07-05-2014

INEOS agreement with Evergas for six state-of-the-art ethane vessels

INEOS Olefins & Polymers Europe has today confirmed that it has reached an agreement with Evergas to expand its contract for a series of state-of-the-art ethane vessels, that are currently under construction in China, to six vessels.

In January 2013 INEOS agreed a 15-year shipping agreement with Evergas for the transportation of ethane into Europe from the US Mariner East project, as the world’s first US ethane export contract.  

INEOS and Evergas have now expanded the agreement to secure additional capacity for long-term shipping of advantageously priced US ethane for INEOS’ European crackers at Rafnes (Norway) and Grangemouth (Scotland).

INEOS will be the first company to establish seaborne intercontinental ethane transportation, having earlier announced agreements with Sunoco Logistics for capacity in the Mariner East pipeline and terminal system, with Range Resources and CONSOL Energy for the purchase of ethane. Evergas will provide customized vessels for the transportation.

The company has also confirmed today that it has reached an agreement with Enterprise Products for ethane capacity at their recently announced ethane export facility on the Texas Gulf coast.

The design and build of highly advanced, sustainable vessels has been an important consideration in supporting INEOS’ competitive business model.  

David Thompson, Chief Operating Officer INEOS Trading & Shipping says: "Having worked successfully with EVERGAS for more than a decade we are very confident that these vessels will provide long term security and competitiveness of our feedstock supplies”.

The new vessels will enter into service in 2015. They are tailored to meet the specific needs of this project and will be built to the latest specifications matching highest environmental and efficiency performance measures. They are the largest, most flexible and advanced multigas carriers yet to be built. They will provide INEOS with a flexible solution for their ethane supplies with the option of transporting LNG, LPG as well as petrochemical gases including ethylene.

Martin Ackermann, CEO of EVERGAS says: “The advanced design of these vessels offers very high efficiency and unparalleled flexibility to INEOS securing the longevity and strong position of their business.”

The dual-fuelled vessels will use clean LNG in state-of-the-art engines securing high efficiency, low emissions and reduced fuel cost.