The Press and Journal (Inverness, Highlands, and Islands)
Trade union warns of one man’s power to halt UK
Oil and gas: Unite flags up danger of sale of Forties pipeline to Ineos
A trade union has warned that a potential sale of one of the most important pieces of oil infrastructure in the North Sea to chemical giant Ineos would give onemanthepowerto bring the UK to a standstill.
Unite said yesterday it would be dangerous to hand over the vital Forties pipeline to Ineos, controlled by billionaire Jim Ratcliffe, as the Swiss firm already owns Grangemouth refinery.
The warning came after current pipeline owner BP and Ineos confirmed talks were taking place over the sale of Forties, which transports 450,000 barrels a day – about 40% of the UK’s total oil production.
Unite Scottish secretary Pat Rafferty said: “The Forties pipeline system carries a massive amount of the UK’s oil. Grangemouth is theoneof the country’smajor refineries.
“Both of these pieces of vital national infrastructure could soon be effectively in the hands of one man. That is an incredible amount of power.
“We need a national debate now. Do our politicians believe in an economywhere power is widely held and used for the benefit of us all, or are they happy with power in the hands of a tiny minority whose biggest concern is theirownpersonal benefit? Is it right, or sensible to give the power to turn off the taps – and bring the entire country to a standstill – to one private company, without any democratic involvement or oversight?”
Mr Rafferty said he also had serious concerns about the welfare of employees who would have to transfer to Ineos.
Unite was embroiled in twomajordisputeswithIneos over the treatment of workers at Grangemouth in 2008 and 2013.
During the second dispute, Ineos threatened to close the facility.
Mr Rafferty said: “Our members at BP will have major concerns about the possibility of becomingemployees of Ineos, a company with a clear history of attacking our members’ pensions, as well as their terms and conditions, in order to maximise profit.
“If a sale does go ahead, we will fight to protect our members in every way we can, and Ineos should work with us to allay their fears.”
Ineos did not respond to a request for a response to Mr Rafferty’s comments.
BP and Ineos both declined to comment on the likely value of the potential sale of Forties.
The pipeline transports oil to an onshore terminal at Cruden Bay, from where it is pumped south to the Kinneil facilities at Grangemouth. Ineos began building a North Sea oil and gas portfolio in 2015, buying 12 fields fromGermany-based Dea.
It went on to acquire a 25% interest in the Clipper South field from Fairfield Energy and secure a £220million reserve-based lending facility to fund its entry into the North Sea.
The company is also the focus of speculation linking it with Dong Energy’s exploration and production unit in the North Sea.
BP is selling assets to help pay for the 2010 oil spill in the US Gulf ofMexico. It also needs to bring down debt and maintain dividends as oil prices continue to trade near $50 a barrel.