UK Gas Prices Force Ineos to Idle Three Chemical Plants Amid Global Competition

INEOS has been forced to idle three of its chemical plants in the UK due to skyrocketing natural gas prices in Europe. The move will impact production of critical materials, including pharmaceuticals, clothing, cosmetics, detergents, construction materials, and military explosives.

The three plants, located in Hull, are Europe's last remaining world-scale Acetyls units. With the current high gas prices, INEOS cannot compete with global markets, where gas costs significantly less.

Ineos chairman Sir Jim Ratcliffe stated that 'I'm sure people will find it hard to believe that we are being forced to mothball some of the most efficient plants in Europe but with gas prices now 12 times the level in the US and 8 times that of China, we just cannot compete.'

The current UK wholesale gas price is above $23 per million British thermal units (MMBtu), compared to the U.S. benchmark Henry Hub price of about $2.83 per MMBtu.