ENERGY giant British Petroleum (BP) was shutting down a pipeline carrying nearly half of Britain's oil late yesterday ahead of a strike over pensions that has already closed a major refinery and prompted some panic fuel buying.
The closure of the Forties Pipeline System is a consequence of a 48-hour strike planned at the Grangemouth oil refinery in central Scotland today. That has already forced refinery owner Ineos to stop production at the facility, which provides electricity and steam to the pipeline.
BP said the pipeline was due to completely shut down by 6am (0500GMT) today, something a British energy industry group said could cost 50 million pounds (US$99 million) a day in lost production.
Oil & Gas UK chief executive Malcolm Webb demanded the government intervene "to ensure that the country is not held to ransom in this manner," adding that the strike "is now affecting some 80 companies and their operations which are in no way connected to or involved in this dispute."
The shutdown has also raised fears of gas shortages in Scotland and parts of northern England, which rely on the system for their fuel.
The government wants to avoid a repeat of scenes in 2000 when motorists were forced to line up at gas stations as truckers angry at heavily taxed fuel brought Britain to a standstill by blockading refineries, and has urged drivers not to hoard gasoline.
"There is plenty of petrol and diesel in Scotland to meet demand during this period of time," the government's business secretary, John Hutton, told the British Broadcasting Corp. "But of course there is going to be a challenge if people change the way that they consume fuel."
Pat Waters of the Automobile Association said he was not so sure.
"I think there will be some difficulties despite the assurances," he said, adding that rationing was a possibility.
Gas stations in and around Edinburgh were limiting gas purchases to 20 pounds per visit yesterday, and lines of cars formed beside some pumps. A number of stations ran out of gas and diesel by midmorning.
Some gas stations were charging 1.25 pounds yesterday for a liter of unleaded, up from about 1.08 pounds on Monday.
Scottish First Minister Alex Salmond said BP was releasing extra stocks to help meet demand, and that fuel arriving by boat from European ports would also help fill the gap.
Prime Minister Gordon Brown said the strike was unnecessary and called for new negotiations between Ineos and the workers' union, Unite. Talks to avert a strike broke down earlier this week.
Grangemouth's 1,200 workers planned the strike over pension issues, one of a series of labor disputes to hit Britain as the global economy weakens.