With this investment, Ineos is expected to become one of the largest shale gas players in the UK.
The company, which recently acquired 729 sq miles of fracking exploration licences in Scotland, operates a refinery and petrochemicals facility at Grangemouth in Stirlingshire.
The company believes that shales gas will change the dynamics of the Grangemouth facility, which is facing losses, reports BBC.
Ineos is constructing a shale gas import facility in order to provide raw material for its petrochemicals plant at Grangemouth.
Even as it builds Europe’s largest import facility, it wants to generate shale gas from its domestic market.
In 2013, Ineos threatened to shut its Grangemouth facility, which led to a bitter fight with approximately 1,500 employees, reports The Guardian.
Ineos, earlier this year, said that it would hand over up to £2.5bn of revenues from shale gas to communities living close to its wells.
In August, it acquired 51% interest in the shale part of the PEDL 133 licence area covering 127 square miles in the Midland Valley.This was soon followed by 80% stake acquisition in the neighboring 154 square mile PEDL 162 block in October.
Although shale gas is considered to be an important source for energy, it has raised concerns over environmental damage.
Shale gas is extracted through a method, called as fracking, or hydraulic fracturing. In this method, water and chemicals are pumped at high pressure into shale rock.
Image: Grangemouth petrochemical plant. Photo: Courtesy of Paul McIlroy.
