Statoil to supply ethane for Borealis steam cracker
Borealis and Statoil have renewed the contract for the supply of ethane from Statoil’s gas plant at Karsto, which will secure a significant volume of ethane to Borealis’ cracker in Stenungsund, Sweden.
STAVANGER Borealis announced a new long-term agreement
to source ethane from Statoil for its flexible steam cracker
in Stenungsund. This contract will continue to provide
Borealis with an attractive source of feedstock
for its petrochemical
Borealis and Statoil have renewed the contract for the supply
of ethane from Statoils gas plant at Karsto which will
secure a significant volume of ethane to Borealis
cracker in Stenungsund for the coming years.
The ethane supply has been agreed at competitive terms for
both parties, taking into account the global change of the
ethane market due to the availability of United States shale
gas. The new contract will start in October 2015 and last for
a period of 7 years.
The renewal of the ethane supply contract with Statoil shows
the value of our long term partnership, explains Mark
Garrett, Borealis CEO. This new contract will secure
that our Stenungsund petrochemical
complex will stay
ahead of the curve in an increasingly competitive environment
for the Europe
Borealis cracker in Stenungsund is one of the most feedstock
flexible crackers in Europe
. Apart from ethane it can
also crack naphtha, propane and butane. Stenungsund has
significant LPG storage capacity, allowing the company to
source LPG from various sources with vessel sizes up to very
large gas carriers.