- INEOS has committed £450 million to construct the new ethane import terminal at Grangemouth.
- The Fife Ethylene Plant will receive ethane from mid-2017.
- The plant has an annual capacity of 830,000 tonnes of ethylene.
- Ethane is a vital raw material for producing ethylene, used in various products.
Agreement Overview
INEOS Europe AG, ExxonMobil Chemical Limited, and Shell Chemicals Europe B.V. have signed a long-term agreement to supply ethane from US shale gas to the Fife Ethylene Plant (FEP) in Scotland, starting mid-2017. This agreement aims to secure a stable feedstock supply for the plant.
Supply Chain and Infrastructure
The Fife plant will receive ethane from INEOS' new import terminal in Grangemouth, Scotland. This new source will complement existing supplies from North Sea natural gas fields. An existing pipeline will transport the gas from Grangemouth to Fife.
Investment and Capacity
INEOS has invested £450 million in constructing the new ethane import terminal at Grangemouth, marking a significant investment in UK petrochemical manufacturing. The Fife Ethylene Plant, one of Europe's largest and most modern ethylene facilities, has an annual capacity of 830,000 tonnes of ethylene.
Importance of Ethane
Ethane is a crucial raw material for producing ethylene, which is used in manufacturing a wide range of products across the UK and exported to Europe and other markets. Access to US ethane will enable UK steamcrackers to operate at full capacity, ensuring a steady supply of ethylene.
Plant Operations
Owned and operated by ExxonMobil, with Shell holding 50 percent capacity rights, the Fife Ethylene Plant started production in 1985. It was the first plant designed to use natural gas liquids from the North Sea as feedstock, supporting manufacturing in Scotland, the rest of the UK, and export markets.
