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  • moneyonomics moneyonomics Mar 8, 2013 3:05 PM Flag

    INEOS press release on new ethane tank/cracker and Marcos Hook/Mariner East/Range deal chrx referred to

    NEOS Europe and Evergas enter into long-term shipping agreements

    23 January 2013

    INEOS Europe has entered into 15-years shipping agreements with Evergas for the transportation of ethane into Europe from the US Mariner East project.

    Under the agreements, Evergas will build and operate new customised vessels that will be dedicated to the transportation of ethane from Marcus Hook, US to Rafnes, Norway.

    These new agreements follow the recent completion of supply and infrastructure agreements by INEOS, to access ethane feedstocks from the US for use in its European cracker complexes and the announcement of the construction of a new ethane tank in Rafnes.

    The new vessels, that will enter into service in 2015, are tailored to meet the specific needs of this project and will be built to the latest specifications matching highest environmental and efficiency performance measures.

    David Thompson, Procurement & Supply Chain Director at INEOS Olefins & Polymers North said: "These shipping agreements are the final piece of the Mariner East Project, allowing INEOS to import competitively priced ethane to our Rafnes cracker from the US. Evergas' proposed solution matches perfectly our needs and offers innovative solutions such as the dual-fuel capability. We look forward to a mutually successful long-term relationship"

    Martin Ackermann, CEO of Evergas said: "A strong commercial relationship, an open mind and a willingness to look to the future by INEOS has been imperative in developing innovative and technically advanced vessels that will offer safe, flexible, green and efficient transport solutions to the benefit of all involved parties."

    The shipping agreement with Evergas follows a number of well timed investments by INEOS that will help secure a significant volume of ethane feedstock from the US, for use in its European cracker complexes.

    On 26th September 2012, INEOS Europe announced that it had completed supply agreements with Range Resources for the lifting, of ethane from the Marcus Hook Facility from 2015. At the same time INEOS finalised Pipeline Transportation Services and Terminal Services Agreements for the shipping of ethane from Houston, Pennsylvania, to Marcus Hook, Pennsylvania, with subsidiaries of Sunoco.

    On the 4th December 2012 INEOS also confirmed that it will invest in the construction of a new ethane tank at its Rafnes site in Norway. An EPC contract with TGE Gas Engineering for the construction of a new tank and expanded infrastructure has been signed, and the facilities will be commissioned in 2015. Construction work has already started.

    The ethane imported from the US will allow INEOS to enhance the competitiveness of its business in world markets and as a consequence, secure the long term future of its sites in Europe.

    ENDS