INEOS will invest £ 1 billion in several projects in the UK to ensure that its British assets remain world class over a generation.
The biggest investment being announced is in the Forties Pipeline System (FPS). This investment of £ 500 million will transform the asset and extend the pipeline’s life into the 2040s.
INEOS aims to rework the reliability of the 500 km pipeline system, including the modernization of environmental systems and the implementation of the latest technology. This investment will rejuvenate FPS and provide a long – term asset that meets the needs of oil and gas producers in the North Sea.
FPS is a UK – strategic asset which was opened in 1975 that can carry up to 600,000 barrels/day of North Sea onshore oil for refining.
Andrew Gardner, INEOS FPS CEO, says, “North Sea oil and gas producers are telling us that they want to be in the North Sea well into the 2040s so we are making this commitment to be there with them. Following acquisition of FPS in 2017 we are now embarking on a period of investment that will guarantee that the system can support them for decades to come.”
The second investment by INEOS is another installment in Grangemouth site’s reformation. The investment of £ 350 million will enable the development of a new steam and power plant, which will significantly improve energy efficiency and reliability over the long term.
obias Hannemann, CEO O&P UK says: “This investment forms part of our wider plans to secure a bright future for manufacturing at Grangemouth and will continue its renaissance as a world class petrochemicals site while supporting the refinery, FPS and wider UK economy.”
INEOS will also invest £ 150 million in Hull to build a new Vinyl Acetate Monomer (VAM) facility. This will bring back a major raw material production to the UK. The site is expected to have a capacity of 300,000 tons per year. Vinyl acetate monomer (VAM) is a key intermediate used in the making of a number of polymers and resins for adhesives, coatings, paints, films, textiles and other end-products.
Graham Beesley CEO of INEOS Oxide said: “This is an exciting time for INEOS and great news for manufacturing in the region. We are proud to be bringing production of this important material back to the UK. This will not only strengthen UK manufacturing but boost exports from the UK to Europe and the rest of the world.”
Sir Jim Ratcliffe concludes, “At an uncertain moment for the country, INEOS has confidence in its businesses and is committed to continue investing in manufacturing and high skilled jobs in the UK.”