Strategy

Reliable and sustainable to 2040+

 

Since 1975, the Forties Pipeline System ("FPS") has been the vanguard of the UK's North Sea oil and gas industry  – safely transporting and processing billions of barrels of crude oil. Under INEOS' ownership the FPS enters a new phase in its lifecycle underwritten by a strategy encompassing three key elements: Sustainability, Investment and the local Community.

Our 2040+ goal requires targeted investment in the infrastructure, critical to ensuring we are still operating efficiently, safely and sustainably for the next twenty years and beyond. In 2018 we announced a £500million strategic investment in the FPS to reconfigure the system, extend its life and continue to support North sea oil and gas production, sustainably, into the longterm.

Sustainability

INEOS and Petroineos own and operate one of Scotland’s largest manufacturing sites at Grangemouth. Since taking ownership of the facility in 2005, it has already reduced CO2 emissions at the site by 37%. With Kinneil situated within the complex, INEOS FPS are working closely with both INEOS O&P UK and PetroIneos at Grangemouth in developing a site-wide roadmap to lead the transition to a net zero economy.

To read more about INEOS' commitments to sustainability and our 2020 Report, click here.

Grangemouth’s Journey to net zero

KINNEIL.jpg

“Net zero” by 2045 at Grangemouth is a science-based commitment that means investment in reduction measures, changes in production processes, and efficiency upgrades. INEOS' investment across the Grangemouth site in all operating businesses will reduce CO2e (carbon dioxide equivalent) through practical measures that focus on 'at source' emissions.

In line with Scotland's commitment to meet the Paris Climate Change Agreement, this will mean INEOS will be climate-neutral in Grangemouth by 2045 in an effort to limit global warming by 1.5oC It also accounts for the shared ambition to reduce greenhouse gas emissions to at least 55% below 1990 levels by 2030.

Andrew Gardner, CEO INEOS FPS and Chairman of INEOS Grangemouth, said: "Our work continues to deliver our clear, achievable road-map to effectively contribute to a reduction of emissions from our operations which includes the investment in the NEP, upgrades to FPS and changes in our Petroineos operations. It will lead to increased usage of green power and clean heat, capturing and reusing hydrogen and CO2, further investment in electrification and where appropriate switching to recycled or bio-feedstock.”

The roadmap positions INEOS at the forefront of the energy transition that will continue the rejuvenation of operations here at Grangemouth, and helping secure thousands of jobs for the Scottish economy.

Acorn CCS Project

INEOS Chemicals Grangemouth (INEOS O&P UK), INEOS FPS and Petroineos signed a Memorandum of Understanding with the Acorn CCS Project to work together to develop Scotland’s first carbon capture and storage system linking Scotland’s industrial heartland to the Acorn CO2 transport and storage system in North East Scotland by 2027. Investment at the Grangemouth site will enable the capture and storage of approximately one million tonnes a year of CO2 from Grangemouth by 2030, with the scope to capture further significant volumes beyond this date. Once operational the proposed carbon capture and storage system will further increase emission reduction at the site to more than 50% compared with 2005.

Commenting on the announcement, Andrew Gardner, Chairman INEOS Grangemouth, said: “INEOS and Petroineos at Grangemouth recognise the importance of reducing greenhouse gas emissions from our industrial processes. As a one of Scotland’s largest manufacturers and employers, we acknowledge that we are operating a CO2 intensive industry and we have a significant role to play in helping Scotland reach its Net Carbon Zero target by 2045. We have already made significant reductions since taking ownership of the site and we are delighted to be taking this further by supporting the Acorn CCS Scottish Cluster bid. Once operational, the carbon capture and storage system will provide an essential route to permanently and safely capture and store CO2 emissions for large industrial emitters throughout Scotland with significant positive impact for Climate Change and the country.”

Nick Cooper, CEO of Storegga, the lead developer of the Acorn Project said: “The Acorn Project partners (Storegga, Shell and Harbour Energy) are delighted that INEOS and Petroineos have entered into an MOU with Acorn, which is a really significant step in managing Scotland’s industrial emissions. The Acorn CCS and hydrogen project is advanced, highly scalable and has clear visibility of a large CO2 customer base. Acorn provides critical carbon reduction infrastructure to the growing Scottish Cluster of emitters and to the wider UK.”

To read more about the Acorn CCS Project, click here.

Projects and Investment

We recognise the importance of longevity of export routes to our existing customers and prospective customers who are contemplating selecting the FPS for their transportation and processing needs. We aim to continue to offer a high availability service year on year.

Getting Maintenance Right

We undertake maintenance on the FPS to match system availability, reliability and efficiency with our customers' needs.

Our business needs are clear:

  • To comply with all applicable legislation
  • To meet the expectations set out in the INEOS FPS Management System
  • To meet our production quality and throughput requirements
  • To be considered as a benchmark within our industry

In support of these, we set ourselves specific business targets that include:

  • Achieving an availability of > 99.3%
  • Zero loss of hydrocarbon containment
  • Full compliance with system operating envelopes

Our focus is on predictive, non-intrusive maintenance. This includes watch-keeping, function checking, inspections and condition based maintenance techniques.

Understanding the Condition of our Facilities

The FPS is managed in accordance with a Pipeline Integrity Management Scheme (PIMS). This documentation system meets the requirements of all relevant regulations.

We define clear accountabilities and responsibilities for integrity management within the FPS. Regular integrity management reviews take place with our operating and inspection authorities and we review our operation and integrity data annually with the Health and Safety Executive.

The forecast operational lifetime of the FPS pipelines is reviewed by us regularly and we expect the system to be available to at least 2040.

The pipeline integrity strategy of the FPS is to inhibit internal corrosion and we have been successful in sustaining negligible corrosion rates. Our inspection data demonstrates the success of this strategy and we see no reason to expect that the pipeline life of the FPS will not extend beyond 2040. We will continue to invest heavily in the FPS to maintain required integrity and availability performance to end of life.

Project Detail: Cruden Bay Reconfiguration

crudenbaycrop1.jpg

The Cruden Bay terminal is a key part of the FPS infrastructure and is the transition point from our subsea pipeline, from Forties Unity and Forties Charlie, to the landline that runs to Kinnneil and Dalmeny in Central Scotland. This project has addressed significant vulnerabilities and completed the following:

  • 24”/36” Sealine Receiver Main Oil Line Valve Replacement
  • Below Ground pipework replaced by overground pipeline
  • New High Integrity Pipeline Protection Skid installed
  • New Landline Launching facilities including new launcher and 24”/36” Valves installed
  • Terminal instrument and control systems upgraded to modern systems
  • All redundant pipework and system retired and decommissioned

Reconfiguring the terminal gives better access to the pipeline for maintenance and inspection purposes, provides much improved facilities for PIG reception / launching and removes residual risk associated with the now redundant below ground pipework. Ultimately the new site set up assures safe, sustainable operation to 2040+.

To watch timelapse footage of our Cruden bay site undergoing it's transformation, click here to view on our homepage.

Community Outreach

The INEOS businesses at Grangemouth (FPS, Olefins and Polymers UK and PetroIneos) have strong ties to the local community. We engage in community meetings, work with schools and support local causes.

Communications

Safety is, unquestionably, the primary objective of the INEOS FPS Board, Senior Managers and all staff and contractors. We pride ourselves on our open and transparent communication with the local community. We will always update our neighbours on any potential noise disruptions or flaring activity (click here to read our SHE section to learn more about flaring and the work we are doing to minimise future flaring events). INEOS also has representatives from across the business that attend community meetings.

INEOS Community Fund

INEOS FPS works closely with the community, and in 2020 INEOS started a Community Fund where employees can nominate local charities to receive extra support. In 2020, £1m was shared across 159 lifeline grants covering 15 countries. To read more about the Community Fund and the causes it helped to support please click here.

INEOS FPS employees nominated a number of charities to receive a share of the £1m:

The Aberdeen based Instant Neighbour, who provide direct support through the provision of food parcels as well as practical assistance by offering paid employment and training opportunities.

The Grangemouth-based International Rescue Corps. The charity provide transport and deploy volunteer personnel to deliver food parcels to vulnerable families and school breakfast club members in Grangemouth.

The Falkirk and District Mental Health Association (FDAMH) also received a donation, a charity that supports individuals to recover from mental ill health.

Working with schools

We have an established relationship with many of the local schools, providing tours, engaging in workshops at summer schools and supporting high-school projects.

We also have a number of STEM (Science, Technology, Engineering and Mathematics) ambassadors working at INEOS who help to promote the importance of studying STEM subjects at school.