INEOS signs agreement to build the largest butane storage tank in Europe
- The tank will allow INEOS to buy butane on the world markets as a raw material for its Köln facility and opens up new trading opportunities for its business across Europe.
- The new 135,000 cbm fully refrigerated tank will be located in Antwerp and is expected to come on stream in 2019.
INEOS has today confirmed it has signed a contract with Oiltanking Antwerp Gas Terminal (OTAGT) to construct the largest butane storage tank ever built in Europe. The new butane tank will be located at the OTAGT terminal in the Port of Antwerp, Belgium.
The tank will allow INEOS to import butane from the USA, and world markets in VLGC carriers (the largest ships possible) to supply competitive raw material to its plants at Koln, Germany. It will also provide INEOS Trading & Shipping with options to trade butane in Europe.
David Thompson CEO INEOS Trading & Shipping said: “This agreement represents a strategic investment in the future of our naphtha crackers in Köln, with potential later to extend supply to our site at Lavéra, at some point in the future. This tank and terminal provides INEOS with increased flexibility and security of supply that will significantly improve our competitiveness in Europe. It also positions INEOS as a major player in Global LPG markets.”
INEOS continues to invest in supply chain flexibility of its European facilities. Today’s announcement builds on its commitment to invest more than $1bn into the supply of ethane from the USA, securing the competitiveness of its gas crackers in Europe, located at Grangemouth, UK and Rafnes, Norway.
The import terminal which is planned to come on stream in 2019 will immediately supply butane into INEOS naphtha crackers at Köln but could open some optionality for at Lavéra, France later.
Richard Longden (INEOS) 0041 21 627 7063 or 0041 7996 26123
Andrew McLachlan (Media Zoo) 020 7384 6980 or 07931 377162
Joseph Wade (Media Zoo) 020 7284 6980 or 07758 074576
Sareen Gosal (Media Zoo) 020 7384 6980 or 07522 490587