A global energy firm part-owned by billionaire Jim Ratcliffe is in talks with the government over the future of fuel supply.
It’s understood discussions between Petroineos and the Scottish and UK governments were prompted by a slump in oil demand.
Talks are said to include an emergency loan, possibly as high as £500 million according to a report by broadcaster Sky News.
The firm is jointly owned by Ratcliffe’s Ineos Group - which has a huge base at Grangemouth - and Chinese state-owned company PetroChina.
Petroineos trades crude oil and refined products across its Scottish and French bases, processing more than 420,000 barrels of crude oil a day.
A spokesman for the company refused to discuss claims about a loan but said they are “taking steps to ensure ongoing supply of fuel”.
The spokesman added: “The Petroineos refinery at Grangemouth supplies fuel for use in all sectors across Scotland, Northern England and Northern Ireland.
“As critical national infrastructure within the UK, our focus is on maintaining reliable fuel supply to our customers during this public health pandemic.
“During this period of unprecedented challenge, with people following Government advice to stay at home, demand for road and jet fuel has dropped significantly.
“As a responsible operator of Scotland’s only refinery, Petroineos is in regular discussion with the Scottish and UK Governments on a variety of matters.
“We are taking steps to ensure the ongoing supply of fuel to Scotland, Northern England and Northern Ireland to support the needs of the public and industry as the economy begins to emerge from COVID-19 lock down.”
The Unite union, which represents many workers at Grangemouth, said: “Unite is working closely with the company to explore all options to ensure the continued success of the Grangemouth site.
“It’s also important to state that Unite has been working positively throughout this crisis with Petroineos on a number of key issues including safety and furlough agreements.”
A Scottish Government spokesman said: “The Scottish Government is in regular contact with businesses and trades unions in sectors acutely exposed to the economic challenges of Covid-19.”
