Ineos signs a new Grangemouth pipeline contract

Ineo has awarded a massive pipiing contract for work at its Grangemouth site
Ineo has awarded a massive pipiing contract for work at its Grangemouth site

Petrochemical giant Ineos has awarded a massive pipe contract to a firm to help complete its £300 million ethane supply project.

Renfrew-based mechanical engineering specialist Doosan Babcock was the preferred contractor to fabricate and install pipework linking the Grangemouth site’s new ethane tank, which will store shale gas imported from the USA, to the import jetty and the KG ethylene cracker plant.

Ineos stated the contract, the full value of which has not been disclosed, will provide employment for between 100 and 150 people.

Ineos procurement manager Robert Hamilton said: “Following a competitive tender process we are delighted to announce the mechanical piping contract for the main pipeline associated with the ethane supply project will be fulfilled by Doosan Babcock.”

Ineos ethane supply project manager Alan MacMillan said: “We were very impressed with the bid from Doosan Babcock, particularly their offer of an experienced team with extensive knowledge of the Grangemouth site.

“Babcock has a good track record of delivering successful projects at Grangemouth with an excellent safety record.

“We look forward to working with Doosan Babcock in delivering this vital project for Ineos and the UK petrochemical industry as a whole.”

David Cornforth, Doosan Babcock director, said: “Grangemouth is an important strategic site for us and a major place of employment for our people.”

It is hoped the ethane supply project, part of the survival plan Ineos initiated at the end of 2013, will be completed in 2016, allowing the firm to import, store and utilise relatively cheap USA shale 
gas.