18 September 2007 18:23 [Source: ICIS news]
The cracker would have been the first new ethylene plant to have been built in Europe for many years.
Capital costs for the project had risen by more than 30% in the past 12 months alone, making the project in its current form economically unviable, INEOS said.
INEOS said the project could not be achieved “at any cost” without giving details. Previous reports had put the cost of the project at more than €1bn ($1.4bn).
“The decision that has been made recognises the significant impact of higher capital costs on the viability of this particular project,” it said in a statement.
“This is clearly disappointing for INEOS, the City of ?xml:namespace>
Considerable resources had been devoted to the project since original agreements were made in August 2005, which INEOS did not quanitfy.
A gas separation unit was to be constructed by Statoil and E.ON Ruhrgas in
INEOS planned to invest further in the chlor-alkali facilities at
An ethylene pipeline was also to be built linking the plant to the ARG ethylene pipeline in North Rhine-Westphalia.
INEOS said it remained committed to the growth of all its core businesses and to expansion in
INEOS currently is awaiting approval from the European Commission for its planned close-to-$1bn purchase of the former Norsk Hydro petrocehmical business Kerling in
Its decision not to go ahead with the
Ethylene producers have, however, been lifting ethylene production capacity at existing plants sharply in 2007 to meet expanding demand.
European ethylene demand is growing at a small multiple of gross domestic product.
INEOS was due to add 100,000 tonnes of capacity at its production site at
($1 = €0.72)
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