A crucial North Sea pipeline network, which supplies a significant portion of the UK's energy needs, could face closure a decade earlier than planned due to the government's proposed tax changes.

The Forties Pipeline System, connecting over 80 offshore gas and oil fields to the UK mainland, may shut down as early as 2030 if proposed windfall taxes stifle investment.

Ineos acquired the pipelines from BP in 2017 and committed to investing £500 million to ensure the system's operation until the 2040s. However, the government's plans to curtail North Sea capital and investment allowances could force an earlier decommissioning.

Andrew Gardner, the CEO of Ineos Forties Pipeline System, warned that if the government's tax policy prevents companies from offsetting drilling and investment costs, production volumes will decline, leading to a potential closure between 2030 and 2035.

This announcement comes on the heels of Ineos' decision to close its Grangemouth refinery in Scotland, resulting in significant job losses.

Gary Smith, general secretary of the GMB Union, criticized the government's approach to the oil and gas industry, terming it a “hostile position and a fundamentally dishonest,” emphasizing that the sector will remain essential for decades to come. 

 He warned that excessive taxation and restrictions on new exploration could lead to a "cliff-edge" for the industry, with devastating consequences.