Ineos Upstream Acquires Majority Stake in Scotland’s Shale License

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Ineos Upstream Acquires Majority Stake in Scotland’s Shale LicenseEnergy firm Ineos, which operates the Grangemouth site has acquired a majority stake in drilling shale gas exploratory wells in Scotland in a deal potentially valued at millions of pounds.

Ineos acquired 51 percent stake of the shale segment of the Petroleum Exploration and Development Licence (PEDL), potentially increasing the probability that fracking will be employed in Scotland, reported The Scotsman. The license is for 329 square km of Scotland’s Midland Valley, which also comprises the Grangemouth petrochemical and refining complex and the surrounding areas.

Ineos Upstream, the firm’s new oil and gas production and exploration division, has purchased the majority stake from BG Group. The rest of the shale section license belongs to another exploration firm, Dart Energy.

“This is a logical next step for Ineos and we are very excited about it,” said Gary Haywood, the CEO of Ineos Upstream. “We are one of very few businesses that can use Shale Gas as both a fuel and a petrochemical 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.”

Meanwhile, anti-fracking campaigners chained themselves at the main entrance of UK’s Department for Environment, Food and Rural Affairs (Defra). A similar protest was also held at iGas offices, which is Britain’s biggest shale gas firm, which saw two entrances blocked by the activists.

The activists, who are affiliated with the Reclaim the Power in Blackpool, said that the protest was prompted by the redactions applied on a government report that was released last week that revealed the potential effect of shale gas drilling on rural areas. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com