§ Mr. Skeetasked the Secretary of State for Energy (1) in view of the surplus refining capacity in the United Kingdom and the EEC, why he has authorised the construction of new capacity in the United Kingdom under Part IV of the Petroleum and Submarine Pipe-lines Act 1975; and what has been the amount of new distillation capacity authorised in the last two years;
(2) of new refinery capacity built, under construction or projected in the United Kingdom in the past two years, what tonnage falls within the consent requirement of Section 34(1)(a) of the Petroleum and Submarine Pipe-lines Act 1975; what tonnage under Section 34(1)(b), relating to the Town and Country Planning Act 1971; and what has been the tonnage outside control:
296W(3) whether he has revoked any authorisations given or conditions imposed under Sections 34 and 35 of the Petroleum and Submarine Pipe-lines Act 1975: and if he will give particulars of the use made of these powers.
§ Dr. J. Dickson MabonI have not authorised any new refining capacity under Section 34 of the Petroleum and Submarine Pipe-lines Act 1975, nor have I revoked any authorisations or conditions imposed under that section or section 35. I am aware of a total of 26 million tonnes of planned new capacity in the United Kingdom which has outline planning permission, and of 2.1 million tonnes of new capacity completed in the last two years, all of which fall under Section 34(1)(b) of the Act and, therefore, do not require my authorisation. I am also aware of one other extension of less than 0.5 million tonnes and thus below the limit requiring my authorisation under Section 34(2) of the Act.
§ Mr. Skeetasked the Secretary of State for Energy what information he has about the closure of existing refining capacity in the United Kingdom during the past three years and the actual tonnage involved.
§ Dr. J. Dickson MabonChanges in the capacities of individual United Kingdom refineries are published annually by my Department in the Digest of United Kingdom Energy Statistics, and Table 42 of the 1977 edition gives the position up to the end of 1976. I am aware of one refining unit of 0.7 million capacity which has permanently closed since then.
§ Mr. Skeetasked the Secretary of State for Energy, on the assumption that refinery utilisation in the United Kingdom is currently about 60 per cent. of capacity, on what date he anticipates that full utilisation will be achieved involving refineries in use, under construction and new capacity authorised to date.
§ Dr. J. Dickson MabonThis will depend on the rate of growth of the economy as a whole, as well as the availability of other fuels. But under-utilisation of United Kingdom crude distillation capacity seems likely to persist into the 1980s.
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§ Mr. Skeetasked the Secretary of State for Energy whether the capacity of catalytic cracking and associated units in use, under construction or projected is related to United Kingdom requirements or EEC demand.
§ Dr. J. Dickson MabonMost of the output from existing or projected United Kingdom capacity is for United Kingdom consumption and is expected to make a contribution towards strengthening the United Kingdom import-export balance on petroleum products. The proportion will vary from company to company.
§ Mr. Skeetasked the Secretary of State for Energy (1) while he is authorised to control the amount of new distillation capacity under the provisions of Section 34 of the Petroleum and Submarine Pipelines Act 1975, what powers he has in relation to integral units in processing, namely catalytic crackers, for altering the yield of products, within the existing crude oil distillation capacity;
(2) in normal conditions, what powers he has to control the capacity of United Kingdom refineries for the production of varying yields of light and heavy oils and middle distillates.
§ Dr. J. Dickson MabonIn normal times I have no statutory powers to control the construction of secondary processing plant at existing refineries, or its use to vary the output of products. However, in respect of projects for new crude refining plant which require my authorisation under Section 43 of the Petroleum and Submarine Pipe-lines Act 1975 I have the power to impose conditions which could relate to additional secondary capacity. There are powers in the Energy Act 1976 which could be used in an emergency.
§ Mr. Skeetasked the Secretary of State for Energy what amount of aid, grant or subsidy has been made available from public funds to promote the extension of existing refineries or the construction of new ones in the United Kingdom during the past three years.
§ Mr. CryerI have been asked to reply. Assistance has been offered under the Industry Act 1972 as follows:298W
£million 1975 1976 1977 Section 7 regional selective assistance loans 0.10 — — grants 0.02 — — Section 8 selective financial assistance grants — 20.2 — Payment of regional development grant may also be made under Part I of the Act on the cost of new building and new plant and machinery required for refineries. Information on the total payments made for this purpose is not readily available.