Ineos confirms Forties pipeline to be back on line in new year

Ineos said its Forties North Sea gas pipeline should progressively flow back to normal rates early in the new year.

The privately held petrochemicals group, which bought the key UK pipeline just seven weeks ago, was forced on 11 December to make a rare unscheduled shutdown of the pipeline system after a widening hairline crack was discovered on an onshore section in Aberdeenshire.

The 169km pipeline system transports about 450,000 barrels of oil a day, around 40% of UK oil production of Britain's oil from the North Sea.

Crude prices were squeezed higher after the pipeline was shut, helping contribute to the two-and-a-half-year high close to $65 for Brent this month. Prices have come off since then and on Thursday were down 0.3% to $64.34.

Oil giant BP sold the pipeline system business, including the offshore and onshore pipelines and other associated interests, to Ineos for £200m, half in cash on completion of the deal and the rest as an earn-out arrangement over seven years.