INEOS intends to give 6% of its revenues from Shale gas to communities who live above its operations sites in the UK.
The company estimates that it will share £2.5bn of its profits over the life of its Shale gas business in the country.
The company believes this step will generate community support for Shale gas production.
The sharing of profits from Shale gas is practiced in the US.
INEOS founder and chairman Jim Ratcliffe said: "We think this is a game changer for Britain.
"Giving 6% of the revenues to those living above our Shale gas operations will give them a real stake in the success of the venture and encourage the development of the whole Shale gas industry".
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By GlobalDataThe communities living within approximately 100km² will receive the benefit from the production of 200 wells, about £375m will be split between them.
On the other hand, home and landowners directly living above the wells would receive £250m and the remaining of an INEOS Shale gas community will receive £125m, which will go towards construction of schools, parks and hospitals.
Home and land owners would receive more than £1.3m and the community would get £600,000 during the lifetime of one well.
Ratcliffe added: "Giving 6% of revenues to those directly above Shale gas wells means the rewards are fairly shared by everyone. It’s what they do in the USA and we think it is right to do this here. It democratises the Shale gas revolution."
Going forward, UK shale has the potential to make up a significant proportion of the total gas requirements in the UK, the company stated.
Shale gas produces almost 50% less greenhouse gas than coal.
Image: Those living in an INEOS Shale gas community (100km²) would typically share £375m over the life of the project. Photo: courtesy of INEOS.
