INEOS mulls EO unit of at least 500,000 tonne/year in US

25 March 2011 19:08  [Source: ICIS news]

HOUSTON (ICIS)--INEOS is considering adding an ethylene oxide (EO) plant of at least 500,000 tonnes/year in the US Gulf coast, as well as the downstream ethylene glycol (EG) and derivative units that could absorb the new unit's production, the company said on Friday.

"The US is an obvious location for INEOS Oxide to consider its next expansion," according to a statement by Hans Casier, chief executive of INEOS Oxide.

"It is a market we know well, where INEOS Group already has a well placed manufacturing presence that is capable of taking full advantage of competitively priced feedstocks," he said.

The advent of shale gas has given the US access to relatively cheap ethane, which it cracks to produce ethylene.

Planning is still early, and INEOS is considering several sites along the US Gulf coast, the company said. INEOS is considering locations in other parts of the world as well.

It should choose a location later this year, the company said.

In other news, INEOS said construction is progressing well at its new 1m tonne/year ethylene terminal at its Zwijndrecht facilities in Belgium. Operations should start in 2012 as planned.

For more on EO or EG visit ICIS chemical intelligence
For more on INEOS visit ICIS company intelligence

By: Al Greenwood
+1 713 525 2645

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