Ineos in $1bn Bid to Become UK’s Biggest Fracking Firm

Ineos in $1bn Bid to Become UK’s Biggest Fracking Firm

Swiss-based petrochemical firm Ineos launched plans Thursday to become the biggest player in Britain’s fracking sector with a $1.0-billion investment in the nation’s shale gas industry.

The company added that “substantial further investment would follow if the company moved into development and production”.

Ineos already has fracking licences near its plant at Grangemouth in Scotland, but is applying for more in Scotland and the north of England.

In order to extract shale gas, a high-pressure blend of water, sand and chemicals is blasted deep underground to release hydrocarbons trapped between layers of rock.

Campaigners argue the controversial process — known as fracking, or hydraulic fracturing technology — causes water pollution and earth tremors, but energy groups say it drives down gas prices, creates jobs and boosts economic growth.

?I want Ineos to be the biggest player in the UK shale gas industry,” said chairman Jim Ratcliffe.

Ineos already has two fracking licences for over 120,000 acres, and has also invested £400 million in a project to bring US shale gas into Grangemouth.

The company has also pledged to give local communities six percent of the revenues from shale gas production, worth an estimated £375 million.

Thursday’s announcement was greeted with anger by Greenpeace.

However, the announcement was welcomed by British Prime Minister David Cameron’s government.

Energy minister Matt Hancock tweeted that he was “delighted” at the news, which he described as “a strong stride forward for this important domestic energy source”.

Cameron had announced in January that his government was going “all out for shale” as it seeks to create more jobs, boost taxation revenues and reduce Britain’s reliance on foreign energy sources.

European Union states are however divided on fracking, with countries such as France banning the controversial process.