Ineos said in a statement over the weekend that it plans to give those living directly above the licence a 4 per cent of its shale gas revenues, while those living in the wider community will receive 2 per cent. It will adopt this approach across any of its UK sites, which could lead to community benefits of up to £2.5 billion, the company said.
The burgeoning shale industry has already committed to offering local communities a 1 per cent stake in project revenue but Ineos said it plans to offer a more lucrative deal which reflects the community benefit seen in US projects.
“Giving 6% of revenues to those directly above shale gas wells means the rewards are fairly shared by everyone. It’s what they do in the USA and we think it is right to do this here,” said Ineos founder and chairman Jim Ratcliffe.
UK energy minister Matthew Hancock welcomed Ineos’ committment as a “vote of confidence” in the government’s plans to develop the UK’s shale potential.
“Ineos recognise the potential of shale gas to transform local communities, create jobs and new economic opportunities; providing a cleaner, greener domestic energy resource,” Hancock said in a separate statement.
Ineos will be taking BG’s 51 per cent in the PEDL 133 licence based to the east of Stirling. The project is wholly operated by Dart Energy and already holds a five year gas supply deal with SSE Energy.