INEOS moves to become biggest player in the UK Shale Gas Industry
INEOS has announced it is planning to invest $1 billion in UK onshore Shale gas exploration and appraisal. Substantial further investment would follow if the company moved into development and production.
If INEOS wins all the Petroleum Exploration and Development licences (PEDLs) it has bid for from the Department of Energy & Climate Change (DECC), the company would become the biggest player in the UK’s Shale gas industry.*
The vast majority of the INEOS bids are in Scotland and the North of England, where the local populations have either a mining or an industrial heritage.
INEOS believes that an indigenous Shale gas industry would transform UK manufacturing and that the gas can be extracted safely and responsibly.
Gary Haywood, CEO INEOS Upstream, says, “Whilst the awarding of the licences is a matter for DECC, we believe our knowledge and experience in running complex petrochemical facilities, coupled with the world class sub surface expertise we have recently added to our team, means that INEOS will be seen as a very safe pair of hands”.
INEOS today is already the owner of two substantial Shale licences in Scotland comprising over 120,000 acres, in addition to investing a further £400 million in an ambitious project to bring US Shale gas to Grangemouth.
The company has also announced plans to give local communities 6% of the revenues from any Shale gas it produces (4% going to home & land owners above the well and 2% to the wider local community). This offer is typically worth £375 million to a community and evidence is starting to emerge that suggests many communities welcome it.
Jim Ratcliffe, INEOS founder and chairman, says, “I want INEOS to be the biggest player in the UK Shale gas industry. I think Shale gas could revolutionise UK manufacturing as it has done in the USA. I believe INEOS has the resources to make it happen, the skills to extract the gas safely and the vision to realise that everyone must share in the rewards”