Phillips 66 to buy Lindsey oil refinery

(Sharecast News) - US energy firm Phillips 66 said on Monday that it has agreed to buy the Lindsey oil refinery out of administration and that it won't be restarting fuel production there. The North Lincolnshire site was taken over by the official receiver in June 2025 after Prax Group collapsed into administration.

Phillips 66 owns owns and operates the Humber refinery in North Lincolnshire, which contributes to the UK's demand for liquid fuels used in transport, heating and power.

The company said on Monday that it plans to integrate key assets into its Humber refinery operations. It has decided not to restart standalone refinery operations at the Lindsey refinery following "a thorough assessment undertaken during the bid process".

"Due to the limitations of its scale, facilities, and capabilities, evaluations have shown that the refinery is not viable in current form," it said.

Phillips 66 said the deal and strategic investment will increase its ability to supply the UK market from the Humber refinery, boost UK energy security, "and support hundreds of well-paid, high-quality jobs through site operations and future investment".

Lead executive Paul Fursey said: "Agreeing to acquire Lindsey Oil Refinery assets and associated infrastructure marks an important step for Phillips 66 Limited as we continue to invest in the UK's energy security.

"We recognise and deeply sympathise with how difficult the closure of the site has been for the workforce and the local community. This sale is the best way forward to secure jobs, bolster the local economy, and encourage investment in the region."

Phillips 66 is also investing in a multi-year project at its Humber site that will enable production of higher-quality gasoline.

Responding to the announcement, Sharon Graham, general secretary of union Unite, said: "Lindsey oil refinery is a critical piece of UK energy infrastructure. Phillips 66 should not be allowed to just mothball the site and turn it into a glorified storage tank.

"Lindsey is one of the few remaining oil refineries left in the UK, supplying a quarter of the country's diesel market when running properly and supporting hundreds of highly skilled jobs.

"The government should be working with Phillips 66 to ensure this sale retains and creates jobs and helps safeguard the nation's energy security rather than harming it.

"The Labour government needs to finally get into gear. It's net zero policies are hurting workers - it's time it showed them whose side it is on."