INEOS has announced plans to give 6% of its shale gas revenues to homeowners, landowners and communities who live above its shale gas operations.
INEOS anticipates being a major player in the shale gas industry and believes it will give away over £2.5 billion over the life of its business.
Shale gas profits
The sharing of shale gas profits is commonplace in the USA and INEOS believes this will encourage communities to support shale gas production in their neighbourhoods.
Jim Ratcliffe, INEOS Chairman commented: “We think this is a game changer for Britain. Giving 6% of the revenues to those living above our shale gas operations will give them a real stake in the success of the venture and encourage the development of the whole shale gas industry”.
- Typically, those living in a shale gas community (approximately 100 km2) would benefit from the output of 200 wells and split £375 million between them.
- Home and landowners directly above the wells would share £250 million.
- The rest of an INEOS shale gas community would share £125 million between them, making a substantial contribution towards new schools, parks, community centres and even hospitals.
- Over the lifetime of a single well, home and land owners would get over £1.3 million and the community £600,000.
Ratcliffe added: “Giving 6% of revenues to those directly above shale gas wells means the rewards are fairly shared by everyone. It’s what they do in the USA and we think it is right to do this here. It democratises the shale gas revolution”.
Imports from US
INEOS plans to spend hundreds of millions of pounds to import large quantities of shale gas from the US to its Grangemouth facility in Scotland, a necessity as the availability of gas in the North Sea has declined.
"It is extremely important that people know that shale gas can be extracted, transported and processed safely and in an environmentally responsible way. INEOS is a company used to dealing with complex petrochemical processes and we have now hired some of the world’s leading shale gas experts to further strengthen our sub-surface team. With INEOS, people can be confident that they will not only get a fair share of the rewards but that everything will be done to the highest possible standards,” Ratcliffe concluded.
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/hydraulic-fracturing/20112014/ineos-to-give-away-shale-gas-profits-109/