INEOS ‘ Grangemouth site to become profitable overnight on US ethane – CEO

GRANGEMOUTH, Scotland (ICIS)–The Grangemouth site will become profitable overnight as the first supplies of ethane arrive from the US, John McNally, the CEO of INEOS O&P (olefins and polymers), said on Tuesday.

INEOS said that the 760,000 tonne/year Grangemouth gas cracker will run at 100% with the arrival of US ethane.

McNally said that Grangemouth losses had been greater than $100m at times when plants were running below optimum capacity.

“We expect to be making $100m of EBITDA [earnings before interest, tax, depreciation and amortisation] if this site is running [at full capacity],” he added at a press conference, held on the arrival of the first Dragon class ethane carrier at the site.

“The key for us is filling up to full rates,” McNally said.

“Grangemouth is going to be here for the next 20 years,” said INEOS chairman and proximal owner Jim Ratcliffe.

The revival of the petrochemicals production site in Scotland had secured 10,000 jobs, INEOS said.

Shale gas now underpins the firm’s European assets, said Ratcliffe. INEOS will take its time in deciding where to make its next investment, he added.

But Ratcliffe stressed that the company would be likely to invest where returns are best, and that is in the US.

INEOS has a master plan for the Grangemouth site which involves investments in a new power plant and is keen to attract inward investment into cleared areas.

Ethanol and polyethylene is made on the Grangemouth site, while ethylene is piped to Runcorn and Hull in northern England to support production units at those locations.