Petrochemicals firm Ineos plans to invest $1bn in shale gas exploration and appraisal in the UK, in an effort to source indigenous gas for its processing plants.
The company has bid for licences in the UK Government’s 14th onshore round, the majority of which are in Scotland and northern England.
Ineos will be the biggest player in the UK shale gas industry if it wins all the licences it has applied for, it said.
The company currently owns two shale licences in Scotland covering more than 120,000 acres.
In August, the company acquired BG Group’s 51% stake in the shale exploration licence in Scotland. The 329km2 site surrounds Ineos refining and petrochemical plant at Grangemouth.
Again in October, the company signed an agreement to buy an 80% stake in the exploration licence next to its first licence, from Reach Coal Seam Gas.Ineos is investing £400m in a project to bring US shale gas to Grangemouth.
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By GlobalDataIneos founder and chairman Jim Ratcliffe said: "I think shale gas could revolutionise UK manufacturing as it has done in the USA. I believe 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."
In September, Ineos has announced that it will share 6% of shale gas revenues with communities where it is identified; 4% would go to home and land owners and 2% to the local community.
The company estimates that it will share £2.5bn of its profits over the life of its shale gas business in the country.
Ineos manufactures petrochemicals, speciality chemicals and oil products. The company’s production network spans 51 manufacturing facilities in 11 countries globally.
Image: Ineos’ Grangemouth petrochemical plant in Scotland. Photo: Courtesy of Paul McIlroy.
