Ineos suspends production at key UK plants: comment
The facilities produce raw materials used to make pharmaceuticals, clothing, cosmetics, detergents, construction materials and military explosives in the UK and Europe.
By Jess Ralston
info@eciu.netShare
Last updated:
Commenting on reports that Ineos is pausing production at its three plants in Hull, blaming high UK gas prices [1] Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit (ECIU):
"Back-to-back energy crises are evidence that gas prices will always be volatile because they are set by international markets dictated by conflicts thousands of miles away, not by the amount of gas coming from a handful of fields in UK waters. Households and businesses have learned this the hard way over the past few years, as actors like Putin and Trump have driven up bills, with lasting relief nowhere in sight.
"China and the US are completely different markets, with the US being essentially self-sufficient in gas, compared to production in the North Sea declining because the basin is mature and the easiest reserves have already been extracted. New drilling may marginally slow the decline, but won't reverse it, and won't shield the UK from volatile fossil fuel markets.
"If the goal is greater energy security and more stable bills, then the obvious solution is reducing our exposure to gas altogether where we can through renewables and electrification. That can keep gas available for industries that really need it, where there is no alternative like there is in heat pumps for heating, or electric vehicles for transport."