INEOS has confirmed that the INEOS Insight, has arrived at the INEOS plant at Grangemouth in Scotland carrying 27,500m3 of ethane from US shale fields.

This is the very first time that ethane from US shale gas has ever been exported from the USA to the UK. It provides British industry the chance to benefit from US shale gas economics which did so much to revitalise manufacturing in the USA.

The Insight is one of eight specially designed Dragon class ships that will form a fleet of the world’s largest ethane capable carriers.The Insight has “SHALE GAS FOR MANUFACTURING” emblazoned along its 180 metre length.

Jim Ratcliffe, chairman and founder of INEOS, says, “This is a hugely important day for INEOS and the UK. We are very excited about the kick-start shale gas can give to British manufacturing”

The project has included the design and long term charter of all eight Dragon class ships which will collectively create a virtual pipeline across the Atlantic; connection to the new 300 mile Mariner East pipeline from the Marcellus shale in Western Pennsylvania to the Marcus Hook deep water terminal near Philadelphia, together with new export facilities and storage tanks.

INEOS has invested $2bn bringing US shale gas to Europe.

To receive the gas, INEOS has built the largest ethane gas storage tank in UK at Grangemouth in Scotland.

INEOS will use the ethane from US shale gas in its gas cracker at Grangemouth, both as a fuel and as a feedstock.

Jim Ratcliffe adds, “We are nearing the end of a hugely ambitious project that has taken us five years and cost $2 billion, as we begin supply of ethane from shale to our sites in Europe. This is a world first and I am incredibly proud of everyone involved in it. I believe that INEOS is one of very few companies in the world that could have successfully pulled this off. ”

About INEOS

INEOS will be the sole operator of the three licenses awarded today. Shale gas extraction has transformed communities in the USA where landowners own the mineral rights under their property. INEOS has developed an industry leading community benefits package that seeks to replicate this, giving communities a real stake in development. INEOS has promised to share 6% of revenues. Four percent of this would go to homeowners and landowners in the immediate vicinity of a well, and a further 2% to the wider community. Based on our estimates, a typical 10km by 10km development area would generate £375m for the community over its lifespan. Overall we anticipate that our future shale gas business could contribute over £2.5bn to communities under this scheme, having a material impact on regional economies and the standard of public services.

INEOS recognises that shale gas extraction is a controversial issue and communities have understandable questions about the potential risks and rewards. We will engage comprehensively and openly with communities at every stage to accurately convey the risks and rewards, so they can make an informed judgment about extraction. It is the view of mainstream scientific authorities such as the Royal Society and Royal Academy of Engineering that shale gas can be extracted safely with appropriate regulation, and there could be real benefits from doing so, including jobs, tax revenue, local investment and improved energy security. It is vital to have a thorough and evidence-based conversation to ensure this opportunity is considered properly.