A HUGE jobs boost for Grangemouth could be on the way thanks to two developments which were revealed yesterday.
Scottish ministers have granted consent for the construction and operation of a gas-fired combined heat and power (CHP) plant at BP Kinneil Terminal in Grangemouth, possibly creating up to 400 jobs.
Much more controversially, Ineos announced yesterday the arrival of its first European import of ethane produced from shale gas that was fracked in the USA.
The Ineos Intrepid carried the first-ever cargo of shale gas-sourced ethane to Rafnes in Norway, with the company saying “it is expected that shipments to Grangemouth will start later this year”.
BP Kinneil Terminal processes approximately 40 per cent of North Sea crude oil production which is brought to the site via the Forties Pipeline System (FPS).
The terminal requires steam for heat energy to drive the necessary oil separation processes and the proposed CHP Plant Project will meet those requirements.
As part of the Forties Pipeline System, the Kinneil Terminal is a strategic piece of oil and gas industry infrastructure and will provide long-term security of service to the developers of new oil and gas fields who rely upon the Forties system.
Up to 400 temporary jobs could be created during construction, according to the Scottish Government.
Energy minister Fergus Ewing said: “This combined heat and power plant falls within the Grangemouth Investment Zone that is identified in the National Planning Framework 3.
“It is therefore within the National Development area where ministers will support development that is needed to maintain the key infrastructure and industry at the Grangemouth Investment Zone, strengthening its nationally important role in freight handling, providing energy-related infrastructure and facilitating wider economic activity.
“This proposed development will provide welcome long-term security of service to developers of new oil and gas fields, at an otherwise challenging time for the wider oil and gas industry.
“There is consensus across stakeholders that we must retain critical infrastructure to ensure the long-term viability of the North Sea oil and gas industry.
“There is a long-term sustainable future for the North Sea – which will be supported by investments such as these at BP Kinneil Terminal – and we are committed to using every lever at our disposal to support the industry through this challenging time.”
Meanwhile there may be a moratorium on fracking in Scotland, but Ineos are confident that its new steam cracker plant at Grangemouth will soon be handling ethane that is the product of fracking in the USA, which is why the recent arrival of the first shale gas-sourced ethane in Norway is a red letter day for the company.
Ineos will use the ethane from the shale gas in its two steam crackers at Grangemouth and Rafnes, both as a fuel and as a feedstock.
Tom Crotty, group communications director, said in an email:
“I can confirm that the Ineos Intrepid arrived in Rafnes today carrying 27,500 cu m of ethane from US shale gas,”
In a statement on its website, Ineos said: “This is the first time that ethane from US shale gas has ever been shipped to Europe and represents the culmination of a $2 billion investment by Ineos.
“Ineos intends to eventually use eight of these huge ships to provide a virtual pipeline shipping US shale gas to its two petrochemical sites in Norway and Scotland, as US shale gas replaces the reducing gas feed from the North Sea.”
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