INEOS will invest £1 billion in multiple projects in the U.K., the British petrochemicals manufacturer announced Wednesday.
The company will make the biggest investment in the Forties Pipeline System (FPS), allocating £500 million to transform and extend the life of the North Sea's main oil and gas artery by at least twenty years into the 2040s.
According to INEOS' statement, opened in 1975, FPS is a strategic U.K. asset that can transport up to 600,000 barrels of North Sea oil onshore for refining every day. The pipeline transports 40 percent of the U.K.’s oil and gas to the mainland.
INEOS intends to overhaul the efficiency of the 500-kilometer-long pipeline system, including modernizing the environmental systems while implementing the latest technology into its systems.
"This investment will rejuvenate FPS, delivering a long-term asset that meets the needs of North Sea oil and gas producers," it said.
The second investment is in the Grangemouth site, which is one of INEOS' largest manufacturing sites by product volume. It is home to Scotland's only crude oil refinery and produces the bulk of fuels used in Scotland, according to the company's website.
"The £350 million investment will allow for the development of a new steam and power plant, delivering significantly improved energy efficiency and long-term reliability," INEOS said.
In addition, the company will invest £150 million to build a 300,000-tonnes-per-year Vinyl Acetate Monomer (VAM) plant in Hull, "bringing production of this important material back to the U.K."
VAM is a key component in a wide range of high-end products including laminated windscreens, toughened glass, adhesives, coatings, films, textiles and carbon fiber.
Commenting on the investment package, Jim Ratcliffe, INEOS founder and chairman, said INEOS is a supporter of British manufacturing, adding that this £1 billion investment underlines the company’s confidence in its business in the U.K.
"These investments will ensure that our U.K. assets continue to be world class for many years to come," he concluded.
By Hale Turkes