INEOS to Invest £640 million in Shale Gas Exploration in the UK

INEOS committed to a £640 million investment in shale gas exploration in the UK, Matt Hancock, Minister for Business, Enterprise and Energy, wrote on Thursday. 

‘Delighted to welcome the £640m Ineos investment in UK shale gas. A strong stride forward for this important domestic energy source’ Hancock wrote on Twitter, adding that unconventional gas has the potential to strengthen energy security in the country while also securing jobs.

In October, INEOS Upstream signed an agreement to acquire from Reach Coal Seam Gas an 80% interest in PEDL 162 in the Midland Valley near its plant at Grangemouth in Scotland, and plans to apply for additional licenses in Scotland and the north of England..  

“I want INEOS to be the biggest player in the UK shale gas industry. I believe shale gas could revolutionise UK manufacturing and I know Ineos has the resources to make it happen” Chief executive of Ineos Upstream, Gary Haywood, commented on Thursday. 

Reaction from the Scottish Government was more muted.  A government spokesman said there should be an emphasis on strong environmental protection and the views of communities, when considering the use of shale gas.

“The Scottish Government believes that we should proceed cautiously and take an evidence-based approach to unconventional oil and gas extraction, including ensuring strong environmental protection and making sure that the views of communities are taken into account."