Ineos considers UK shale production
16 Dec 2013
Chemicals firm Ineos is considering plans to begin shale production in the UK.
The company is currently rushing through plans to build an LNG terminal at its Grangemouth petrochemical complex to import shale gas from the US.
A spokesman told Process Engineering that Ineos was also considering a move into shale production in the UK.
“Ineos is currently having a look at what part it can play in the UK shale production market,” said the spokesman.
“The company definitely has UK production on its agenda.”
The spokesman’s comments followed a BBC interview with Ineos chairman Jim Ratcliffe in which he revealed the shale production plans, and also heavily criticised the cost of energy in the UK.
The state of European energy markets seriously threatens the ability of energy intensive manufacturing companies to compete on the world stage
Tata Chemicals Europe managing director Martin Ashcroft
In particular Ratcliffe criticised the level of price guarantee handed to EDF for its Hinkley Point C nuclear power station.
His comments follow similar criticisms from the Chemicals Industries Association (CIA), which cites energy costs as the biggest single barrier to industry plans to achieve 50% growth by 2030.
The high cost of energy has even forced some UK chemical plants to shut down, with Tata Chemicals Europe (TCE) earlier this month announcing the closure of its Winnington soda ash and calcium chloride plants in Cheshire and a loss of 220 jobs.
“The energy challenge that TCE has faced is an example of how the state of European energy markets seriously threatens the ability of energy intensive manufacturing companies to compete on the world stage,” said TCE managing director Martin Ashcroft when announcing the closure on December 9th.
Ashcroft added that the closure of Winnington in Northwich would secure the future of TCE’s two other sites in Cheshire – another soda ash plant in Northwich and a sodium bicarbonate manufacturing facility in Middlewich.
“There is real regret that TCE will have to bring to an end a long history of soda ash production at the Winnington site, but energy costs have overwhelmed the viability of these plants,” said Ashcroft.
“Restructuring the company will provide a sustainable presence in Northwich.”
