Lindsey Oil Refinery
| Company type | Private |
|---|---|
| Industry | Oil refinery |
| Founded | 1965 |
| Headquarters | North Killingholme, North Lincolnshire , England, United Kingdom |
| Products | Approximately 35 different oil products |
| Owner | Prax Group |
Number of employees | Approximately 415 permanent employees plus several hundred contractors |
Prax Lindsey Oil Refinery is an oil refinery situated in North Killingholme, North Lincolnshire, England, and is owned and managed by the Prax Group. Positioned to the north of the Humber Refinery, which belongs to rival company Phillips 66, it lies close to the railway route leading to Immingham Docks. The facility receives electricity and process heat for fractionation from Immingham Power Station, operated by VPI Immingham.
On 29 June 2025, the owning entity entered insolvency proceedings, resulting in UK government intervention through funding and the appointment of insolvency specialists to ensure continued operations while searching for potential new owners.
History and operation
The refinery’s establishment was initially announced in Belgium on 17 February 1965. In that year, the East Midlands Gas Board constructed a £6.5 million plant in collaboration with Total. On 19 June 1968, the Prince of Wales visited the facility and also toured adjacent North Sea gas fields.
During the early 1970s, the Central Electricity Generating Board (CEGB) proposed building a 4,000 MW oil-fired power station nearby, alongside another planned for Insworke in Cornwall; however, both schemes were cancelled by March 1975.
Construction
Construction commenced in November 1965 under the direction of Lummus Company, aiming for a processing capacity of 65,000 barrels per day (equivalent to 3.5 million tons annually), with an initial operational target set for 1967. Storage tanks were provided by William Neill from Merseyside.
The construction phase experienced a fatality when a Sir Robert McAlpine employee fell on 10 August 1967 among approximately 2,000 workers present onsite. Additionally, on 27 November 1967, an explosion occurred in a boiler house causing injuries to four workers and resulting in one death.
Opening
By late 1968, refining capacity across the UK had reached 96 million tons, reflecting an increase of 18.8 million tons that year. The refinery’s construction cost was £30 million, matching that of a nearby similar facility.
The official inauguration took place on 28 June 1968 by Ray Gunter, then Labour Minister of Power, with the refinery named after the former Lindsey district within Lincolnshire.
Operations began in May 1968 as a joint venture between Total and Fina.
Operation
In September 1971, the refinery processed its first shipment of North Sea oil sourced from Norway’s Ekofisk field delivered via a tanker weighing 30,000 tons.
Currently, approximately 415 permanent employees work at the refinery alongside several hundred contractors; staffing levels increase during significant maintenance periods. Total assumed full ownership in 1999 by acquiring Fina’s share.
The facility produces roughly 35 different products and processes about 113,000 barrels of crude oil daily following capacity reductions implemented during Total’s restructuring efforts.
Crude supplies arrive through two pipelines connected to a jetty measuring 1,000 meters located five miles away at Immingham Dock.
In March 2021, ownership transferred to Prax Group following its acquisition from Total S.A.
Production units
An expansion during the early 1970s raised refining capacity to 7 million tons annually at a cost of £10 million, equally funded by French and Belgian partners.
Starting in 1973, Total constructed a pipeline stretching 64 miles northwest. Additionally, a £500,000 oil terminal was inaugurated in Leeds in April 1968 featuring rail transportation links.
Further production units were added between 1976 and completion in 1979 at an investment of £58 million involving around 1,500 construction workers.
By 1977, it ranked as the sixth-largest refinery in the UK with an annual throughput near 10 million tonnes. The installation of a catalytic cracker that year enhanced fuel processing efficiency by approximately one-third.
Throughout the 1980s, new units including a fluid catalytic cracker, alkylation plant, visbreaker, and MTBE unit for producing high-octane petrol were introduced. A £50 million upgrade commenced in May 1982.
From 1988 onwards, the Belgian partner developed a pipeline linking to an oil terminal located in Hertfordshire.
By 1998, processing capacity had grown to around 200,000 barrels per day, making it the third-largest refinery within the UK.
In 2007, a distillate hydrotreater (HDS) was installed. Between June 2008 and June 2009, Jacobs Engineering built a methane steam reformer hydrogen generation unit designed to support ultra-low sulfur diesel production and enable processing of varied crude types using catalytic crackers or hydrocrackers.
2009 labour dispute
On 28 January 2009, approximately 800 local subcontractors at Lindsey Oil Refinery initiated a strike following the recruitment by Italian firm IREM of several hundred European workers, predominantly from Italy and Portugal, amid widespread local and international unemployment concerns. This action prompted solidarity walkouts at various petroleum, power generation, and chemical facilities across the UK. In June 2009, the dismissal of 700 employees at the refinery triggered additional strikes at other locations. Subsequent discussions resulted in the reinstatement of 647 dismissed workers by the close of June.
2025 financial challenges
On 30 June 2025, State Oil, the parent company of Prax Group, declared insolvency, primarily due to operational losses incurred at Lindsey refinery, threatening over 400 jobs. To maintain refinery operations while a prospective purchaser was sought, the UK government extended a financial guarantee to the official receiver.
2004 environmental spill
In December 2004, a pipeline failure at Lindsey refinery discharged 60,000 litres of crude oil into the Humber Estuary. At that time owner Total admitted guilt in 2005 and was fined £12,500 plus additional costs. The Environment Agency confirmed there was no lasting environmental damage.
2010 fatal incident
On 29 June 2010, an explosion followed by a fire erupted beneath an Atmospheric Distillation Column (CDU-2) during maintenance activities, resulting in one fatality and injuries to others. Three days after the event, Total reported detecting asbestos contamination within the crude oil distillation unit.
References
- Lindsey Oil Refinery deal completes as Prax takes the helm on 1 March 2021
- Prax Group completes acquisition of UK's Lindsey Refinery on 1 March 2021
- Prax Group completes Total UK refinery buy on 8 March 2021
External links
- Oil refineries in the United Kingdom
- Buildings and structures in Lincolnshire
- Energy infrastructure completed in 1968
- Borough of North Lincolnshire
- TotalEnergies
- 2010 disasters in the United Kingdom
- 2010 fires in Europe
- 2010s fires in the United Kingdom
- Building and structure fires in England
- June 2010 in the United Kingdom