Oiltanking Antwerp Gas Terminal N.V. is pleased to announce the signing of a long-term agreement with INEOS for the storage and handling of Butane that will serve as feedstock for the INEOS cracker in Cologne. The terminal will therefore expand its capacity by almost 100 percent.

As part of the agreement, Oiltanking Antwerp Gas Terminal will make substantial investments to ensure the highest level of operational excellence, including the construction of a 135,000 cbm fully refrigerated butane tank – the largest in Europe.

Similar to the other cracker feedstock, naphtha, which Oiltanking already stores for INEOS under a long term agreement at Oiltanking Ghent, the butane cracker feedstock will arrive at the Antwerp terminal by seagoing vessel (up to VLGC size, Very Large Gas Carriers) for intermediate storage. From there, it will be shipped by barges via the Rhine to the INEOS facility in Cologne. This storage and handling solution will provide INEOS increased flexibility and security of supply enabling INEOS to optimize the related supply chain.

Oiltanking’s acquisition of the Antwerp Gas Terminal last year was part of the company’s pro-active strategic reaction to changing global requirements for energy and feedstocks. Being integrated into the logistical chain of one of the world’s leading chemical companies fits perfectly in Oiltanking’s long term strategic plan.

About Oiltanking Antwerp Gas Terminal N.V.

Oiltanking Antwerp Gas Terminal N.V., a fully-owned subsidiary of Oiltanking GmbH, is located in the port of Antwerp and is one of the largest independent terminals in Europe for storage, throughput and distribution of LPG’s and petrochemical gases.

About Oiltanking GmbH

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.

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.