‘High gas prices’ force Ineos to idle three UK plants

British billionaire Jim Ratcliffe announced on Tuesday that he is shutting down three UK factories of his petrochemical company Ineos due to exorbitant European gas prices. The northeastern port city of Hull houses these plants, which provide employment for nearly 4,000 highly skilled workers. Ratcliffe expressed that the current gas prices are 12 times higher in Europe compared to the United States and eight times higher than in China.

Consequently, the company finds itself unable to compete in the market due to these astronomical costs. The three plants in question are Europe's last remaining world-scale acetyls units, which produce essential raw materials for various products such as pharmaceuticals, clothing, cosmetics, construction materials, and military explosives.

The surge in gas prices has been attributed to the ongoing conflict in the Middle East, which erupted in February and caused the price to more than double. As winter approaches and fuel demand increases, the gas price is expected to rise further, even though it remains significantly lower than the record €300 per megawatt-hour set in 2022 due to Russia's invasion of Ukraine.

In addition to the financial impact, the high gas prices are exacerbating the environmental burden, as replacement products sourced from the USA emit double the carbon, while those from China emit eight times more.

European regulators are urged to recognize the adverse effects of high energy costs combined with unsustainable carbon taxes on the European manufacturing base, as stated by Ratcliffe. A UK government spokesperson acknowledged the significance of Ineos's decision for workers and their families, but emphasized that the government has taken substantial measures to support the chemicals industry, including a £350 million investment for strategically important chemical producers.

Jim Ratcliffe, a vocal advocate for Brexit and controversial for his views on immigration, previously warned of the dangers of not investing in North Sea oil and gas, describing Britain as "on the slide." With a net worth that places him among the wealthiest individuals in the country, Ratcliffe is a tax resident in Monaco and holds a significant stake in Manchester United football club.