UK-based petrochemical giant, INEOS, said Monday it will deliver the first-ever ethane cargo produced from U.S. shale gas into China in 2019, following a long-term supply agreement inked with China’s SP Chemicals, Kallanish Energy reports.
The deal includes the construction of a 95,000-billion-cubic-meter (Bcm) ethane carrier, expected to be the largest of its kind in the world. The very large ethane carrier (VLEC) will deliver ethane to SP Chemical’s new cracker facility under construction in Taixing, in the eastern-central coast of China.
”This is another world first for INEOS after importing shale gas to Europe in 2015,” said David Thompson, CEO of INEOS Trading and Shipping. “By bringing in U.S. ethane from shale gas to China for the first time, we are now leading the way in shipping ethane worldwide to meet the needs of an expanding chemicals sector.”