Petrochemicals giant INEOS has completed a deal to operate a number of shale gas licences held by Britain’s IGas Energy.

The Swiss company now has a majority stake in IGas’ licences in the Bowland basin in the North West of England.

INEOS is paying IGas a cash sum of £30 million and has also committed to fund a programme of up to £138 million to develop the sites.

Gary Haywood, CEO of INEOS Upstream said: “These are first class assets that have the potential to yield significant quantities of gas in the future. INEOS believes that an indigenous shale gas industry will transform UK manufacturing and that we can extract the gas safely and responsibly.”

Last year INEOS said it would invest up to $1 billion in Britain’s shale gas industry.