UK shale gas setbacks due to election, vital for economy – INEOS
Jonathan Lopez
10-Mar-2015
Interview article by Jonathan
Lopez
LONDON
(ICIS)–Recent setbacks for the shale gas industry in the UK
are likely to be linked to the general election, a director
at the Switzerland-headquartered chemical major INEOS said on
Tuesday.
The company is confident that a shale gas sector will
eventually develop in the country, and would guarantee
cheaper energy for the country, according to INEOS director
Tom Crotty.
Crotty said the uncertain situation for the shale gas
industry at present had been one of the factors behind
the company getting involved in advocating for the safety and
potential economic returns of the sector.
He was speaking shortly after the company
announced the acquisition yet more several
shale gas licences in the UK.
Just months before a forecast-to-be tight
general election, politicians have not wanted to be in the
spotlight awarding licences for a practice to which the
public opinion is opposed to, according to most polls, an
opposition which rises in areas where the wells could be
located.
The INEOS director also said he
“suspected it [the UK’s May general election] has a lot to
do” with recent political setbacks the industry has had to
face, such the moratorium imposed by the Scottish parliament or the
refusal of energy firm Cuadrilla’s application to explore for shale gas in
northern England.
“The moratorium in Scotland has no
timescale,” Crotty said. “The Government wants to
see proper consultation taking place; we are supportive of
that and we are launching our Scottish consultation programme
next week, to try and persuade people that this technology is
absolutely safe and will have big economic benefits,” he
added.
The company’s main petrochemicals site in
the UK, located in Grangemouth, Scotland, could greatly
benefit from local shale gas extraction but its feedstock is
guaranteed for the next two decades thanks to deals signed in
Norway and in the US, said Crotty.
“The site is running well. Construction of the
[ethane] tank is going well, and we’ll actually be bringing
the first gas from Norway in the third quarter, and from the
US in mid-2016. At that point,
Grangemouth will be in a strong position ,” said
Crotty.
The public consultation INEOS will hold
in Scotland over the next week will be the test for the
company’s proposal to share the benefits of shale gas
extraction. Crotty said some members of the UK parliament
have shown warmed to the concept of shale gas
exploration thanks to the idea.
“The current situation [of shale gas]
needs companies like ours to explain people the economic
imperative of shale gas, that is our challenge now. The UK
has got a major energy issue and unless it faces to that and
does something about it, the economy is going to suffer,
especially the chemical industry,” said Crotty.
Moreover, he said that despite falling
gas prices, Europe values “remain ridiculously high” compared
to the US, something local shale gas extraction would
alleviate to an extent.
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