Ineos shells out £30 million to snap up all IGas licences

Gary Haywood
Gary Haywood

INEOS has acquired full ownership of the shale gas exploration licence around Grangemouth.

The company this week reached an agreement with IGas to acquire a further foothold in fracking exploration.

This deal will give INEOS access to almost a quarter of a million acres of potential shale gas reserves.

INEOS will pay IGas £30 million and has agreed to fund a two-phase work programme of up to £138 million to appraise and develop the sites.

Gary Haywood, CEO of INEOS Upstream said: “We believe shale gas could revolutionise UK manufacturing.

“INEOS has the resources to make it happen, the skills to extract the gas safely and the vision to realise that communities must share in the rewards for it to be successful.

“Our scale, asset position across the UK, US shale gas expertise and our expertise in managing oil and gas facilities will be a great match with IGas’s existing capability.”

However, Friends of the Earth Scotland head of campaigns Mary Church viewed the purchase somewhat differently.

She said: “The industry’s game of musical chairs with fracking licenses will have little effect in Scotland where the industry is caught up in the recent moratorium.

“INEOS will be unable to exploit shale reserves near Grangemouth – or anywhere else in Scotland for that matter – any time soon, regardless of what it buys.”