HIGH energy prices are threatening investment in the region's £8bn chemical sector and could result in closures, MPs have warned.

In a parliamentary debate, Hartlepool MP Iain Wright said energy costs for many chemical companies had doubled in the past year, threatening the viability of some of the region's largest companies.

Despite recent investment in the North-East process sector, leading to the creation of more than 1,600 jobs in the past 18 months, further investment and job creation was being threatened by energy costs, he said.

Mr Wright, and fellow Teesside MPs Vera Baird and Dari Taylor, challenged Alun Michael, the Minister for Industry and the Regions, to respond to energy prices, the need for investment in Teesport, and the impact of new European legislation on the chemical industry.

Chemical companies with operations in Teesside, such as Huntsman, Terra, BOC, and Invista, are all struggling with high energy costs.

The recent temporary closure of Terra Nitrogen's ammonia plant, in Billingham, Teesside, could start to affect other companies, Mr Wright said.

Terra said it would not reopen until UK natural gas costs fell, forcing its North-East customers to import ammonia.

Mr Wright told MPs: "That plant employs a large number of people from Hartlepool, who have written to me to express their concern.

"The firm supplied basic raw materials to a large number of other companies in the Tees Valley and elsewhere.

"Those companies now rely on foreign supplies and tell me that if we experience a bad spell of weather, meaning that North sea tankers are unable to supply, a number of Teesside plants will shut down and might not reopen.

"The situation is unsustainable and detrimental to the prospects of development for the process industries on Teesside."

Mr Wright spoke of the importance of the North-East Process Industry Cluster (Nepic), which represents 350 chemical and pharmaceutical companies in the region, in helping to regenerate the North-East after years of decline in heavy manufacturing.

Mr Michael said the Prime Minister's energy review could help in the long-term, and in the short-term steps were being taken to help industry remain competitive in the face of high gas prices.

On Teesport, he said he could not speculate on a pending planning application.

Elementis Chromium, in Eaglescliffe, said last month it was closing half of its plant - with the loss of 120 jobs - because of high energy prices.