The face of Grangemouth is changing. And with it, comes the promise of a new and exciting future.
ONE of the largest ethane storage tanks ever to be built in Europe is taking shape.
Once completed, the 60,000-cubic metre tank will hold 30,000 tons of liquefied ethane gas – and herald a new era in the manufacture of petrochemicals.
“The skyline at Grangemouth has changed somewhat since the 40-metre tank wall was built,” said Alan MacMillan, O&P UK ethane project manager. “These are exciting times for the O&P UK business and the tank is tangible evidence of the investment being made.”
The construction of the tank is just one element of a number of synchronised projects and activities that forms O&P UK’s vision for a sustainable and viable future.
INEOS is investing about £450 million to transform the loss-making Scottish manufacturing site, which employs more than 1,300 people directly, into one of the best in the world.
“It is the most significant investment into UK and Scottish petrochemical manufacture of recent times,” said John McNally, CEO INEOS Olefins & Polymers UK. “And it clearly demonstrates our commitment to Grangemouth.”
INEOS needs the ethane, which will begin arriving from the US next year, to replace the dwindling stocks from the North Sea. Only by securing sufficient raw materials to run the manufacturing plants optimally and at full capacity – something it has been unable to do for many years – can the Scottish site begin to turn around its fortunes.
In addition to the storage tank, the ethane supply project encompasses significant infrastructure work.
The business is making changes to its jetty and offloading facility, where the state-of-the-art ships will dock, and laying miles of pipes to transfer the ethane to the tank and on to the manufacturing plant.
The work will be carried out by a number of contractors who have been hired to ensure the project is completed on time, safely and within budget.
“Working alongside the many different companies and across a number of interfaces is a complex and challenging task,” said Alan.
The plan being implemented at Grangemouth is very similar to the one recently undertaken at INEOS’ Rafnes plant in Norway where the company has successfully built the infrastructure to enable it to import ethane from the North American shale gas fields this year.
Long-term contracts have been agreed with American suppliers to pipe the shale gas ethane cross country to the east and Gulf coasts of America from where it will be shipped across the Atlantic to Norway – and in 2016 to Scotland – in a fleet of eight specially-designed ships commissioned by INEOS.
In the meantime, as Grangemouth awaits those shipments, the O&P UK business continues to work on its strategic survival plan, which will protect the long-term value of the site by creating a global leading chemicals and manufacturing hub with the potential to become a centre of excellence and innovation in Scotland.