Ineos acquires license to join fracking drive
INEOS has joined the dash to frack with the acquisition of a 51 per cent share of the Petroleum Exploration and Development Licence (PEDL), as the company looks to take part in the nascent shale gas industry being promoted in the UK.
The petrochemical company, which is the fourth largest in the world, announced its move into shale gas exploration through its new oil and gas exploration and production business INEOS Upstream, which bought the 51 per cent share of the shale PEDL from BG Group.
The remaining 49 per cent of the shale PEDL is owned by exploration company Dart Energy, which is being taken over by oil and gas explorer IGas, following a deal previously announced in May.
The PEDL licence bought by INEOS covers more than 120 square miles of the Midland Valley in Scotland, and includes the Grangemouth refining facility and the area surrounding it.
Gary Haywood, chief executive of INEOS Upstream, said: “This is a logical next step for INEOS and we are very excited about it. With our large UK asset base, existing operating capabilities and exemplary safety and environmental record, we are well placed to become a major player in the UK onshore gas production sector”
INEOS is also in the process of carrying out a $600m (£359m) project designed to transport shale gas ethane from the US to its facilities in Scotland and Norway.