Posted By Global Banking and Finance Review
Posted on July 2, 2025
LONDON (Reuters) -Commodities trader Glencore is in talks with the British government over the status of its supply and offtake contract with the insolvent Lindsey oil refinery, according to a source familiar with the situation.
The 113,000-barrel-per-day refinery was owned by Prax prior to its insolvency which was announced on Monday, alongside the insolvency of Prax's parent group, putting hundreds of jobs at risk and potentially increasing Britain's reliance on fuel imports.
Glencore declined to comment.
The government has ordered an investigation into Prax's directors and the circumstances surrounding the insolvency.
Glencore last year won a tender to supply crude oil to the Lindsey refinery, replacing rival trader Trafigura, three sources with knowledge of the deal told Reuters at the time.
Consultancy FTI, the special manager hired by the government to assist the so-called Official Receiver of the insolvent refinery, directed questions on the refinery to Britain's departments for Business and Trade as well as Energy Security and Net Zero.
The Official Receiver is tasked with dealing with suppliers of the site.
Neither department commented on talks with Glencore or how long the refinery would be able to operate if no deal was reached.
A spokesperson for the department for Energy Security and Net Zero pointed to its statement from Monday which said that the government would ensure supplies were maintained.
(Reporting by Shadia Nasralla, additional reporting by Ahmad Ghaddar, editing by Alexandra Hudson)
