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| Shale gas: Ineos to invest £640m in UK exploration | Shale gas: Ineos to invest £640m in UK exploration |
| (35 minutes later) | |
| Chemicals giant Ineos is to announce plans to invest up to $1bn (£640m) in shale gas exploration and production in the UK, the BBC understands. | Chemicals giant Ineos is to announce plans to invest up to $1bn (£640m) in shale gas exploration and production in the UK, the BBC understands. |
| The company plans to use the gas as a raw material for its chemicals plants, including Grangemouth in Stirlingshire. | The company plans to use the gas as a raw material for its chemicals plants, including Grangemouth in Stirlingshire. |
| Grangemouth is currently running at a loss but Ineos believes shale gas will transform the economics of the plant. | Grangemouth is currently running at a loss but Ineos believes shale gas will transform the economics of the plant. |
| Shale gas extraction is promoted as an important potential energy source but has prompted environmental concerns. | Shale gas extraction is promoted as an important potential energy source but has prompted environmental concerns. |
| Exploration rights | Exploration rights |
| Shale gas is extracted through a technique known as fracking, or hydraulic fracturing, in which water and chemicals are pumped into shale rock at high pressure. | Shale gas is extracted through a technique known as fracking, or hydraulic fracturing, in which water and chemicals are pumped into shale rock at high pressure. |
| Numerous anti-fracking groups have formed and protests have been staged at several sites over fears of earthquakes, water pollution and environmental damage. | Numerous anti-fracking groups have formed and protests have been staged at several sites over fears of earthquakes, water pollution and environmental damage. |
| Ineos is currently building Europe's largest shale gas import facility to feed its petrochemicals plant at Grangemouth - but it wants to produce home grown shale gas as well. | Ineos is currently building Europe's largest shale gas import facility to feed its petrochemicals plant at Grangemouth - but it wants to produce home grown shale gas as well. |
| In recent months it has been buying up rights to explore across hundreds of square miles of the Midland Valley around the Stirlingshire site. | In recent months it has been buying up rights to explore across hundreds of square miles of the Midland Valley around the Stirlingshire site. |
| Ineos is also thought to have applied for further licences as part of the government's ongoing onshore licensing round. | Ineos is also thought to have applied for further licences as part of the government's ongoing onshore licensing round. |
| The company is expected to outline plans on Thursday to invest hundreds of millions pounds in UK exploration and production. | |
| BBC industry correspondent John Moylan says the move will be seen as a significant vote of confidence in the sector, and will position Ineos as one of the major players in the emerging industry. | BBC industry correspondent John Moylan says the move will be seen as a significant vote of confidence in the sector, and will position Ineos as one of the major players in the emerging industry. |
| But, he adds, it will also put Ineos in the sights of protesters who believe shale gas and fracking are dangerous and harmful to the environment. | But, he adds, it will also put Ineos in the sights of protesters who believe shale gas and fracking are dangerous and harmful to the environment. |
| 'Transparent bribe' | 'Transparent bribe' |
| Earlier this year, Ineos announced plans to hand over up to £2.5bn of shale gas revenues to communities close to its wells. | Earlier this year, Ineos announced plans to hand over up to £2.5bn of shale gas revenues to communities close to its wells. |
| The company has bought the licence for shale gas exploration and development across a 329sq km area around its Grangemouth power plant. | The company has bought the licence for shale gas exploration and development across a 329sq km area around its Grangemouth power plant. |
| It will give away 6% of revenues to local homeowners and landowners. | It will give away 6% of revenues to local homeowners and landowners. |
| However, Friends of the Earth Scotland criticised the move as "a transparent attempt to bribe communities". | However, Friends of the Earth Scotland criticised the move as "a transparent attempt to bribe communities". |
| The British Geological Survey has estimated there are "modest" shale gas and oil resources in the area. | The British Geological Survey has estimated there are "modest" shale gas and oil resources in the area. |
| Fracking is used extensively in the US where it has revolutionised the energy industry. | Fracking is used extensively in the US where it has revolutionised the energy industry. |
| The Scottish government has called for devolved powers on fracking after the UK government decided to press ahead with plans to let companies drill at depths of 300m below private land without consent. | The Scottish government has called for devolved powers on fracking after the UK government decided to press ahead with plans to let companies drill at depths of 300m below private land without consent. |