Ineos Signs Ethane Deal with ExxonMobil, Shell for Scottish Plant

Ineos announced today that it has signed a long-term agreement with ExxonMobil and Shell to secure ethane from U.S. shale gas for its Fife Ethylene Plant at Mossmorran, in Scotland. The first deliveries should arrive in mid 2017.

“U.S. 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,” Geir Tuft, Business Director at Ineos O&P UK, commented in a press release on Monday.  

The Fife Ethylene Plant will receive ethane via the new import terminal at its Grangemouth facility. Ineos has committed £450 million to construct the ethane import terminal. An existing pipeline will transport the ethane from Grangemouth to Fife. 

“This is a landmark agreement for everyone involved,” Tuft added. 

Last month, the Swiss chemical company acquired a 25% interest in the Clipper South Gas Field from Fairfield Energy Holdings, confirming its intention to expand its upstream portfolio in the North Sea. A few days before, it had agreed to buy all of the UK North Sea gas fields controlled by  LetterOne, the investment vehicle owned by Russian businessman Mikhail Fridman.