Grangemouth shale imports win planning
15 May 2014
Ineos’ plans to build a storage tank for US shale gas imports at its Grangemouth petrochemicals facility have received planning consent.
Falkirk council yesterday approved the project, which will comprise the building of a 60,000 cubic metre capacity ethane storage tank as well as associated infrastructure. This will allow US ethane to be imported via the Grangemouth docks, stored and then processed on the Grangemouth site’s existing KG ethylene plant.
The plan for the £150 million project was first announced in October last year as part of Ineos’ £300 million survival plan for Grangemouth, following a temporary closure of the site prompted by strike action.
We have passed another key milestone on our journey to turning our business around
Ineos’ Harry Deans
“In being granted planning permission to build an ethane storage tank we have passed another key milestone on our journey to turning our business around,” said Ineos Olefins & Polymers UK chief executive Harry Deans.
“We are now able to move forward with our plans that will culminate in the site importing advantaged ethane feedstock from the US.”
The ethane tank development is being supported by both the Scottish and UK governments: the Scottish government has indicated it will support the company’s application for a £9 million grant to help finance the project, and the UK Government has given its prequalification approval for a £125 million loan guarantee facility to help Ineos secure project financing.
