Ineos, Exxon Mobil and Shell have signed a deal to secure ethane from US shale gas for the Fife Ethylene Plant (FEP) in Scotland.

The facility at Mossmorran will begin to receive ethane from Ineos' new £450m Grangement import terminal from mid-2017.

Ineos said the agreement will "ensure the competitiveness" of the manufacturing facility in Scotland and would complement supplies from North Sea natural gas fields.


FEP is owned and operated by ExxonMobil, while Shell has 50% capacity rights.

Geir Tuft, Business Director at INEOS O&P UK, said: "This is a landmark agreement for everyone involved. We know that ethane from US shale gas has transformed US manufacturing and we are now seeing this advantage being shared across Scotland."

Elise Nowee, General Manager Base Chemicals Europe, Shell Chemicals, added: "This agreement gives FEP access to the new infrastructure developed by INEOS and in so doing brings US advantaged ethane to FEP. The agreement will help us to meet the long-term needs of our ethylene customers."

The FEP is one of Europe's largest and most modern ethylene facilities, with an annual capacity of 830,000 tonnes of ethylene.

(LM/CD)