05 December 2005 00:01 [Source: ICB]
The propylene pipeline project in north west Europe may be delayed, as estimated costs have soared by 50% to €300m (ECN 18 April).
Bas Kostering, marketing director for olefins and intermediates at Sabic Europe, one of the project partners, said costs must drop to €230-250m to make it viable.
Kostering said that strong competition for construction and engineering expertise as well as higher equipment and raw material prices, particularly steel, were behind the spiralling cost projections which had an initial budget of €200m.
The partners are re-evaluating, which could delay the project by up to two years from its 2007-08 start-up date.
Sabic Europe said at least one of the seven partners was reconsidering support. The other backers are BASF, Celanese, Degussa, DSM, Innovene, Sasol and Shell.
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