Shale Gas Ineos Fears for UK Production After Proposed Moratorium on Fracking
Ineos has heavily critisised the Environment Audit Committee’s call for a moratorium on fracking in the UK, raising concerns that it might lead to a decline in UK manufacturing. The company operates a large ethane processing site in Grangemouth, Scotland.
Grangemouth/United Kingdom – The proposed moratorium could seriously affect manufacturing in the UK, INeos believes. Also the future of its site at Grangemouth, which is currently processing imported gas from US shales, could be affected if these were not replaced by Scottish gas within the next 15 years, a company executive stated. Although Ineos later claimed, that also mid- to long-term-supplies for Grangemouth were secured, this stamemt seriously unsettled workers at Scotland's biggest manufacturing plant.
“The UK needs Shale gas. We have committed to consultation with local communities and to give them 6% of the entire revenue from our Shale gas wells. Without Shale gas, UK manufacturing will start to collapse so we need to kick start the Shale gas industry, not put it on hold”, Ineos Director Tom Crotty said. Apart from processing US gas, Ineos has been on the forefront of UK shale development, recruiting experts from overseas and developing gas extraction and marketing plans. In December 2014, the company announced planned invest in the billion dollar range for gas exploration and appraisals.
The moratorium represents a "missed opportunity" for the UK, Crotty believes: “The Committee deliberately sought out views that focussed on concerns about water quality, emissions and geological integrity and so produced a partisan and partial report. The Committee refused to see Ineos and didn’t look hard enough at the massive decline in the UK’s manufacturing base and the country’s desperate need for Shale gas to reduce energy costs and revitalise industry”