Ineos Sees Grim Prospects for Grangemouth Without Domestic Shale Industry

Importing LNG from the US is not a long-term solution for Ineos’ plant in Grangemouth, the Upstream chairman Gary Haywood said on Tuesday, adding that a UK’s shale industry would be able to produce locally at better economic conditions within three to five years.

“If you look forward five years, it is possible we could be producing gas from that point onwards” Haywood said, as reported by BBC, and other British newspaper.

Earlier this year, Ineos said the moratorium on fracking advocated by the Committee would backlash on the national economy. In that occasion Ineos Director, Tom Crotty, said that UK manufacturing would start to collapse without shale gas. 

The Scottish government blocked planned fracking operations, pending further inquiries. 

Switzerland-based Ineos, which bought licences for exploration across over 1,000 sq km in central Scotland, committed to give local communities 6% of the entire revenuers from its wells.  

The British offshore industry also voiced concerns about the current and the coming year, saying that the subsea sector will suffer because of CAPEX cuts and low crude price.