The next steps for the hundreds of workers who could lose their jobs when Grangemouth oil refinery closes are being discussed by government ministers and union leaders.

Last year, oil and gas major Petroineos announced the refinery near Falkirk would be converted into an import terminal, but it will stay open until spring 2025.

The news sparked fears for hundreds of jobs linked with operations at Grangemouth.

The head of Falkirk council and owners Petroineos will also take part in Thursday’s online forum, along with Scottish and UK government ministers.

Petroineos said the refinery is “highly inefficient” and it cannot continue to run at a loss.

A licence to keep it open beyond 2025 is expected to cost £40m.

On Wednesday, UK government energy security minister Graham Stuart said providing that money would “not be a sensible use of British taxpayers’ money”.

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UK North Sea oil output has fallen by around a third since 2019, due to a natural decline in reserves and “a lack of major new projects coming on stream, in turn stemming from the 2020 oil price shock and an investment environment viewed by many as unfavourable”, according to S&P Global, which provides commodity insights.

The fears over the future of Grangemouth are part of a broader debate about ensuring a “just transition” – which refers to switching to a cleaner energy future in a way that is fair, ensuring people like workers are not left behind.

Domestic fossil fuel production supports around 133,000 direct and indirect jobs in oil and gas companies and the supply chain, according to industry group OEUK.

The UK’s Climate Change Committee says greening the economy will create between 135,000 and 725,000 green jobs by 2030 in sectors like EVs, renewable power and retrofitting homes with materials to reduce energy usage.

But the workforce needs to be reskilled, jobs must be provided in the right areas of the country, and disruption to some communities will have to be minimised, the CCC said in its net zero workforce report last year.

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Scotland’s energy secretary Neil Gray, chairing Thursday’s meeting, said his government is “committed to ensuring a just transition for Grangemouth”.

“The future of the refinery will play an important part in that, and we recognise that we cannot do this alone,” said Mr Gray.

“That is why I am today convening this critical meeting.”

He added: “I believe we can collectively work to ensure that there is a positive future for the site, for the workforce and for Scotland’s economy.”

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UK Government minister for Scotland John Lamont said: “This is a difficult time for those workers who are facing uncertainty, along with their families, and the communities around the refinery.

“The repurposing of Grangemouth Future Industry Board is an opportunity for the UK and Scottish governments to come together with representatives from Petroineos, and the local area as we seek assurances on how employees are being supported and explore how the long-term future of the site will continue to contribute to the local economy.”

UK Minister of State for Climate Graham Stuart is also taking part in the meeting.

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