BBC: Shale gas: Ineos to invest £640m in UK exploration

Chemicals giant Ineos is to announce plans to invest up to $1bn (£640m) in shale gas exploration and production in the UK, the BBC understands.

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. Shale gas is extracted through a technique known as fracking, or hydraulic fracturing, in which water and chemicals are pumped into shale rock at high pressure.
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