Ineos to invest £640m in UK shale gas exploration
Ineos has promised to invest up to £640m in shale gas exploration in the UK if it is awarded the necessary licenses.
"I believe shale gas could revolutionise UK manufacturing, and I know 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," Jim Ratcliffe, chairman of the Swiss-based petrochemical giant, said.
"Substantial further investment" would follow if exploration led to development and production of gas, Ratcliffe added.
Earlier this year, Ineos said it would share as much as £2.5bn of its shale gas revenues with communities close to its wells.
To date, the chemical group has bought into two exploration licences in the area surrounding its production complex at Grangemouth, Scotland. Most recently, it acquired an 80% stake in a licence held by Reach Coal Seam Gas for a 400 km2 site is adjacent to a 329 km2, for which it took 51% stake in an exploration licence from the BG group earlier in the year.
The Scottish government has called for devolved powers on fracking after the UK government decided to press ahead with plans to let companies drill at depths of 300 meters below private land without consent.
Greenpeace UK criticized Ineos' investment plans as "giant speculative bets on unproven and risky resources."
Media reports said the Ineos announcement showed careful timing, as the UK government is currently assessing applications made by operators for new onshore licenses to explore for shale gas, and potential drillers are being asked to demonstrate that they have the cash and know-how to exploit a license area.
State broadcasting company BBC suggested that similar announcements from other industry players could be expected in the near future.
