Chemicals firm hails agreement
Ineos’s shale deal is landmark for Grangemouth
Chemicals company Ineos has signed a deal with Exxon Mobil and Shell that will see the two oil companies supply ethane from US shale gas production.
It will be used as a key fuel for the Grangemouth complex (pictured) which is currently reliant on dwindling and expensive sources of the raw material from the North Sea.
The Fife Ethylene Plant, at Mosmorran, is owned and run by Exxon Mobil, with Shell holding 50% of the capacity rights.
There is further hope that the benefits will be felt across the supply chain and that the deal will have a particular impact on manufacturing in Scotland.
Geir Tuft, business director at Ineos Olefins & Polymers UK, said: “This is a landmark agreement for everyone involved. We know that ethane from US shale gas has transformed US manufacturing and we are now seeing this advantage being shared across Scotland.”
The new supplies will be imported via Grangemouth’s new £450m terminal which Ineos has described as “the most significant investment in UK petrochemical manufacturing in recent times”.