Government backing of £230 million for a large ethane gas storage tank at Grangemouth has been announced, creating hundreds of jobs during construction and securing thousands more across the UK.
Ineos Olefins & Polumers UK says it will go ahead with plans to build the largest ethane storage tank in Europe after its successful application for a £230M infrastructure loan guarantee from the Government. Ineos has finalised contract agreements with specialist engineering company TGE Gas Engineering for the construction of the facility after the firm was announced as preferred bidder in March.
This new ethane gas import facility and storage tank terminal will be used to store and process ethane extracted from shale gas as the availability of North Sea supply declines.
Falkirk Council granted planning permission for the construction of the new tank, which will have the capacity to store 60,000 cubic metres of ethane gas, in May. Ineos has invested more than £300M at its Grangemouth site as part of a long term survival plan necessary for the site to manufacture petrochemicals beyond 2017.
Ineos chairman Jim Ratcliffe said: “Without doubt, this is one of the most important projects of recent times in Scotland, with implications to be felt right across the UK.
“Our ability to import US shale gas underpins the future of manufacturing at Grangemouth and across many businesses in Scotland. It is a vital step towards preserving the long term future of the Grangemouth site and those businesses that depend upon its continued presence in Scotland.”
Olefins & Polymers UK CEO Harry Deans said: “The construction of the storage tank is complex and needs specialist knowledge, but in TGE, we know we are working with a company that are truly leaders in their field.”
TGE managing director Werner Schlott said: “We are very pleased to have been awarded the contract. As a company we have extensive expertise and knowledge of tank construction and relish the opportunity to bring this to Scotland.”
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