MOSCOW (MRC) -- Refiner and petrochemical group Ineos will invest around GBR 640m (USD1 billion) in shale gas exploration in the United Kingdom, according to Reuters.
The company plans to use the gas as a raw material for its chemicals plants, including Grangemouth in Stirlingshire. Grangemouth is currently running at a loss, but Ineos believes shale gas will transform the economics of the plant.
Shale gas extraction is promoted as an important potential energy source, but has prompted environmental concerns. In September, the Swiss-based group acquired a stake in a shale oil and gas licence in Scotland, and Britain's energy ministry said it planned to pay a share of revenues from any production to landowners and communities.
As MRC reported earlier, Ineos had announced plans to give 6% of its shale gas revenues to homeowners, landowners & communities who live above its shale gas operations. Ineos anticipates being a major player in the shale gas industry and believes it will give away over GBP2.5 billion over the life of its business.
The group entered the UK fracking industry in August, when it announced it would acquire a majority stake in the shale portion of a licence covering 329 sq km of Scotland’s Midland valley from BG Group.
It extended its interests in the sector last month by buying a majority stake in a neighbouring licence covering 400 sq km across four exploration blocks to the north and west of Glasgow.
Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.