Ineos has confirmed it is to build Europe's largest ethane storage tank.
The news comes after the company secured a £230m loan guarantee from the UK Government for the scheme.
The loan would allow the firm, which owns the Grangemouth plant, to raise the funds necessary to invest in a new terminal import and ethane store at the facility.
Planning permission for the £125m store had been approved by Falkirk Council in May.
In a statement, Ineos added that a contract has now been signed with Germany-based TGE Gas Engineering to start construction of the terminal, which will store and process ethane from shale gas "as North Sea supplies dwindle".
Jim Ratcliffe, INEOS Chairman, 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."
Danny Alexander, Chief Secretary to the Treasury, said: "Over £1bn of infrastructure projects have now been brought forward as a result of the UK guarantees scheme and £36bn worth of projects are pre qualified.
"Our action is creating the right conditions for more investment in our infrastructure, helping to build a stronger economy and a fairer society across the country. The Grangemouth guarantee is fantastic news for Scotland's economic future, and for the UK's energy security."
Ineos has invested more than £300m at its Grangemouth site as part of a long-term survival plan.
(JP/IT)
Construction News
17/07/2014
Ineos Project Secures Government Finance

29/04/2025
Albyn Housing Society, a major social housing provider operating across the Highlands, is expanding its portfolio to the Isle of Skye for the first time.
The society, which manages almost 3,900 properties across 80 rural communities on the mainland, will soon hand over seven new affordable homes i

29/04/2025
As SP Energy Networks progresses with its ambitious £10.6 billion investment plan (RIIO-T3) to upgrade Central and Southern Scotland's electricity transmission network between 2026 and 2031, a new independent report has shed light on the costs and characteristics of various transmission technologies

29/04/2025
Casey Gardner, a 19-year-old apprentice painter and decorator from Fife, is set to represent Scotland in the national final of the prestigious 2025 PDA Premier Trophy Awards – Apprentice of the Year Competition.
Ms Gardner secured her place after a successful performance in the Regional Heat held

29/04/2025
Keith Anderson, Chief Executive of ScottishPower, has been named Business Leader of the Year at an awards ceremony held at the EICC in Edinburgh. Mr Anderson was chosen from a shortlist of eight company leaders, including representatives from The Ivy Collection, Greggs, Cazenove Capital, and the Mur

29/04/2025
Significant progress has been made this week on major development plans for the strategically important Hunterston site in North Ayrshire.
Members of the council's Planning Committee approved proposals for the creation of a salmon rearing facility at the location.
The applicants, Bakkafrost Scotl

29/04/2025
The local community in Innerleithen, including pupils from St Ronan's Primary School and local councillors have celebrated the official reopening of the village's play park following significant improvement works.
The much-anticipated upgrades to the facility include extensive drainage work and the

29/04/2025
Craigtoun Country Park, a popular destination near St Andrews, is poised to see a significant upgrade to its beloved Dutch Village situated on the boating lake. The structure is set to undergo essential repairs, including new rendering and roof tiles, thanks to newly secured funding.
Fife Council h

29/04/2025
Residents of the Kirkton area of Dundee are a step closer to a new community centre following the allocation of £1.5 million in funding. The money has been awarded to local charity Kirkton Community Centre SCIO through the UK Government's Community Regeneration Partnership (CRP).
The funding will e

29/04/2025
Gas network operator SGN has been lauded for its exceptional commitment to customer service, securing four prestigious gold awards at the CCA Global Excellence Awards 2025 ceremony held in Glasgow last night. The accolades affirm SGN's position as industry leaders in customer care and innovation.
T

29/04/2025
A collaborative effort involving public, private, and academic organisations has culminated in the launch of a ten-year strategy aimed at fostering sustainable economic growth across the Highlands and Islands. The Highlands and Islands Regional Economic Partnership (HIREP) has unveiled its Regional