Ineos Drives US Fracked Ethane Trade to Europe
Ineos imports two-thirds of all US ethane exports to fuel European plastic production, sparking legal challenges and environmental criticism.
Analysis by the Center for International Environmental Law reveals that Ineos is the primary driver of the trade in fracked ethane from the United States to Europe. Since 2016, the British petrochemical company has expanded its ethane shipments approximately 7.3-fold, accounting for at least two-thirds of all US ethane exports. The company utilizes this gas for plastic production at facilities in Norway, Scotland, and its proposed Project One plant in Belgium.
While fracking is banned in much of Europe, importing fracked gas remains legal. Critics argue this allows Ineos to avoid accountability for the environmental and health costs incurred by communities in regions such as Washington County, Pennsylvania. In response, Ineos denies driving the US fracking industry, stating that its requirements represent only 3% of US ethane production and that US gas production does not depend on its purchases.
Ineos currently faces legal action from ClientEarth and 14 other NGOs. The case has reached the European Union's highest court to determine if the company must account for scope 3 upstream emissions regarding Project One. Despite these challenges, the UK government has supported the project through a €700 million bank guarantee provided by UK Export Finance.
