition of the Prax Lindsey refinery assets on Monday, 5 January 2026. The deal concludes a sale process initiated after the Lindsey site was wound down in June 2025, resulting in 125 job losses.
No Future for Standalone Refining
In a statement, Phillips 66 said a detailed assessment made during the bid process led to the decision. The company stated it will "not restart standalone refinery operations at the Lindsey Oil Refinery."
The firm cited the site's "limitations of its scale, facilities, and capabilities" as reasons, concluding the refinery in its current form is not viable. Government support had allowed 250 workers to be retained until at least the end of March 2026 to facilitate the sale's completion.
Focus on Integration and Energy Security
Phillips 66 emphasised that the strategic investment is designed to enhance its existing Humber Refinery operations. The plan involves using Lindsey's storage and infrastructure to improve fuel supply across the UK.
"Once completed, the acquisition... will increase the company's ability to supply the UK market from the Humber Refinery, boost UK energy security, and support hundreds of well-paid, high-quality jobs," the company said.
Paul Fursey, Phillips 66 UK lead executive, acknowledged the difficulty of the site's closure for the workforce and local community. He stated the sale was the best path forward to "secure jobs, bolster the local economy, and encourage investment in the region."
Minister Backs "Credible" Buyer
Energy Minister Michael Shanks described Phillips 66 as the "most credible bidder" and said the agreement marked the next step in securing an industrial future for the site.
"Phillips 66 is an experienced and credible operator, and today's sale agreement allows them to quickly expand operations at its neighbouring refinery," Shanks said. He confirmed all remaining staff are guaranteed employment until the end of March.
The minister added the move would expand domestic fuel supply capacity and create hundreds of new construction jobs over the next five years. The shutdown of Lindsey last year left the UK with just four operational fuel refineries, increasing reliance on imports, particularly for Scotland.
