INEOS has received a £230 million infrastructure loan guarantee from the UK government to support the financing of its LNG facility at Grangemouth.
The guarantee allows INEOS to raise the money necessary to build a new terminal to import and store ethane for Grangemouth, as North Sea availability declines.
Jim Ratcliffe, INEOS Chairman, commented: “Without doubt, this is one of the most important infrastructure projects of recent times in Scotland, with implications to be felt right across the UK, not only for employment but also for manufacturing in general.
“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.”
Chief Secretary to the Treasury, Danny Alexander MP, added: “Over £1 billion of infrastructure projects have now been brought forward as a result of the UK guarantees scheme and £36 billion worth of projects are pre-qualified. Our action is creating the right conditions for more investment in our infrastructure, helping to build a stronger economy and a fairer society across the country.”
A contract has also been signed with TGE Gas Engineering for the construction of Europe’s largest ethane storage tank, which is central to the site’s plans to import shale gas from the US. INEOS added that Grangemouth would be a shale gas-based import facility by 2016, essential if it is to compete in world markets beyond 2017.
Gerry Hepburn, CFO, O&P UK
“The news that the UK government is supporting our plans to build an ethane import and storage facility at Grangemouth with a loan guarantee is a critical element to ensure the long term future of the site. We will use the loan guarantee to raise funds through a public bond issue. The proceeds of the bond will be used to fund the ethane tank project at Grangemouth. It will be very rewarding to see the renewal of the site starting to take shape as we begin construction work.”
TGE Managing Director, Werner Schlott
“We are very pleased to have been awarded the contract to build the ethane storage tank for INEOS O&P UK at their site in Grangemouth. As a company we have extensive expertise and knowledge of tank construction and relish the opportunity to bring this to Scotland. We look forward to working with the project team at Grangemouth and to delivering the ethane storage tank.”
Harry Deans, CEO, Olefins & Polymers UK
“We are delighted to confirm we have finalised a contract with TGE for them to build the ethane storage tank. 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."
Edited from various sources by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17072014/lng_facility_in_scotland_receives_government_funding_1006/