Tuesday, 10 November 2021 09:06

Ineos signs shale gas deal with ExxonMobil and Shell

Fife Ethylene Plant at Mossmoran

Ineos has signed an agreement with ExxonMobil Chemical Limited and Shell Chemicals Europe BV to supply ethane from US shale gas for the Fife Ethylene Plant.

The plant at Mossmoran will receive ethane from Ineos’ new £450million import terminal in Grangemouth from mid-2017.

The firms say access to this new source of feedstock will complement North Sea natural gas supplies, with the agreement ensuring the competitiveness of the facility and helping it to secure skilled jobs.

Ethane gas is needed to produce ethylene, which is used in the manufacturing of a range of products in the UK, and is also exported to other countries. Access to ethane from shale production will provide enough raw material to run UK “steamcrackers,” making the ethylene at full operating rates.

Geir Tuft, business director at Ineos O&P UK, said: “This is a landmark agreement for everyone involved. US ethane from shale gas will provide an additional resource, supplementing domestic production from the North Sea. It will now be used by two of Scotland’s largest manufacturing plants helping to secure their feedstock supply for years to come.”

Elise Nowee, general manager for Base Chemicals Europe at Shell Chemicals, added: “This agreement gives FEP access to the new infrastructure developed by INEOS and in so doing brings US advantaged ethane to FEP. The agreement will help us to meet the long-term needs of our ethylene customers.”

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