- INEOS invested over £500 million since 2017 to modernize the Forties Pipeline System.
- The Forties Pipeline has transported over 9.6 billion barrels of oil and gas liquids.
- The pipeline is expected to operate well into the 2040s.
- Current UK energy policies include a 78% tax rate, deterring North Sea investment.
Forties Pipeline System Overview
The Forties Pipeline System (FPS) has been a cornerstone of the UK's energy infrastructure for 50 years, transporting over 9.6 billion barrels of oil and gas liquids from more than 80 North Sea fields to the Kinneil Terminal at Grangemouth. At its peak, it carried around 40% of all UK oil production, providing essential feedstocks for fuels, plastics, and other materials.
Investment and Modernization
Since acquiring the system in 2017, INEOS has invested more than £500 million to modernize and extend the pipeline's life well into the 2040s. This investment aims to secure the pipeline as a critical piece of national infrastructure, supporting tens of thousands of jobs across Scotland and the wider UK.
Challenges from UK Energy Policies
INEOS warns that current UK energy policies, including a 78% tax rate under the Energy Profits Levy (EPL), are deterring investment in the North Sea. These policies are seen as undermining the UK's energy independence and increasing reliance on expensive imports. The company argues that an urgent change in government policy is needed to maintain a strong and resilient energy network.
Economic Impact
Over the last 50 years, the UK's North Sea oil and gas industry has contributed about half a trillion pounds in taxes to the UK Treasury. However, the current tax policy is perceived as self-harming, with the potential to reduce future tax revenues and increase the outflow of funds to support rival economies.
