Gulf Oil and Gas accountACCOUNT

INEOS Signs Agreement to Supply Ethane from US Shale Gas

Source: www.gulfoilandgas.com 11/9/2015, Location: Europe

Share |
INEOS Europe AG, ExxonMobil Chemical Limited and Shell Chemicals Europe B.V. announced a long-term sale and purchase agreement to secure ethane from US shale gas for the Fife Ethylene Plant (FEP) at Mossmorran in Scotland, from mid 2017.

The Fife plant will receive ethane from INEOS’ new import terminal in Grangemouth, Scotland. Access to this new source of feedstock will help complement supplies from North Sea natural gas fields. The agreement will also ensure the competitiveness of a major manufacturing facility in Scotland and help secure skilled jobs in the long run.

FEP is owned and operated by ExxonMobil and Shell has 50 percent capacity rights.

Ethane gas is a vital raw material needed to produce ethylene, which itself is used in the manufacture of a broad range of products across the UK and is exported to Europe and other world markets. Access to ethane from shale production will provide sufficient raw material to run UK steamcrackers to make ethylene at full operating rates.

“This is a landmark agreement for everyone involved”, says Geir Tuft Business Director at INEOS O&P UK. “We know that ethane from US shale gas has transformed US manufacturing and we are now seeing this advantage being shared across Scotland.”

“Today’s agreement helps to secure additional feedstock for the Fife plant,” said Karen McKee, vice president of ExxonMobil’s global basic chemicals business.

“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” said Elise Nowee, General Manager Base Chemicals Europe, Shell Chemicals.

INEOS has committed £450 million to construct the new ethane import terminal at its Grangemouth facility. It represents the most significant investment in UK petrochemical manufacturing in recent times and is supported by both the UK and Scottish governments. An existing pipeline will transport the gas from Grangemouth to Fife.

The Fife Ethylene Plant is one of Europe's largest and most modern ethylene facilities. The plant started production in 1985, and is one of only four natural gas-fed steam crackers in Europe. It was the first plant specifically designed to use natural gas liquids from the North Sea as feedstock. Alongside INEOS Grangemouth, it supplies manufacturing in Scotland, the rest of the UK and export markets with ethylene. It has an annual capacity of 830,000 tonnes of ethylene. Shell Chemicals has 50 percent capacity rights at the Fife Ethylene Plant.

Shale Gas News in Scotland >>

Austria >>  1/23/2017 - The US dollar gained in December against all major currencies with the exception of the British pound sterling and the Canadian dollar. On average, th...
Norway >>  1/17/2017 - The Ministry of Petroleum and Energy today offers 29 oil-companies participation in 56 production licenses on the Norwegian Continental Shelf in the A...

Austria >>  1/16/2017 - Open interest (OI) increased in November for selected US commodity markets such as crude oil, natural gas, copper, livestock and agriculture, while de...
Austria >>  1/11/2017 - Amid increasing oversupply, the market structure of Dubai flipped back to contango, while the contango in both Brent and WTI steepened. The light back...

Austria >>  1/5/2017 - Preliminary data for October shows that total OECD commercial oil stocks fell by 15.3 mb for the third consecutive month to stand at 3,027 mb, which i...
Austria >>  1/3/2017 - In a very volatile month for crude oil, the ORB wiped out almost all its previous month’s gains to end November close to 10% lower. Oil prices trended...

Related Categories: Coalbed Methane  General  Heavy Oil  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 


Scotland Oil & Gas 1 >>  2 |

More News

 

Oil & Gas Companies in Scotland >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.