INEOS correspondence with First Minister: FOI release

Information request and response under the Freedom of Information (Scotland) Act 2002

FOI reference: FOI/19/00861  
Date received:  22/03/2019
Date responded: 18/04/2019
Information requested:
Any correspondence – mail or email – involving officials from chemicals company INEOS and the office of the first minister of Scotland from 01/10/18 and 28/02/19.
I enclose a copy of all of the information you requested in the Annex to this letter
From: Redacted under FOISA 2002, section 38(1)(b)

Sent: 27 February 2019 13:52
To: First Minister <>
Subject: INEOS to invest £1 billion in UK

The note below is sent on behalf of Tom Crotty

Dear First Minister,

I am delighted that today INEOS has announced a further £1 billion investment in UK manufacturing which is to be focused on multiple projects across the UK. I’m also thrilled to confirm that most of this investment will take place in Scotland, in the Forties Pipeline System and in Grangemouth.

This is one of our biggest ever investment packages and again demonstrates our commitment to British manufacturing. Today’s news further underlines our continued confidence in our business in Scotland and across the UK. These investments will ensure that our manufacturing assets continue to be world class for many years to come. Importantly, we also expect these investments to help secure 7000 on site jobs and 35,000 indirect jobs across the UK.

The biggest investment will be £500 million to rejuvenate the Forties Pipeline System (FPS). The Forties pipeline, opened in 1975, is a strategic asset for the UK. It can transport up to 600,000 barrels of North Sea oil onshore for refining every day. Its significance is reflected in the fact that this pipeline transports 40% of the UK’s Oil & Gas to the mainland. With increased concerns about the security of UK energy supply, it’s important to say that we plan to make these changes without disruption to the pipeline.

INEOS’ investment will extend the life of the pipeline by at least twenty years and meet the needs of North Sea oil and gas producers into the 2040s. We only acquired the FPS in 2017 and intend to overhaul the reliability of the 500km pipeline system, including modernising the environmental systems and implementing the latest technology.

We are also investing £350 million in a new state of the art, energy efficient power plant at our Grangemouth site. As you will know, Grangemouth is home to Scotland’s only crude oil refinery which supplies over 80% of all the motor fuels to the Scottish market.

This new energy plant will provide steam and power to INEOS’ businesses. We think that it’s important that it will also have the capacity to supply additional businesses that may decide to locate to the Grangemouth site in the future. This investment is good for both the environment and business because the reduced energy costs will also improve the competitiveness of the site in the global petrochemical, oil and fuels markets.

At an uncertain moment for the country this is a huge vote of confidence by INEOS in a bright and long term future for Scottish and UK manufacturing. We are delighted to continue Grangemouth’s renaissance as a world class petrochemicals facility and to extend the life of the North Sea for many years.

Yours sincerely,

Tom Crotty

Director of Public Affairs & Communication

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