Issued by the UK Government, the loan guarantee will enable Ineos to raise the funds necessary to invest in a new terminal import, to store and process ethane from shale gas at its site.
The loan guarantee also marks the UK’s support for petrochemicals sector and for one of the most important infrastructure projects in Scotland.
Ineos 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."
Treasury chief secretary Danny Alexander said: "More than £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.
"The Grangemouth guarantee is fantastic news for Scotland’s economic future and for the UK’s energy security."
Turning Grangemouth into a shale gas-based facility by 2016 is essential to compete in world markets beyond 2017.
Additionally, Ineos O&P UK signed contract agreements with TGE Gas Engineering for the construction of the largest ethane storage tank in Europe.
