- ExxonMobil's Fife Ethylene Plant closure in February cuts 830,000 t/y ethylene output.
- Closure risks 429 jobs, with only 50 potential transfers to Fawley, England.
- Closure follows a $1 billion upgrade need and harsh economic conditions.
- Seven major EU and UK crackers closed or announced for closure in 18 months.
Closure Impact
ExxonMobil's decision to close the Fife Ethylene Plant (FEP) at Mossmorran in February results in the loss of 830,000 tonnes per year of ethylene production. This move is driven by the need for a $1 billion investment for upgrades and challenging economic conditions.
Job Losses
The closure endangers 429 jobs, including 179 direct staff and 250 contractors. Only 50 employees have the option to transfer, requiring relocation to the Fawley complex in England, 480 miles away.
Supply Chain Disruption
The FEP, a steam cracker using light ethane feedstock, is part of a broader trend with seven major crackers in the EU and UK closing or announced for closure in 18 months, leading to a cumulative loss of nearly 5 million tonnes of annual ethylene capacity.
Infrastructure Challenges
The closure destabilizes the industrial network, affecting the adjacent Shell NGL Plant, which must find new solutions for ethane off-take. The INEOS pipeline, supplying imported US shale gas, faces viability issues, highlighting wasted capital when industrial lifelines are cut.
