INEOS prepares idled Grangemouth cracker ahead of US shale deliveries

LONDON (ICIS)–INEOS has carried out operational trials on the second train of its KG cracker at its Grangemouth, UK, complex, ahead of the delivery of US shale ethane stocks for the long-idled unit, the Switzerland-headquartered chemicals producer said on Tuesday.

The train, one of two making up the 700,000 tonne/year KG gas cracker, has been mothballed since 2008. Recommissioning trials have been completed, and the first US shale ethane deliveries are expected to dock in Grangemouth in the autumn.

INEOS has been unable to source sufficient feedstocks to run the cracker at full capacity due to dwindling supplies from the North Sea, according to the company. US shale ethane, sourced from the Marcellus Shale play in western Pennsylvania, will supplement locally-sourced supplies.

“We are now in great shape to receive shale gas from the US and to finally run the Grangemouth plant at full rate,” said Gordon Milne, INEOS Grangemouth Operations Director.

“When US shale gas finally arrives here in the autumn, this plant will move into the premier league of European petrochemical plants. Bringing the site back into profitability is the best way to secure our future here in Scotland,” Milne said in a statement.

The first US shale ethane arrived on European shores last week, at INEOS’ Rafnes, Norway, petrochemicals complex.

The JS INEOS Intrepid, the first ship to make the journey from the Marcus Hook, US, terminal operated by Sunoco Logistics to Rafnes, carries 27,500 cubic metres of ethane, equivalent to 14,500 tonnes, and is expected to be one of four ships making deliveries to the site each week.

INEOS has contracted the construction of eight 27,500 cubic metre tankers and four 32,000 cubic metre-capacity vessels to transport US shale gas to its European operations.