INEOS has confirmed it has signed a contract with Oiltanking Antwerp Gas Terminal (OTAGT) to construct the largest LPG storage tank ever built in Europe. The new butane tank will be located at the OTAGT terminal in the Port of Antwerp, Belgium.

The 135,000 cbm fully refrigerated 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.

About INEOS

INEOS will be the sole operator of the three licenses awarded today. Shale gas extraction has transformed communities in the USA where landowners own the mineral rights under their property. INEOS has developed an industry leading community benefits package that seeks to replicate this, giving communities a real stake in development. INEOS has promised to share 6% of revenues. Four percent of this would go to homeowners and landowners in the immediate vicinity of a well, and a further 2% to the wider community. Based on our estimates, a typical 10km by 10km development area would generate £375m for the community over its lifespan. Overall we anticipate that our future shale gas business could contribute over £2.5bn to communities under this scheme, having a material impact on regional economies and the standard of public services.

INEOS recognises that shale gas extraction is a controversial issue and communities have understandable questions about the potential risks and rewards. We will engage comprehensively and openly with communities at every stage to accurately convey the risks and rewards, so they can make an informed judgment about extraction. It is the view of mainstream scientific authorities such as the Royal Society and Royal Academy of Engineering that shale gas can be extracted safely with appropriate regulation, and there could be real benefits from doing so, including jobs, tax revenue, local investment and improved energy security. It is vital to have a thorough and evidence-based conversation to ensure this opportunity is considered properly.

About Oiltanking

Oiltanking GmbH is a subsidiary of Marquard & Bahls, a Hamburg-based family-owned company that operates in the fields of energy supply, trading and logistics. Oiltanking is the second largest independent tank storage provider for petroleum products, chemicals and gases worldwide. The company owns and operates 81 terminals in 23 countries within Europe, North and South America, Middle East, Africa, India as well as in Asia. Oiltanking has an overall storage capacity of 21 million cbm.