Evergas has reached an agreement with INEOS to expand its new-building series of ethane/multigas vessels from six to eight units. In January 2013, Evergas announced for the first time that it had secured shipping agreements of up to 15 years with INEOS for the worlds’ first transatlantic shipments of ethane with commencement in 2015.
The fleet of eight vessels will bring US ethane from shale gas to INEOS’ manufacturing sites in Grangemouth, Scotland and Rafnes, Norway. This advantageously priced feedstock will have a highly positive impact for the company’s European operations that so far have relied on declining and expensive volumes from the North Sea. Furthermore it will support the company’s longevity of being a leading and cost-efficient petrochemical producer. INEOS will source its ethane feedstock from Marcus Hook and Houston, USA.
Bringing competitiveness to Europe
The increased volumes of the cost-efficient US ethane feedstock will be paramount for INEOS in order to support its competitive business model. David Thompson, COO INEOS Trading & Shipping says: “The increased ethane volumes, lifted on the expanded Evergas Dragon fleet will provide us with long term security & flexibility, cost efficiency of our feedstock supplies, and importantly support the company’s competitiveness in Europe”.
Long-term partnership
These vessels are the largest, most flexible and advanced multigas carriers yet to be built, securing INEOS with a highly flexible solution for their ethane supplies, yet at the same time providing the benefit of transporting LNG, LPG as well as petrochemical gases including ethylene. Martin Ackermann, CEO of EVERGAS says: “We are delighted that INEOS have decided to expand the Dragon series of our innovative and technically advanced vessels. They have been specifically designed and tailor-made for the transatlantic trade, and the order expansion clearly shows INEOS’s belief in our partnership, and the long term sustainability of this endeavor”. The dual-fuelled vessels are built to match the highest environmental-n efficiency performance levels securing ultra-low emissions and reduced transportation cost.
Gas fueling the future
A relentless increase in the world’s demand for energy and with gas rapidly replacing other fossil fuels in the global energy mix the demand growth for marine gas transportation is expected to be strong in the years ahead. Demand growth is further spurred by significant demand for shale gas driven transportation, demand or gas as a marine fuel and development of short-haul marine redistribution networks. It is the clear strategy of Evergas to further develop and grow its presence within marine transportation of natural gas liquids for use as industrial feedstock and source of energy.
