Ineos buys out Engie's UK shale gas interests

Private petrochemicals group Ineos has bought the 15 UK shale gas drilling licences from France's Engie for an undisclosed sum, as the future of fracking in the country remains up in the air.

Ineos, the vehicle of billionaire jim Ratcliffe, said the deal had expanded its UK shale portfolio by 10% to more than 1.2m acres, making it by far the country's biggest shale player.

The licences cover exploration rights across Cheshire, the East Midlands and Yorkshire, including what was Engie’s 30% stakes in four blocks operated by Cuadrilla in the latter and increasing its stakes in seven Igas licences and new stakes in four others operated by Igas.

Significant reserves of shale gas are said to be located around the UK but while the UK government is keep to tap this resource to boost energy output, various companies' attempts to gain permission for fracking have been blocked by local councils due to widespread public concern about groundwater contamination and even worries about potential earthquakes.

Engie said it had decided to exit from UK shale after a strategic review “in response to commodity price declines”.

In his zeal to try and develop Britain’s shale gas resources, Ratcliffe has been known to offer more generous compensation packages to locals affected by fracking than the industry standard.