Ineos Attacks UK Labour Party on Shale Ban

Swiss-based petrochemicals firm Ineos this week wrote to UK Labour Party leader Jeremy Corbyn following the latter's announcement of plans to ban hydraulic fracturing should the party win an election.

Ineos' shale CEO Gary Haywood said in an October 18 letter that the company was "deeply disappointed by this announcement. As the company with the largest number of shale licences in the UK and as the employer of 4,000 people in this country alone we are surprised not to have had the opportunity to discuss this matter with you prior to your announcement."

Labour leader, Jeremy Corbyn

(Credit: Labour Party)

He said that while Ineos and Labour do not "currently see eye to eye on the opportunity that shale presents for energy, for jobs, and for this country, we would like to make ourselves and our technical teams available as needed to enable us to discuss the rationale for your decision to oppose fracking. In his speech, Barry Gardiner MP placed his support behind renewables as the preferred source for the UK’s future electricity supplies. This leaves unanswered the question of how the UK would then heat its homes, manufacture its products and keep the lights on when the wind isn’t blowing."

The letter, including references to research papers, may be read in full here.

Ineos, which has just begun importing ethane from the US for its UK and Norwegian plants, is also interested in buying North Sea gas assets from Shell, according to The Times. Following its purchase of BG this year, the Anglo-Dutch major is seeking to sell assets in a $30bn disposal exercise. Its global upstream head Andy Brown said this week that Shell worldwide has put 16 assets each worth over $500mn on the market but gave no details about specific assets. 

Ineos already has a small offshore position. It bought LetterOne's stake in UK gas assets, including the Breagh and Clipper South fields, which the UK government forced Russian-owned LetterOne to sell it within six months of its purchase of them from German producer RWE Dea. The UK government did not want a Russian operator operating UK gas producing assets. The two fields can provide up to 8% of UK gas supply. Russian oligarch Mikhail Fridman was one of the founders of LetterOne.

William Powell