Statoil to supply ethane for Borealis steam cracker
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 complex in Stenungsund.
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 European industry.
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.
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