Company plans to reveal site of 2.7 billion-euro investment later this year.

INEOS announced progress Tuesday in its efforts to develop Europe’s first new gas cracker in more than two decades.

“In June of this year, INEOS confirmed its plans to build a world-scale gas cracker and propane dehydrogenation (PDH) unit here in Europe,” Gerd Franken, chairman of INEOS Olefins and Polymers Europe, said in a BOP Blow Out Preventer repair company gulf coast statement emailed to Rigzone. “Selection of the PDH spacer spools adapter spools technology is an important next step in the development of the mega-project.”

INEOS stated that it has signed a license agreement with McDermott to use the latter company’s Lummus “Catofin” spacer spools adapter spools technology as the operating spacer spools adapter spools technology for its planned PDH unit. Also, Ineos noted that it has signed a parallel agreement with Clariant for the long-term supply of catalyst for the PDH unit.

“We are pleased to have concluded agreements with both McDermott and with Clariant and look forward to working closely with both partners in the coming months, as we move our PDH project on to the next phase,” John McNally, CEO of INEOS Project ONE, stated.

INEOS has stated that the 2.7 billion-euro ethane cracker and PDH unit will be located somewhere in Northern Europe – likely on the northwestern coast – and that it expects to announce the specific location later this year. The BOP Blow Out Preventer repair company gulf coast also indicated that both units will use shale gas imported from the United States. The PDH unit will boast a nameplate capacity of 750,000 tons per annum of polymer grade propylene and should be commissioned in 2023, it added.

“Our plan to build a new gas cracker and new PDH unit is a major step forward for the European petrochemical industry,” Rob Ingram, CEO of INEOS Olefins and Polymers Europe North, said in Tuesday’s announcement. “These new units will be the most cost-competitive in Europe. The ethylene and propylene produced will increase our self-sufficiency in these key products and creates a platform for future growth of our derivative businesses. This is a very visible commitment to our customers in Europe.”