Plans to build a new import facility for shale gas at the Grangemouth complex have won initial backing from the UK Government as talks continue over the refinery’s future.
Ineos, which runs the petrochemicals site, has been in talks with the Treasury over guarantees that would underwrite a scheme to build storage facilities for liquefied gas.
It could pave the way for shale gas to be imported to the site from the US, replacing declining North Sea supplies and helping to safeguard the refinery.
There was confusion yesterday over the inclusion of the plans on the Treasury’s list of schemes which had “pre-qualified” for guarantees.
A mistake by officials appeared to result in the project being omitted from some publicity statements, but not others. The Ineos plan for an ethane plant was included on the list on the Treasury’s website last night.
A total of 40 infrastructure projects, worth £33billion, have passed the first hurdle for government funding guarantees.
Professor Alex Kemp, an Aberdeen University oil economy expert, told the Press and Journal: “The economies of refining in western Europe are quite difficult.
“There have been some closures over the years, with a number in England put up for sale.
“At the moment they are suffering from competition from exports from America.
“A particular problem is with the feed stock, ethane, and the production of this from the North Sea has gone down for some years now.
“That’s why Ineos wants to build a new ethane plant there.”
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