Oil firm fined £1.65m following explosion

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Oil company, Essar Oil (UK) Ltd has been slapped with a £1.65 million fine following an explosion at its Stanlow refinery in Ellesmere Port.

Despite there being no injuries, the blast on 14 November 2013 caused internal structures to collapse, resulting in damages of more than £20 million, Liverpool Crown Court heard.

Problems started at the site during the start-up of its main distillation unit. Extremely flammable hydrocarbons entered an unignited furnace and heat from another nearby furnace triggered the explosion, which destroyed the furnace and started a number of fires.

The incident was reported to the European Union as a major accident under schedule 7 of the Control of Major Accident Hazards (COMAH) Regulations 1999.

A Health and Safety Executive (HSE) investigation found that the firm failed to take all measures necessary to prevent or mitigate a major accident.

It identified three key failings, including a safety critical valve that was ordered and installed incorrectly, with Essar failing to correctly validate its operation.

In addition, Essar failed to adequately assess the installation of a new safety critical trip as they failed to recognise the system had a by-pass line, which defeated the trip’s operation, and Essar’s policy was to isolate main fuel lines to the furnace however, the hydrocarbons entered the furnace via a secondary fuel line which had not been isolated when shut down.

HSE principal inspector Joanne Eccles said: “The industry should take notice of this case, there were no injuries but mistakes were made and could have been prevented.”

Essar Oil (UK) Ltd of the Stanlow Manufacturing Complex, Ellesmere Port, pleaded guilty to breaching Regulation 4 of the Control of Major Hazards Regulations 1999. It was fined £1.65 million with costs of £57,644.80.