'High gas prices' force Ineos to idle three UK plants

British billionaire Jim Ratcliffe said Tuesday he was halting operations at three UK factories belonging to his petrochemical giant Ineos owing to "ridiculously high" European gas prices.

"We are being forced to mothball some of the most efficient plants in Europe, but with gas prices now 12 times the level in the US and eight times that of China, we just cannot compete," Ratcliffe said in a statement.

According to Ineos, the three plants based in the northeastern port of Hull "support almost 4,000 highly skilled jobs".

The plants that are being "idled are Europe's last remaining world scale Acetyls units producing the raw material" for a range of materials including pharmaceuticals, clothing, cosmetics, construction materials and military explosives, it added.

The price of European gas has more than doubled since the Middle East war erupted in February and now hovers around 75 euros ($86) per megawatt-hour (MWh).

But as winter approaches and fuel supply demand increases, the price is likely to rise further, even if it remains way below the record 300 euros per megawatt-hour set in 2022 after Russia's invasion of Ukraine.

The high gas prices were "also massively increasing the environmental burden with replacement products supplied from the USA at double the carbon emissions and from China at eight times the emission level", Ratcliffe said.

"European regulators need to wake up to the fact that the combination of high energy costs and the additional burden of unsustainable carbon taxes are destroying our European manufacturing base," he added.

A UK government spokesperson said Ineos's decision would mark "a concerning time" for workers and their families.

But they insisted the government had "taken bold action to support our chemicals industry including 350 million pounds ($460 million) for strategically important chemicals producers".

Ratcliffe, who supported Brexit and has triggered controversy for his views on immigration, told the BBC last week that failing to invest in North Sea oil and gas was "insanity".

He warned gas storage was so low that Britain could "run out of gas" if there was a cold snap this winter, describing the country as "on the slide".

The 73-year-old, who is one of the country's richest people, is a tax resident in Monaco and owns a large stake in Manchester United football club.