20 November 2017
DETAILS
- INEOS and China’s SP Chemicals agree
long term supply agreement for ethane from US Shale Gas - Agreement includes construction of new carrier ship,
the largest ethane carrier ever built
INEOS has today announced a long-term supply agreement with
SP Chemicals
to deliver ethane from US shale gas to China.
The agreement, which will see US ethane from shale gas
shipped to China for the first time, will supply SP Chemicals
with a long-term competitive supply of ethane for its industrial production.
The deal will involve
the construction of a 95,000cbm capacity ship
which is expected to be delivered in 2019.
Known in the US as
a ‘Very Large Ethane Carrier’ or VLEC
it will be the largest ethane carrier in the world,
and will ship US ethane from shale gas
to SP Chemicals’ new gas cracker facility,
currently under construction in Taixing China.
As with the INEOS Dragon ships,
this vessel will be operated by EVERGAS. It will be the first VLEC
in their fleet of 23 gas ships.
The ship will be built in China
under the management of the JACCAR Group.
Ethane is used to make ethylene
- one of the world’s most important chemical building blocks.
Ethylene is an important raw material used to make products
for a wide variety of industrial and consumer markets
such as transportation, electronics, textile and construction.
David Thompson,
CEO of INEOS Trading and Shipping
”This is another world first for INEOS
after importing shale gas to Europe in 2015.
By bringing in US ethane from shale gas to China for the first time,
we are now leading the way in shipping ethane worldwide
to meet the needs of an expanding chemicals sector.
We are excited to work with a client such as
SP Chemicals and we look forward to
delivering this historic project.”
Chan Hian Siang,
“SP Chemicals is honoured and very happy to work with INEOS,
a first-class global company, to ship ethane
over a journey of more than 18,900 km across the Pacific Ocean
from USA to Taixing City, Jiangsu province, PRC.
It has long been a dream for SP Chemicals to integrate upstream.
SP Chemicals will commission a gas cracker plant in 2019
to produce 650,000 tons per annum of ethylene.
This first long-term supply agreement for ethane with INEOS
will be an important milestone for SP Chemicals
to achieve self-sufficiency for its ethylene requirements.”
Jacques De Chateauvieux,
Chairman of the JACCAR Group
“This Contract illustrates JACCAR’s ability
to offer a comprehensive solution with
type C Tri-lobe VLEC tanks developed by
JHW Engineering and Contracting,
in co-operation with the Hartmann Group
up to the contracting and operating by Evergas.
We feel honoured by the trust of INEOS in us
in delivering and operating
the world’s largest VLEC with type C tanks.”
Steffen Jacobsen,
CEO of Evergas
“We are very pleased to further strengthen our relationship
with INEOS co-operating
on the seabourne transportation of Ethane from the US to China”.
For further information, please contact:
Richard Longden (INEOS) 0041 21 627 7063 or 0041 7996 26123
Mr Lim Lye Hin (SP Chemicals) 0065 6317 0154
Andrew Christian McPhail (Evergas) 0045 3997 0371
WWW.CHEMWINFO.COM BY KHUN PHICHAI
