U.K.-based global petrochemicals company, INEOS, announced it will invest $1 billion in shale gas exploration and appraisal in the U.K. on Thursday.
INEOS which specializes in petrochemicals and oil products, said that it aims to become the biggest player in the U.K. shale industry, the company stated in a press release.
Currently the company has applied for petroleum exploration and development licenses through entering bids issued by the Department of Energy & Climate Change in Scotland and the North England. The company said they will reach their aim if they win all the bids.
The U.K. faces public opposition against “fracking,” a method used in the extraction of shale gas through fracturing the source rock by high-pressured water and a chemical mix which is said to have negative effects on the local environment.
Although INEOS claims that there is a huge potential in shale resources, evaluation on the U.K.’s potential recoverable shale gas reserves are still far from accurate. According to the British Geological survey’s estimations, there may be potential of some 1.5 trillion cubic meters of shale gas in the country whereas the U.S. Energy Information Administration estimates the number to be 7.4 trillion cubic meters.
INEOS has two shale gas licenses in Scotland covering an area of 120 thousand acres. The company also announced that they will grant six percent of the shale gas revenues to local communities, four percent will be given to land owners above the well and the rest to the wider local community.
By Nihan Cabbaroglu