Skanled project to go ahead as INEOS confirms expansion

14 January 2009 15:27  [Source: ICIS news]

Proposed Skanled pipelineLONDON (ICIS news)--Partners in the proposed Skanled pipeline in Norway have decided to push ahead with the under-threat project after INEOS confirmed it would still need long-term ethane supplies for its cracker expansion plans, the pipeline operator said on Wednesday.

The project, which links Karsto in western Norway to the region of Grenland in the south of the country, came under threat when the partners dropped plans to build a gas separation plant at the Grenland terminal.

INEOS said it was still planning to expand its Rafnes, Grenland, cracker by 100,000 tonne/year in the long-term, and welcomed plans to secure deliveries of natural gas into the region.

Germany’s Verbundnetz Gas (VNG) also gave its support to the project, indicating it would buy a 10% stake, restoring full ownership after the withdrawal of energy group Hafslund.

“The clarification at Rafnes and VNG’s intended entry to the project help to reduce its risk” said Thor Lohne, vice president of pipeline operator Gassco.

“However, important clarifications remain to be secured before plans for installation and operation can be submitted to the government,” he added.

In addition to the exit-point in Grenland, the proposed pipeline would also have terminals in Sweden and Denmark, and still requires government approvals in all three countries.

The Skanled group plans to submit its PIO to the Ministry of Petroleum and Energy by 1 April, while the project was expected to begin deliveries to Grenland in 2012.

Chemical companies expected to utilise gas from Skanled include INEOS, Perstorp, Kemira, Eka, Trelleborg and Yara.

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By: Mark Watts
+44 20 8652 3214

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