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Source: Glencore talks to UK government about insolvent Lindsey refinery supply

According to a source with knowledge of the situation, commodities trader Glencore has been in discussions with the British Government about the status and future of its contract for supply and offtake with the Lindsey oil refining plant.

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 has declined to comment.

The government has launched an investigation into the directors of Prax and the circumstances surrounding its insolvency.

Three sources familiar with the deal said that Glencore won the tender last year to supply crude to the Lindsey Refinery. Trafigura was replaced by Glencore.

Consultancy FTI - the Special Manager hired by the Government to assist the so called Official Receiver of an insolvent refinery - directed questions about the refinery to the British departments for Business and Trade, Energy Security and Net Zero.

The official receiver is responsible for dealing with the suppliers of the site.

No one from either department has commented on the talks with Glencore, or how long it would take for the refinery to continue operating if a deal is not reached.

A spokesperson from the Department for Energy Security and Net Zero referred to a statement made on Monday, which stated that the government will ensure the supply is maintained. (Reporting and editing by Alexandra Hudson, Ahmad Ghaddar added additional reporting).

(source: Reuters)