04 December 2012 16:30 [Source: ICIS news]
LONDON (ICIS)--INEOS is to move forward with plans to ship US-derived feedstocks to its European operations with the construction of a new ethane tank in Norway, the company said on Tuesday.
The Switzerland-headquartered chemical major has signed a letter of intent with Germany’s TGE Gas Engineering to build the tank and expand related infrastructure at the company’s Rafnes site in Norway, with the facility expected to be operational from the second quarter of 2015.
Work will begin by March 2013 and last for 24 months, according to INEOS.
INEOS inked a 15-year agreement with US-headquartered shale gas producer Range Resources Appalachia in September this year to provide it with ethane for its European operations from the Marcellus shale reserves.
Under the terms of the deal, ethane would be piped from Houston, Pennsylvania, to Marcus Hook, Pennsylvania, using US-based gasoline giant Sunoco’s pipeline transportation and terminal services. The ethane would then be shipped to Europe.
“Competitively priced raw materials are essential if we are to maintain our business,” said Magnar Bakke, site manager, INEOS Olefins & Polymers Norway.
The ethane will supplement existing supplies, and provide an alternative to higher-priced liquid petroleum gas (LPG) feedstocks, the company said.
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