INEOS to invest €2.7B in new European Chemical Complex
INEOS has approved a €2.7 billion capital project to build both a world-scale ethane cracker and a PDH (Propane Dehydrogenation) unit in Northern Europe. Both units will benefit from US shale gas economics.
This will be the first new cracker built in Europe for two decades. It will also be one of the most efficient and environmentally friendly plants of its type in the world.
The location of the site will be determined soon and it is likely to be on the coast of North West Europe. A project team has been assigned to consider options and the project is expected to be completed within four years.
“This new project will increase INEOS self-sufficiency in all key olefin products and give further support to our derivatives business and polymer plants in Europe. All our assets will benefit from our ability to import competitive raw materials from the USA and the rest of the world," Gerd Franken, Chairman INEOS Olefins and Polymers North said.
This new investment follows a decision taken by INEOS last year to increase the capacity of its existing crackers.
“INEOS is going from strength to strength. This new investment builds on the huge investment we made in bringing US shale gas to Europe and will ensure the long-term future of our European chemical plants," Jim Ratcliffe adds.
PCI WoodMac: INEOS chemicals investment good news for European olefins long-term outlook
Commenting on the announcement that INEOS has approved a €2.7 billion capital project to build both a world-scale ethane cracker and a PDH (Propane Dehydrogenation) unit in Northern Europe, Patrick Kirby, PCI Wood Mackenzie Principal Analyst, said:
"This major investment undertaken by INEOS highlights their commitment to, and confidence in, the long-term outlook for the European olefins industry.
"Within the last decade, the region has moved from protectionism and consolidation to collaboration and growth. The region continues to successfully reinvent itself as global opportunities present themselves. Strong margins and profitability in the last 3-4 years have encouraged companies to look confidently into the future. There are now
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