Ineos to mothball three major chemical plants in Hull due to high gas prices

Ineos has announced the mothballing of three major chemical plants in Hull, UK, citing uncompetitive natural gas prices. The facilities, which are among the last remaining world-scale acetyls units in Europe, produce essential raw materials for pharmaceuticals, cosmetics, detergents, construction, and military explosives.

Chairman Sir Jim Ratcliffe stated that UK gas prices are twelve times higher than in the United States and eight times more expensive than the coal-based processes used by competitors in China. He criticized current energy and carbon policies as “economic vandalism on an industrial scale,” arguing that the closures will export jobs to the US and China while increasing global CO2 emissions due to less efficient overseas production.

The suspension of operations affects approximately 245 direct employees, but the company warns that up to 4,000 jobs in the local Humberside economy and supply chain are at risk. Ineos is reportedly seeking to obtain liquefied natural gas (LNG) directly from the US to lower costs, a process that could take up to a year.