Borealis pushing ahead on US ethane import plan
Navigator Holdings will undertake the shipping of ethane from the US, with the construction of a new vessel underway, the Vienna-based company said in a statement.
By ANDREW NOEL
Borealis, an Austrian petrochemical
by Abu Dhabi, signed a long- term ethane supply contract with
Antero Resources as it pushes ahead with a plan to import
cheaper US feedstock
for its plant in Sweden.
Navigator Holdings will undertake the shipping of ethane from
the US, with the construction
of a new vessel
underway, the Vienna-based company said in a statement.
Borealis steam cracker in Stenungsund will see a
multi-million investment to upgrade the facility and the construction
of an ethane storage
tank, it said without giving further details.
We need to take advantage of the significant shift in
ethane availability triggered by the US shale gas boom,
Borealis CEO Mark Garrett said in the statement. In an
increasingly challenging environment
, this is an exciting
opportunity to increase the competitiveness of our integrated
Borealis is joining INEOS, Europe
s other owner of
flexible crackers that can operate on ethane rather than
naphtha, in tapping cheap feedstock
from the US Marcellus
and Utica shale formations as North Sea energy supplies wane.
A rennaissance in the US chemical industry, fueled by shale,
and increased production in the Middle East and China poses a
threat to Europe
an plants. While BASFs
are fully integrated
into its naphtha cracker, helping maximize efficiency,
plants will face the
greatest cost presssure.