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European pipeline

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        EU approves state aid for Bavarian ethylene pipe

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    EPDC cancels European propylene pipeline project on high costs

 


Ethylene Pipeline Company ARG

2002/9/30 BP/BASF/Sasol

BP meets EC Undertaking and sells ARG to BASF And Sasol
http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=2001329

BP announced today that it has sold two of its shareholdings in the ethylene pipeline company, Aethylen Rohrleitungs Gesellschaft mbH & Co. KG (ARG). The shareholdings have been sold in separate transactions to BASF Aktiengesellschaft and Sasol Germany GmbH.

Financial details of the transactions, which were completed today, are not being disclosed.

The sale of two of the three shareholdings in ARG held by BP and Veba Oel was one of the conditions attached to the European Commission's clearance of
BP's acquisition of Veba Oel. The sales of the shareholdings have been approved by the other ARG shareholders and the European Commission.

BASF operates steamcrackers at its Verbund sites in Ludwigshafen, Germany, and Antwerp, Belgium, with a total ethylene capacity of 1.4 million tonnes a year. Both BASF sites are integrated into the Northwest European ethylene pipeline grid where the ARG forms the integral part. The acquisition offers BASF the opportunity to further optimize operations across Europe. Ethylene is one of the core starting materials within BASF to manufacture a wide range of higher-value chemicals, solvents, dispersions and polymers. BASF today is also a seller of ethylene to external markets.

Sasol Germany is a chemical company with five production sites located in Brunsbuettel, Herne, Marl, Moers, and Witten. Two of them are linked to the ARG system. Ethylene is an important feedstock for Sasol Germany. It is used for the production of fatty alcohols, ethylene oxides, ethanol, and inorganic specialities like high purity aluminas. The acquisition strengthens the ethylene supply basis for Sasol Germany.

ARG was founded in 1969 by BP, Huls, Erdolchemie, Bayer, DSM and Scholven-Chemie. The 495 km ARG pipeline transports ethylene between producers and consumers at petrochemical sites in Germany, Belgium and the Netherlands. It is an important facility for the European petrochemical industry, linking directly or indirectly almost half the ethylene production capacity in Europe and 90 per cent of the capacity in Belgium, Germany and the Netherlands.

The ARG shareholders are now:
Westgas GmbH & Co KG; Bayer AG; DSM Hydrocarbons B.V.; Sasol Germany GmbH; BASF AG; and BP (in the name of Veba Oel Refining & Petrochemicals). BP will thus continue to hold one of the six shareholdings in ARG.

Common ethylene pipeline grid and logistics

In 1968 developments in the ethylene market led to the setting up of the Ethylene Pipeline Company ARG, which immediately began work on the construction of a common ethylene pipeline grid.

Today the pipeline network has a total length of more than 490 km and runs from the Antwerp region in Belgium to the north of the Ruhr area in Germany.

The shareholders now all holding a sixth of ARG are Westgas GmbH & Co, Bayer, DSM Hydrocarbons(now SABIC Hydrocarbons BV), Sasol Germany, BASF and BP, which holds its stake through its Veba Oel Refining and Petrochemicals unit.

 

Port Range Antwerp- 2004/3

New ARG ethylene line fee structure needed

A simple fee structure for Europe
s ARG (Aethylen Rohrleitungs Gesellschaft) ethylene pipeline system was proposed here Tuesday by Mike Smith, commercial director of Belgian polyvinyl chloride (PVC) producer LVM.

Smith said that the ARG is too expensive and restrictive, and that the proposed solution would offer significant fee reductions for volumes and distances shipped on an annual basis.

The basic tariff to send one tonne of ethylene over 50 kilometres (31 miles) is currently almost Euro30. Significantly lower rates can be obtained, but with restrictions; for example, 200 000 tonne/year for six years. He proposed
expanding the ARG to bring all the attached ethylene pipeline systems into the ARG in return for a participation in the company.

These pipelines could include the
Shell pipeline connecting Rotterdam with Antwerp, the FAO pipeline in Antwerp, the NSM pipeline connecting Antwerp with Feluy, Belgium, the Solvay pipeline to Jemeppe in Belgium, and the InfraServ and BASF pipelines in Germany, he suggested


2004/8/26                        Operator=Sabic Pipeline

PRG Pipeline Company Established
Contributes to Strengthening of Local Economy.
http://www.chemsite.de/englisch/news/20040826leg.htm

Agreements signed today by LEG Stadtentwicklung and chemical industry

With the signing of partnership agreements,
PRG Propylenpipeline Ruhr GmbH was officially established in Düsseldorf, Germany, today. The company's founding represents a major step forward for a key infrastructure project: PRG will construct a new pipeline in Germany's North Rhine-Westphalia (NRW) state to connect the Ruhr region with Rotterdam.

LEG Stadtentwicklung GmbH & Co. KG and European Pipeline Development Company (EPDC) hold interests in PRG of 50.2 percent and 49.8 percent respectively. LEG Stadtentwicklung GmbH & Co. KG is a wholly owned subsidiary of LEG NRW GmbH. Eight chemical companies interested in using the pipeline are partners in EPDC.

"Our stake in the company is an important contribution toward strengthening the local economy of North Rhine-Westphalia," said Dr. Rolf Heyer, General Manager of LEG Stadtentwicklung GmbH & Co. KG, on the occasion of the contract signing. Henk Becker, General Manager of EPDC, described the formation of PRG as a "successful example of public-private partnership."

The state government of North Rhine-Westphalia had invited LEG to join PRG as majority shareholder - the participation of LEG Stadtentwicklung GmbH & Co. KG, a public-sector company, will allow the project to receive support in the form of EU and state funds. The project involves an investment of approximately euro200 million, with around euro 40 million in development assistance being provided by the state of North Rhine-Westphalia and the European Union.



European Pipeline Company BV(EPC), a consortium of companies in the chemical industry. Its predecessor was European Pipeline Development Company (EPDC).

The shareholders are BASF AG, Celanese Chemical Europe GmbH, Shell Nederland Chemie BV, DSM NV, Rutgers Chemicals AG, Sasol Germany GmbH, Veba Oil Refining & Petrochemicals GmbH, Westgas GmbH and SABIC Europe.

The consortium owns the Dutch assets, 100 % of the Belgium asset management company, EPDC Flanders NV, and 49,9 % of the German asset management company, Propylenpipeline Ruhr GmbH (PRG). Landesentwicklungsgesellschaft Nordrhein-Westfalen (LEG) owns the remaining 50,1 % but is not liable for any financial obligation beyond its participation in the companys capital.

EPC and the Belgian and German asset management companies together established a joint venture, European Pipeline Administration Company (EPAC), that will be responsible for managing the entire pipeline.


2007/2/26 Platts

EPDC cancels European propylene pipeline project on high costs

The European Pipeline Development Co will not be pursuing plans to build a new propylene pipeline connecting the ports of Rotterdam and Antwerp with the German Ruhr area, due to escalating costs, the EPDC said Monday.


EPDC BV was founded in 2000 with the purpose of developing a 500 kilometers (311 miles) propylene pipeline to connect the Rotterdam/Antwerp are with the Germany's Ruhr valley in Nord Rhine-Westphalia.

The share holders of EPDC BV are: BASF AG, Celanese Chemicals Europe GmbH, Koninklijke DSM NV, Ineos Manufacturing Deutschland GmbH, SABIC Petrochemicals BV, Sasol Solvents Germany GmbH, Shell Nederland Chemie BV and Westgas GmbH.


2005/4/11 JEC

SABIC Pipelines and Infracor to manage new propylene pipeline
http://www.jeccomposites.com/composites-news/473/SABIC-Pipelines-and.html

SABIC Pipelines, the operator of the northern European ethylene pipeline grid, is to manage a new propylene pipeline in association with Infracor, a German company. The European Pipeline Development Company (EPDC) selected the Dutch-German consortium as having submitted the best bid in its EU tendering procedure.

Like the existing ethylene pipeline, the new propylene pipeline will link the ports of Rotterdam and Antwerp with a number of key industrial areas
in Belgium, the Netherlands and Germany, including the Ruhr industrial region. Infracor will manage and maintain the German section of the pipeline, whilst SABIC Pipelines will be responsible for the Dutch and Belgian sections. SABIC Pipelines will also be responsible for operating the pipeline from a central control room.

Ethylene and propylene are vital raw materials for the chemical industry, and the pipeline grids carrying the two compounds link both manufacturers and customers. "The current ethylene pipeline grid
ARG, which was built more than 35 years ago, has given a tremendous boost to the growth of the chemical industry along its entire route," says Rudi Demeuse, the Managing Director of the EPDC. "The new propylene network is likely to have the same effect."

Demeuse believes that it was not just a reputation for safe and reliable pipeline management that lay behind the selection of SABIC Pipelines and Infracor. Demeuse: "The new propylene pipeline will run alongside the existing ethylene pipeline. This means that SABIC Pipelines and Infracor are already familiar with local stakeholders, and vice versa. In order to operate a pipeline reliably, it is absolutely vital to maintain close and harmonious relations with all the relevant land-owners and other stakeholders."

Although the EPDC is a partnership consisting of eight chemical producers, including SABIC itself, other companies will also be free to make use of the propylene network.

Joop Wessels, the Managing Director of SABIC Pipelines, is delighted with the new contract. "One of the main arguments in our favour was the fact that we already had a well-established, successful partnership with Infracor, together with whom we've operated the ARG ethylene pipeline grid safely for 35 years now. Our selection by the EPDC goes to show just how important this is."

Dirk Jedziny, the Managing Director of Infracor, stresses the importance of the propylene pipeline for the Ruhr industrial region. "The chemical industry can grow only if it is guaranteed an uninterrupted supply of raw materials. Our pipelines are the industry's arteries."

SABIC Pipelines
SABIC Pipelines BV (based in Urmond, the Netherlands) is a wholly-owned subsidiary of
SABIC Europe. It operates pipelines for transporting naphtha (PAL), ethylene (ARG) and monovinyl chloride on behalf of a range of chemical companies. It employs a workforce of 57.

Infracor
Infracor GmbH (Marl, Germany),
a wholly owned subsidiary of Degussa AG, has been operating the Marl Chemical Park for eight years and is one of the few service-providers in the sector to offer the entire range of services required to operate chemical process plants from a single source. Its services include energy and utilities, waste management, technical plant management and maintenance operations, logistics, telecommunications and IT services, environmental protection, plant safety, occupational health and safety as well as facility management, PR & communication.

The Marl Chemical Park covers an area of around 6.5 square kilometers and is one of the three large chemical sites in Germany. Over 10,000 employees are employed at the Park in 31 companies.

European Pipeline Development Company
The European Pipeline Development Company BV (EPDC) is a Dutch company whose shareholders are eight large chemical manufacturers based in northwest Europe. Its object is to build and operate a common-carrier network of propylene pipelines linking the industrial centres of Rotterdam, Antwerp, Tessenderlo, Geleen, Cologne, Wesseling, Duisburg and Marl. With a total length of around 500 km, the network is set to cost a total of Euro200 million. The EPDC is based in Venlo, the Netherlands.


Brussels, 12th October 2006

State aid: Commission endorses support of up to Euro45 million for Bavarian ethylene pipeline

The European Commission has approved under EC Treaty state aid rules (Article 87) a direct subsidy that the German Land of Bavaria intends to grant to
EPS (Ethylene Pipeline Sud GmbH & Co. KG), a consortium of German petrochemical companies, for the construction of an ethylene pipeline. The planned aid amounts to 29.9% of the total eligible costs of the investment, up to a maximum aid level of Euro 44.85 million. The Commission considers that this project is an important step towards the realisation of a pan-European ethylene pipeline network, but does not unduly distort competition.
EU Competition Commissioner Neelie Kroes said:
The Bavarian pipeline will constitute an important link between existing networks in Western Europe and inland islandsin Central Europe. Now, that Germany has agreed to reduce the aid level from 50% to 30%, I am satisfied that the advantages of the aid will outweigh a possible distortion of competition. Even aid which is granted for a valid objective should be limited to what is strictly necessary.

In January 2005, Germany notified the intention of the Land of Bavaria to support with Euro70 million the construction of an ethylene pipeline by the EPS consortium. The total construction cost was evaluated at Euro140 million. The Commission decided in March 2005 to launch an in-depth investigation to establish whether this grant was compatible with EC Treaty state aid rules (see IP/05/344). The Commission doubted whether the aid measure struck the right balance between the common European interest in the project and the distortion of competition to the detriment of the chemical industry in the rest of the EU, since the aid appeared to benefit primarily the petrochemical industry in Bavaria.

The German authorities, supported by the industry, pointed out that the Bavarian pipeline would form a crucial connection
between existing networks and various islands of industry, as well as between Western Europe and further pipelines in Central and Eastern Europe. They also presented a revised project with a lower aid amount (Euro44.85 million for revised investment costs of Euro150 million) and intensity (maximum 29.9%). The Commission further took into account that the pipeline will be operated in compliance with the principles of common carrier, open access, non-discrimination and minimum profit.

The project relates to a
357km long pipeline for the transport of ethylene between Ludwigshafen (Rheinland-Pfalz) and Munchsmunster (Bavaria). Ethylene is a highly hazardous olefin gas derived from petroleum and used for the production of polymers and, subsequently, plastics. The beneficiary of the grant will be Ethylene Pipeline Sud GmbH & Co. KG, a consortium of BASF AG, Borealis Polymere GmbH, Clariant GmbH, OMV Deutschland GmbH, Ruhr Oel GmbH, Vinnolit Gmbh&Co KG and WACKER Chemie GmbH, which are all active in Bavaria.

バヴァリア(Bavaria)はバイエルン自由州(Freistaat Bayern)の英語名(イタリア語・スペイン語・ラテン語でも同形)

Borealis PolymereIPIC(Abu Dhabi) 65%/OMV(Austria) 35% Munich in Burghausen,  PE, PP
Clariant Produkte (Deutschland) GmbH
Gersthofen
Ruhr Oel (BP) operates the plants at the Scholven(ドイツ西部) and Munchsmunster (Bavaria) sites.
WACKER
Burghausen plant
Vinnolit Gmbh&Co KG:@Gendorf plant, A on the premises of Wacker Chemie AG Burghausen plant