INEOS invests in gas separation in Norway
INEOS has today announced that the company will take on the full ownership or alternatively a majority share of the gas separation unit in Bamble, Norway assuming successful completion of the acquisitions of the Hydro Polymers and the Borealis AS.
In a meeting with Mr. Odd Roger Enoksen, the Minister of Petroleum and Energy, Jim Ratcliffe, Chairman of INEOS and Tom Crotty, CEO of INEOS Olefins confirmed that the successful completion of the proposed Skanled pipeline from Karsto in Western Norway to Rafnes, which would create the opportunity for enhanced supplies of ethane, would be exploited through investment in a new gas separation unit at the Rafnes site.
“The pipeline and the gas separation unit may double the feedstock supply to the Noretyl cracker at Rafnes which will allow us to examine options for expansion of the ethylene cracker and further development of the petrochemical activities in the region”, says Tom Crotty, Chief Executive Officer INEOS Olefines.
Decisions concerning investments will be made in 2009 with a possible start-up of the pipeline in 2012. Efforts are still needed before a decision can be made to build the pipeline. Gas sales agreements between the companies and the producers of gas need to be established as well as approvals by the relevant authorities. Additional investments to be made by INEOS are conditional upon formal approval for take over of the companies and quality assurance of the work for the gas separation unit so far.