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Ineos Reaches Into North Sea With Shetland Gas Field Acquisition

Petrochemicals leader Ineos has furthered its reach into the North Sea by acquiring a majority stake in gas fields north of the Shetland Isles from Siccar Point Energy.

City AM reported that this is the first non-production and transportation purchase Ineos has made in the North Sea, so the deal is considered decisive.

The site is estimated to house reserved gas as much as 5 trillion cubic feet and means Ineos now has exploration licenses in four deep water oil and gas fields.

These fields are all in the so-called Lyon cluster and Ineos believes the cluster has between 3 and 5 trillion cubic feet of gas in place.

"Ineos intends to become a significant player in this area," said Ineos chief executive Geir Tuft. "This deal confirms our aim to take a leading role to develop the Northern Gas Fields using the significant infrastructure investments already made west of Shetland.”

Demand for North Sea gas and the technologies that utilise it is set to rise, as global demand for petrol is due to peak by 2030.

Euractiv reported that Wood Mackenzie predicts the rise and rise of electric and hybrid vehicles will play a significant role in the decline in demand for petrol.

At present, some 96 million barrels of oil are consumed daily around the world - and 60 million of these are used to fuel various forms of transportation.

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