MOSCOW (MRC) -- INEOS was awarded 21 new shale gas licences as the final part of the UK Government’s 14th licensing round. The company, which is now one of the UK’s biggest shale gas players, was awarded 700,000 acres on top of its existing 300,000 acres, said the company on its site.
As part of the Department of Energy and Climate Change announcement, the company was awarded licenses in the East Midlands and the North West. Areas include Runcorn, close to INEOS' giant manufacturing facility in the town, and additional licenses in North Yorkshire, close to INEOS’ plants in Hull and Newton Aycliffe.
All licenses awarded by DECC are subject to planning permissions and as part of this INEOS has committed to full consultation with all local communities before proceeding with any shale gas development. The company has also committed to share 6% of revenues with homeowners, landowners & communities close to its shale gas wells.
Jim Ratcliffe, INEOS Chairman, says, "We are delighted with today’s announcement. The UK government has demonstrated it is determined to move forward with this exciting new industry. This is the start of a shale gas revolution that will transform manufacturing in the UK. INEOS has the skills to safely extract the gas and we have already committed to both fully consult and to share the rewards with the local communities. "
INEOS believes that its knowledge and experience in running complex petrochemical facilities, coupled with its world class sub-surface expertise makes it the right company to extract UK shale gas.
Unlike many of its rivals INEOS can use shale gas as both a feedstock and a power source. This means shale gas could help underpin the competiveness of INEOS’s manufacturing sites across the UK for years to come. Potentially these new "shale economics" could bolster the wider UK manufacturing sector as they have done in the US.
Jim Ratcliffe, INEOS Chairman, adds "At INEOS, we believe shale gas could revolutionise UK manufacturing and we have the resources to make it happen, the skills to extract the gas safely and the vision to realise that communities must share in the rewards for it to be successfully developed."
As MRC wrote before, Ineos will invest around GBR 640m (USD1 billion) in shale gas exploration in the United Kingdom. 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.
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.
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