Firms start work on German propylene pipeline

11 October 2007 19:04  [Source: ICIS news]

TORONTO (ICIS news)--A joint venture of chemical firms has started construction this week on a 60km propylene (C3) pipeline to connect chemicals sites in Germany’s northwest state of North Rhine-Westphalia, the state’s government said on Thursday, adding that there were still opportunities to realise a much larger pipeline project in Northwest Europe.

 

The €60m ($85m) pipeline – funded to the tune of €20m by North Rhine-Westphalia and the European Union - would supply chemical sites at Marl, Gelsenkirchen, Oberhausen, Duisburg und Moers with propylene after completion in early 2009, said Christa Thoben, the state’s economics minister.

 

The line would be a so-called “common carrier” pipeline, meaning that is was open not only to the participating chemical firms but also to other companies, Thoben said.

 

It would help make the state’s many chemicals makers more competitive and open up opportunities for new investments along the line, she said.

 

The project may later be expanded to the Cologne region where many propylene producers and consumers operate, and it offered the chance to still realise a cancelled much larger regional propylene pipeline network, Thoben said.

 

Chemical makers had originally planned a €300m propylene pipeline linking North Rhine-Westphalia with the big chemical sites on the Belgian and Dutch coasts.

 

That project was cancelled earlier this year due to spiralling steel and construction costs, dealing a significant blow to northwest Europe's petrochemicals infrastructure.

 

Construction and operations of the 60km-line are handled by PRG Propylen-Pipeline Ruhr GmbH, a company founded by a number of chemical firms, including SABIC and Sasol. 

 

($1.00 = €0.71)

By: Stefan Baumgarten
+1 713 525 2653

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