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Released July 06, 2022 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Petrochemical major INEOS Group AG (London, England) has pulled the plug on a five-year-old plan to build a vinyl acetate monomer (VAM) plant in Saltend, Hull, England.
The news comes as INEOS turns its eyes to the U.S., announcing that it has started a feasibility study for the construction of a "world-scale" plant for the production of acetic acid and derivatives in the U.S. Gulf Coast. In a statement, it said: "As part of the strategic review INEOS will not proceed at present with the previously announced VAM plant in the U.K. given the volatile and uncompetitive energy costs outlook." A final investment decision is expected before the end of 2023.
The Hull plant would have produced 300,000 tonnes of vinyl acetate monomer per year--a key component in the manufacture of windscreens, toughened glass, adhesives, coatings, films, textiles and carbon fiber. To be located at the company's existing Hull facilities it would have required an investment of £150 million (US$184 million). INEOS had a VAM plant at Hull until 2013 when it was shut down for reasons including "low cost imports and a hostile trading environment." In 2020, INEOS spent £4 billion (US$4.9 billion) to acquire BP's global Aromatics and Acetyls business, including its operations at Saltend in Hull. That business consists of 15 sites across the world (five in the Americas, two in Europe and eight in Asia) as well as 10 joint ventures.
Talking up the U.S. project, David Brooks, chief executive officer of INEOS Acetyls, said: "The Gulf Coast is a location well known to the INEOS group where we already have a significant presence. With its abundance of competitively priced feedstocks, the area offers a competitive advantage to support the continued global growth and customer demand for Acetyl products."
The company has also announced its entry into the global liquefied natural gas (LNG) sector by inking a deal with U.S. supplier Sempra Energy (NYSE:SRE) (San Diego, California) for the potential supply of 1.4 million tonnes per annum of LNG from North America for 20 years. The INEOS deal will secure enough for its own needs and allow it to supply other businesses. "This agreement represents a major step forward in the INEOS Energy journey, at a time of significant transformation in the energy industry," commented Brian Gilvary, chairman of INEOS Energy. "Our entry into the global LNG market opens new opportunities to supply affordable, clean and reliable energy to the market. Long term supply from INEOS Energy will help alleviate the structural energy issues in Europe."
Industrial Info reported recently on how Europe, thanks to Russia's invasion of Ukraine and its throttling of gas supplies, imported a record amount of LNG in April 2022, averaging 16.5 billion cubic feet per day (Bcf/d). According to a report on the U.S. Energy Information Administration (EIA) site, from January through May, LNG imports into Europe averaged 14.9 Bcf/d, which is 5.9 Bcf/d (66%) more than the annual average in 2021. For additional information, see June 15, 2022, article - Europe Imports Record Amounts of U.S. LNG.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The news comes as INEOS turns its eyes to the U.S., announcing that it has started a feasibility study for the construction of a "world-scale" plant for the production of acetic acid and derivatives in the U.S. Gulf Coast. In a statement, it said: "As part of the strategic review INEOS will not proceed at present with the previously announced VAM plant in the U.K. given the volatile and uncompetitive energy costs outlook." A final investment decision is expected before the end of 2023.
The Hull plant would have produced 300,000 tonnes of vinyl acetate monomer per year--a key component in the manufacture of windscreens, toughened glass, adhesives, coatings, films, textiles and carbon fiber. To be located at the company's existing Hull facilities it would have required an investment of £150 million (US$184 million). INEOS had a VAM plant at Hull until 2013 when it was shut down for reasons including "low cost imports and a hostile trading environment." In 2020, INEOS spent £4 billion (US$4.9 billion) to acquire BP's global Aromatics and Acetyls business, including its operations at Saltend in Hull. That business consists of 15 sites across the world (five in the Americas, two in Europe and eight in Asia) as well as 10 joint ventures.
Talking up the U.S. project, David Brooks, chief executive officer of INEOS Acetyls, said: "The Gulf Coast is a location well known to the INEOS group where we already have a significant presence. With its abundance of competitively priced feedstocks, the area offers a competitive advantage to support the continued global growth and customer demand for Acetyl products."
The company has also announced its entry into the global liquefied natural gas (LNG) sector by inking a deal with U.S. supplier Sempra Energy (NYSE:SRE) (San Diego, California) for the potential supply of 1.4 million tonnes per annum of LNG from North America for 20 years. The INEOS deal will secure enough for its own needs and allow it to supply other businesses. "This agreement represents a major step forward in the INEOS Energy journey, at a time of significant transformation in the energy industry," commented Brian Gilvary, chairman of INEOS Energy. "Our entry into the global LNG market opens new opportunities to supply affordable, clean and reliable energy to the market. Long term supply from INEOS Energy will help alleviate the structural energy issues in Europe."
Industrial Info reported recently on how Europe, thanks to Russia's invasion of Ukraine and its throttling of gas supplies, imported a record amount of LNG in April 2022, averaging 16.5 billion cubic feet per day (Bcf/d). According to a report on the U.S. Energy Information Administration (EIA) site, from January through May, LNG imports into Europe averaged 14.9 Bcf/d, which is 5.9 Bcf/d (66%) more than the annual average in 2021. For additional information, see June 15, 2022, article - Europe Imports Record Amounts of U.S. LNG.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
