The owners of the giant terminal at Grangemouth have secured a £230million loan guarantee from the UK government to build a new facility to import shale gas.
Ineos said it was one of the most important infrastructure projects of recent times in Scotland and would protect thousands of jobs across the country.
The company said confirmation of the loan guarantee would allow it to raise funds to invest in a new terminal to import, store and process ethane from shale gas in Grangemouth as North Sea supplies dwindle.
The future of the site was in doubt last year because of an industrial dispute, but Ineos said it had invested £300million as part of a long-term survival plan for Grangemouth to manufacture petrochemicals beyond 2017.
“Without doubt, this is one of the most important 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,” said chairman Jim Ratcliffe.
“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.”
The loan guarantee from the UK government enables Ineos to raise financing on £230million specifically to cover the import facility and storage tank to be built at the site.
The ethane tank will be the largest in Europe and is central to the company’s plans to import shale gas from the US. By 2016 Grangemouth will be a shale gas-based facility, which Ineos said was essential if it is to compete in world markets beyond 2017.
“Over £1 billion of infrastructure projects have now been brought forward as a result of the UK guarantees scheme and £36billion worth of projects are pre-qualified,” said Chief Secretary to the Treasury Danny Alexander.
“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.
“The Grangemouth guarantee is fantastic news for Scotland’s economic future, and for the UK’s energy security.”
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