Ineos to invest £1bn in Forties pipeline, Grangemouth refinery
Petrochemicals company Ineos has announced plans to invest £1bn in overhauling its UK oil and gas pipelines, expanding its refinery and building a new chemicals plant.
Ineos will invest £500m in the Forties pipeline system to prolong the life of the North Sea’s main oil and gas artery all the way into the 2040s. The pipeline currently transports 40% of the UK’s oil and gas to the mainland.
The privately held company also wants to overhaul the reliability of the 500km pipeline system including modernising the environmental systems and implementing new technology.
Andrew Gardner, Ineos FPS chief executive, said, “North Sea oil and gas producers are telling us that they want to be in the North Sea well into the 2040s so we are making this commitment to be there with them. Following acquisition of FPS in 2017 we are now embarking on a period of investment that will guarantee that the system can support them for decades to come.”
It will also invest £350m at its Grangemouth refinery in Scotland, with a new energy plant that will allow for the development of a new steam and power plant, while aiming to improve energy efficiency and long-term reliability.
Another £150m has been allocated to build a 300,000-tonne-per-year vinyl acetate monomer plant in Hull.
Sir Jim Ratcliffe, founder and chairman, said: “Ineos is a supporter of British manufacturing and this £1bn investment underlines our confidence in our business in the UK. These investments will ensure that our UK assets continue to be world class for many years to come.”
Ratcliffe, who is a prominent Brexiteer, came under fire earlier this months after reports came out claiming he was planning to re-organise his financial affairs in Monaco in a bid to avoid paying up to £4bn in taxes.
The company, which is valued at £35bn, is working with tax experts at PriceWaterhouseCoopers to create a new financial structure for the business to reduce the tax paid on global revenues.
Ratcliffe concluded: “At an uncertain moment for the country, INEOS has confidence in its businesses and is committed to continue investing in manufacturing and high skilled jobs in the UK.”
Ratcliffe who also previously lobbied against high green taxes and restrictions on fracking, has been criticised by MPs, who have accused him of jumping ship despite his strong support for Brexit.
“The idea we should be dishing out knighthoods to people who have no commitment to this country is rather shameful,” Liberal Democrat leader Vince Cable told the Sunday Times earlier this month.