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Boost For Scottish Shale Gas Terminal

Associated Press

The owners of the giant terminal at Grangemouth have secured a £230 million loan guarantee from the UK government to build a new facility to import shale gas.

Ineos said it was one of the most important infrastructure projects of recent times in Scotland and would protect thousands of jobs across the country.

The company said confirmation of the loan guarantee would allow it to raise funds to invest in a new terminal to import, store and process ethane from shale gas in Grangemouth as North Sea supplies dwindle.

The future of the site was in doubt last year because of an industrial dispute, but Ineos said it had invested £300 million as part of a long-term survival plan for Grangemouth to manufacture petrochemicals beyond 2017.

Chairman Jim Ratcliffe said: “Without doubt, this is one of the most important projects of recent times in Scotland, with implications to be felt right across the UK, not only for employment but also for manufacturing in general.

“Our ability to import US shale gas underpins the future of manufacturing at Grangemouth and across many businesses in Scotland. It is a vital step towards preserving the long term future of the Grangemouth site and those businesses that depend upon its continued presence in Scotland.”

The loan guarantee from the UK government enables Ineos to raise financing on £230 million specifically to cover the import facility and storage tank to be built at the site.

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