Ineos to supply US ethane to Scottish ethylene cracker

Ineos Europe AG, a unit of Ineos AG, Switzerland, has entered a deal for the long-term supply of US ethane supplies to ExxonMobil Chemical Ltd.’s 830,000-tonne/year Fife ethylene plant (FEP) at Mossmorran on Scotland’s eastern coast near Braefoot Bay, about 25 miles north of Edinburgh.

Under the agreement, Ineos will deliver price-advantaged US shale ethane supplies from its new Grangemouth import terminal along an existing pipeline to FEP beginning in 2017, Ineos said.

The US-sourced ethane supplies are intended to supplement FEP’s current supply of NGL feedstock from North Sea production by securing additional raw feed that to help the plant meet long-term needs of its domestic and international customers, according to FEP’s owner and operator, ExxonMobil Corp., and Royal Dutch Shell PLC subsidiary Shell Chemicals Europe BV, which holds 50% capacity rights in the venture.

The supply deal follows Ineos’ £450-million investment to build an import terminal and storage tank to store and process ethane from shale gas as part of a survival plan for its 210,000-b/d Grangemouth refinery which involves transforming the plant into a shale gas-based operation by 2016 in order for it to become a profitable business again (OGJ Online, July 17, 2014).

Ineos previously entered deals to secure US shale gas supplies for its European cracking operations with Consol Energy Inc., Pittsburgh, Range Resources-Appalachia LLC, and Enterprise Products Partners LP (OGJ Online, June 12, 2014).

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...