INEOS announces £1 billion investment in UK oil and petrochemicals
27 Feb 2019
INEOS has announced a slew of investments in the British process industries totalling more than £1 billion.
Half of the sum will be focused on the Forties Pipeline System in the North Sea and is designed to extend the life of the FPS by two decades into the 2040s.
INEOS founder and chairman Jim Ratcliffe stated: “INEOS is a supporter of British manufacturing and this £1 billion 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.”
Highlights of the investment include:
£500 million for the Forties Pipeline
£350 million for a new energy plant at Grangemouth
£150 million to construct a Vinyl Acetate Monomer (VAM) plant at Saltend Chemical Park in Hull
Ratcliffe, one of the most high-profile supporters of Brexit within the manufacturing sector, had recently been criticised for his announcement he intended to quit the UK for Monaco.
This £1 billion investment underlines our confidence in our business in the UK
Jim Ratcliffe, founder and chairman, Ineos
However, the latest investment underlines the Ineos chief’s continued strategy of investing in a secure future for the UK energy supply and petrochemical sector.
Said Ratcliffe: “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.”
The 500 kilometre FPS is responsible for transporting 0.6 million barrels daily for onshore refining and 40% of the UK’s oil and gas to mainland Britain.
As expected, the investments were welcomed enthusiastically in Grangemouth and Hull.
Tobias Hannemann, CEO for O&P UK said: “This investment forms part of our wider plans to secure a bright future for manufacturing at Grangemouth and will continue its renaissance as a world-class petrochemicals site while supporting the refinery, FPS and wider UK economy.”
The VAM plant in Hull will provide a key component in a wide range of important high-end products including laminated windscreens, toughened glass, adhesives, coatings, films, textiles and carbon fibre.
Mark Kenrick, CEO of Saltend Chemical Park owner the px group, was emphatic about the benefits: “The INEOS investment in a new VAM plant is tremendous news for the Saltend Chemical Park, the Humber region and px group. It marks a milestone in our drive to unlock the full potential of our site where we have the space, infrastructure and desire to support the growth plans of existing clients and new operators alike.”