EPDC presses ahead with NW Europe propylene pipeline

06 July 2004 18:05  [Source: ICIS news]

LONDON (CNI)--European Pipeline Development Co (EPDC) is pressing ahead with construction of a northwest European propylene pipeline network following last month’s clearance from the European Commission (EC) of several national subsidies, CNI learned on Tuesday.

 

EPDC has nominated E.On Engineering to undertake detailed engineering and contract supervision services, following a joint European Union (EU) and German public tendering process.

 

Appointment is dependent on shareholder approval but EPDC confirmed today that E.On has commenced work on the 1m-1.5m tonne/year capacity project.

 

EPDC said it hopes to start construction work in the third quarter this year and to commission the pipeline in sections. Full operations are scheduled for the second quarter of 2007.

 

The common carrier pipeline will run some 400km (250 miles) from Antwerp to Tessenderlo in Belgium, through Geleen in the Netherlands and on to Cologne, Moers, Oberhausen and Marl in Germany. It will transport chemical-grade propylene.

 

In Duisburg, Germany, EPDC will build a barge unloading station with buffer storage to deliver propylene to the eastern end of the pipeline.

 

At the Antwerp end, it will link with 80km of Shell Chemicals’ pipeline that runs into Pernis, Rotterdam, and on which EPDC will lease capacity.

 

Existing independent terminals in Antwerp will be connected to the system to create access to the sea at both Rotterdam and Antwerp.

 

The entire project is estimated to cost Euro200m ($246m), of which some Euro10m has already been spent, said EPDC. Subsidies will provide Euro45m of the capital cost. EPDC confirmed that Euro38m of the subsidies will come from the North Rhine Westphalia region of Germany, Euro4m from Holland and Euro3m from Belgium.

 

Besides subsidies and shareholder investments, Fortis Bank Global Energy Group is providing Euro150m under a 10-year loan facility for construction and operation of the pipeline.

 

Shareholders in EPDC are: BASF, BP Refining and Petrochemicals, Celanese Chemicals Europe, DSM, Sabic Hydrocarbons, Sasol Germany, Shell Nederland Chemie and Westgas (a Degussa subsidiary). Each party owns an equal stake.

 

Within the next six months, EPDC will publicly advertise and invite new investors to join the company as shareholders, as part of the public-private partnership process. 

By: John Baker
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly