Ineos Halts Production Amid Soaring Gas Costs in Hull

Ineos, a chemicals conglomerate controlled by billionaire Jim Ratcliffe, is halting production at three plants in Hull due to soaring gas prices. The company claims it cannot compete with rivals in the US and China, where energy costs are significantly lower.

The two facilities that have already paused output will be joined by a third within days, affecting approximately 240 direct employees. However, Ineos warns that up to 4,000 jobs could ultimately be lost when supply-chain workers are included.

UK gas prices have nearly doubled since July, driven in part by disruption to oil and gas supplies through the Strait of Hormuz following the US-Israel war in Iran. Wholesale natural gas prices in the UK are now twelve times higher than in the US and eight times more expensive than Chinese chemical producers' coal-based processes.

Ratcliffe described the current situation as 'economic vandalism on an industrial scale,' criticizing the government's approach to energy policy. Ineos is attempting to secure liquefied natural gas directly from the US at lower prices, a process that could take up to a year. The company is also pressing governments in the UK and the European Union for tariff protections against Chinese imports.