In a move that could prove to be a game-changer for the United Kingdom energy market, Phillips 66 Limited has reached an agreement to purchase the significant assets of the Lindsey Oil Refinery. The UK is one of many aiming for increased refining capacity in the new year and has positioned itself to dramatically increase energy generation from the fossil fuel sector, while keeping a close eye on the advancement of the renewable energy sector in 2026.
Can Phillips 66 Limited open the door to a new era of refining capacity for the UK?
Phillips 66 Limited has been operating in the UK market for well over 60 years now, and has become the backbone of the UK energy industry. The company focuses on developing integrated downstream operations that play a vital role in energy supply for the United Kingdom.
With the new year revealing an expected increase in demand for refined products in the UK, Phillips 66 Limited, which is a wholly owned subsidiary of Phillips 66, has agreed on terms to purchase the substantial assets of the Lindsey Oil Refinery in North Killingholme, North Lincolnshire.
For any energy company, developing projects can often require purchasing additional refining assets to boost capacity. The Lindsey Oil refinery saw the Official Receiver appointed as liquidator in June, 2025.
The end of one refinery opens the door for a new opportunity for Phillips 66 Limited
Since its opening in May 1968, the 113,000 b/d Lindsey Refinery has experienced a troubled operational history. The now axed 415 workers have raised concerns following Phillips 66 Limited’s purchase of the refinery assets, as the company has stated that the Lindsey Oil Refinery assets will be diverted to the nearby Humber Refinery.
“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 recognize and deeply sympathize 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.” – Paul Fursey, Phillips 66 UK lead executive
The Lindsey Refinery will close its doors in the near future
Following the conclusion of the bidding process by FTI Consulting, Phillips 66 Limited has announced that once all the relevant conditions have been met, the company will integrate the Lindsey Refinery assets into the nearby Humber Refinery, also located in North Lincolnshire.
Following an extensive and thorough assessment of the Lindsey Refinery, Phillips has stated that it will not be restarting operations and instead will divert the refinery’s assets to the company’s other refineries. Due to several mitigating factors, Phillips 66 Limited has determined that the Lindsey Refinery is not viable in its current form.
To increase the UK’s upstream capacity, a new joint venture investment platform has been created by some of the largest and most profitable energy companies in the world. This new opportunity for increased refining capacity in the UK comes at a pivotal point as the nation anticipates the annual increase in energy demand.
On top of the recent acquisition of the Lindsey Refinery assets, Phillips 66 Limited is also planning to invest in a long-term project at its Humber refinery to enable the production of higher-quality gasoline and other fuels.
The UK is faced with a quandary over the future of its energy industry
While companies like Phillips 66 Limited provide the necessary planned increases in refining capacity, the UK authorities have approved the expansion plan for the Rampion 2 wind power project. This quandary has placed the UK in an exceedingly challenging situation; either invest in increasing refining capacity, or double down on the investments in the renewable energy sector in 2026?
