Ineos buys majority shale licence
19 Aug 2014
Chemicals firm to become “major player” in the UK onshore gas production sector.
Ineos has announced intentions to bolster its shale exploration activity with the purchase of a 51% share of the shale section of a joint Petroleum Exploration and Development Licence (PEDL) in the Midland Valley area of Scotland.
The licence covers 329 square kilometres, including the area surrounding the company’s Grangemouth refining and petrochemical complex.
Ineos is well placed to become a major player in the UK onshore gas production sector
Ineos Upstream CEO Gary Haywood
Chief executive officer of Ineos Upstream Gary Haywood said: “We are very pleased to have agreed the purchase of 51% of the shale section of the PEDL 133 licence.”
During July, Ineos received a £230 million loan guarantee from the government to support its plans to build an LNG import terminal and 60,000 cubic metre capacity ethane storage tank in order to use shale gas from the US as a feedstock for its petrochemicals complex.
“Over the last year Ineos Upstream has been drawing together a team of experts in the sector, including a number of leading shale exploration and development specialists from the US,” Haywood said.
Ineos intends to use the shale gas it recovers as both a fuel and a feedstock.
“With our large UK asset base, our existing capabilities in operating oil and gas facilities and our exemplary safety and environmental record, Ineos is well placed to become a major player in the UK onshore gas production sector,” Haywood said.
The remaining 49% of the PEDL licence is owned by exploration company Dart Energy.
