Ineos said on Wednesday it will invest £1 billion in the UK, including £500 million in the Forties Pipeline System to prolong the life of the North Sea’s main oil and gas artery into the 2040s.

Ineos will also invest £350 million at Grangemouth in a new energy plant.

And the firm will invest £150 million in Hull to build a 300,000 tonne per year VAM (Vinyl Acetate Monomer) plant.

Ineos chairman Jim Ratcliffe said: “Ineos is a supporter of British manufacturing and this £1 billion investment underlines our confidence in our business in the UK.

“These investments will ensure that our UK assets continue to be world class for many years to come.” 

Ineos said it intends to overhaul the reliability of the 500km Forties Pipeline System (FPS), including modernising the environmental systems and implementing the latest technology into its systems.

“Opened in 1975, FPS is a strategic UK asset that can transport up to 600,000 barrels of North Sea oil onshore for refining every day.

“The pipeline transports 40% of the UK’s oil and gas to the mainland.”

Ineos FPS CEO Andrew Gardner said: “North Sea oil and gas producers are telling us that they want to be in the North Sea well into the 2040s so we are making this commitment to be there with them.

“Following acquisition of FPS in 2017 we are now embarking on a period of investment that will guarantee that the system can support them for decades to come.”

The £350 million investment at Grangemouth will allow for the development of a new steam and power plant, delivering improved energy efficiency and long-term reliability.

Ratcliffe added: “At an uncertain moment for the country, Ineos has confidence in its businesses and is committed to continue investing in manufacturing and high skilled jobs in the UK.”