A cornerstone of UK energy infrastructure
Officially opened by Her Majesty Queen Elizabeth II on 3 November 1975, the Forties Pipeline transformed the UK’s energy landscape. It took Britain from being almost entirely dependent on imported oil to becoming self-sufficient, fuelling homes, transport, and industry for generations.
Since then, the FPS has safely transported 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 the feedstocks for fuels, plastics, and essential materials that underpin modern life.
Today, FPS remains one of Britain’s most strategically important energy assets. It is designated as Critical National Infrastructure, supporting tens of thousands of jobs across Scotland and the wider UK, and providing the lifeblood for domestic manufacturing and historically, refining at Grangemouth.
INEOS, which acquired the system in 2017, has invested more than £500 million to modernise, secure, and extend its life well into the 2040s and beyond. The company says this investment ensures the UK retains a strong and resilient energy network, capable of serving the economy for decades to come.
Energy policy frustration
However, INEOS has expressed concern that current Government energy policy is undermining these efforts. The company has described the policy as “ruinous”, arguing that what it calls “unfathomable” tax rates, over-regulation and political hostility to oil and gas are reducing investment, diminishing revenues to the Treasury, and threatening the UK’s energy independence.
Under the Energy Profits Levy (EPL), tax rates on energy have climbed to 78%. INEOS claims this has driven investments to an all-time low and left the UK increasingly reliant on expensive imports.
INEOS argues that British politicians have placed their faith in global markets, believing that imports will always be available. However, the company warns that this approach means fewer taxes from domestic production flowing into the Exchequer and an increasing share of consumer energy payments supporting overseas economies instead.
The value of independence
Andrew Gardner, CEO INEOS FPS said: “The Forties Pipeline is a national treasure. For fifty years it has quietly done its job, safely, reliably, and efficiently, carrying the oil and gas that keeps the UK moving.”
He continued: “We should never underestimate the value of home-grown energy. North Sea oil and gas have created enormous prosperity for Britain, and they will remain essential long beyond 2050. Even as we transition to cleaner forms of energy, we will still need reliable domestic supply to power industry, transport, and homes.
“The Forties Pipeline has served this country for half a century, and with continued investment and good policy, it will continue to do so for generations to come.”
INEOS maintains that continued investment and supportive policy will be key to sustain the benefits of domestic production and ensuring the FPS can continue to support UK energy security for generations to come.
Image provided by INEOS