EPCA ’14: Borealis to begin ethane imports to Sweden in Q3/Q4 ’16

VIENNA (ICIS)–Borealis will start importing ethane to its steam cracker in Stenungsund, Sweden in the third or fourth quarter of 2016, Markku Korvenranta, the company’s executive vice president for base chemicals, said on Tuesday.

Korvenranta was speaking on the sidelines of the 48th European Petrochemical Association (EPCA) meeting.

Borealis announced in August that it signed a 10-year agreement with US-based Antero Resources for the supply of ethane to Borealis’s steam cracker in Stenungsund.

At the same time, Borealis said it also signed a shipping agreement with Navigator Holdings, and announced a “multi-million” investment for the upgrade of the Stenungsund cracker and the construction of an ethane storage tank.

“Looking at the price difference [of ethane]… it [is] very attractive even with transportation costs. But you need to have the right conditions for it – you need a cracker that can handle light feeds and have to be coastally located, and with our Stenungsund these things came together,” Korvenranta said.

Antero Resources will supply ethane from its extractions at the Marcellus and Utica shale formations in northeastern US. For transport of the material, Borealis has signed an additional agreement for fractionation, pipeline and terminal services with Sunoco Logistics.

Borealis also announced it will upgrade its flexible steam cracker where the ethane will be shipped to. The upgrade will also include the building of a new ethane tank, which will be constructed by TGE Gas Engineering after a lump-sum turnkey agreement was signed with the German services company. 

The annual EPCA meeting continues through Tuesday.

Additional reporting by Jonathan Lopez