Petrochemicals giant INEOS has announced plans to invest £1 billion in the UK chemical and oil industries.
The company is spending £500 million in the 500km Forties Pipeline System (FPS) to overhaul its reliability, including modernising the environmental systems and implementing the latest technology, as well as extend its life by at least 20 years.
FPS, which was opened in 1975, can transport up to 600,000 barrels of North Sea oil onshore for refining every day.
It transports 40% of the UK’s oil and gas to the mainland.
Andrew Gardner, INEOS FPS CEO said: “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 new plant will provide steam and power to all three INEOS businesses as well as have the capacity to supply additional future businesses on site.
Around £150 million will be spent in Hull for a new Vinyl Acetate Monomer (VAM) plant, a key component in a wide range of products including laminated windscreens, adhesives, coatings, textiles and carbon fibre.
Sir Jim Ratcliffe, INEOS Founder and Chairman added: “INEOS is a supporter of British manufacturing and 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.”