Propylene consortium plans integrated pipeline

18 September 2000 00:00  [Source: ICB]

A group of leading propylene producers and consumers have joined forces to create an integrated propylene pipeline system in northwest Europe.

The company has been named the European Pipeline Development Company (EPDC) and it is expected to draw up proposals for the pipeline by the middle of 2001.

The 14 shareholding companies will then decide whether to proceed with the project. They are BASF, Bayer, Borealis, BP, Celanese, Condea, DEA, Degussa-Hüls, DSM, Erdolchemie, Elenec, Infraserv, Rutgers and Veba Oel.

The EPDC will be headed by three managing directors enjoying equal status. They are Henk Becker of DSM, Pete Skelley of BP and Rolf Cranick of Degussa.

In preparing the project proposal the EPDC will draw on the experience of the shareholding organisations, engineering companies and independent consultants.

If it goes ahead it is hoped the pipeline will markedly improve the competitive position of propylene markets in northwest Europe compared to the other major regions, and could lessen propylene logistical problems, giving players greater operational flexibility.

Industry would also be able to operate cracker and derivative units at higher utilisation rates, in order to maximise margins. Shareholders also expect to develop new industry along the pipeline.

The pipeline project is supported by both local and national governments in Belgium, the Netherlands and Germany.

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