Ineos has announced a £500M investment to prolong the life of the UK’s main oil and gas pipeline.
The 500km Forties Oil and Gas Pipeline System (FPS), in Scotland, forms the main artery for gas and oil transportation in the UK, moving 600,000 barrels of oil a day, about 40% of the UK’s production. Ineos purchased the pipeline from BP in April 2017.
The pipeline runs from the Forties oil field, which lies 176km off the coast of Aberdeen, to the terminal at Cruden Bay in Aberdeenshire, Scotland.
The pipeline was shutdown temporarily in 2017 after the discovery of cracks in the pipe, but was repaired and reopened within two weeks.
Ineos FPS chief executive officer Andrew Gardner said the investment will safeguard the pipeline for decades to come. “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.”
In total Ineos has pledged £1bn worth of investment in UK projects, including £350M for a new steam and power plant to support an Ineos chemical plant at Grangemouth, in Scotland.
A further £150M will be spent in Hull to construct a new Vinyl Acetate Monomer (VAM) plant. VAM is a common additive for cement, paints and adhesives.
Ineos founder and chairman Jim Ratcliffe said the investment will ensure the UK maintains word leading assets. “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.”
“This £1 billion investment underlines our confidence in our business in the UK. These investments will ensure that our UK assets continue to be world class for many years to come.”
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