BASF's plans 200mn Euro investment to up ethylene capacity by 2007
30 Aug '05
3 min read
European chemical major BASF AG is going to expand the capacity of its naphtha steam cracker at its site in Antwerp, Belgium. The expansion project will be conducted during the next regular turnaround of the plant scheduled for the fall of 2007 to avoid any additional shutdown.
The investment of about €200 million will raise ethylene capacity from 800,000 metric tons per year to 1.08 million metric tons per year – making the plant the largest single-train steam cracker in Europe.
“The expansion of our cracker in Antwerp – the starting point for our essential value chains – is an investment with a special strategic importance for BASF,” said Dr. Stefan Marcinowski, Board Member at BASF Aktiengesellschaft, responsible for the Chemicals segment.
“We carefully evaluated our internal demand developments and the external market situation for cracker products and came to the conclusion that 2007 is the right time for the expansion,” said Dr. Werner Prätorius, President of BASF's Petrochemical division.
“As to our underlying investment strategy, the additional olefins and aromatics volumes from the expansion will be absorbed by existing and future internal demand. As in the past, part of the ethylene output of the cracker will be marketed either directly or preferably via heterogeneous swap arrangements for other chemicals. As no major new cracker projects are foreseen in Europe until at least 2009 and in view of projected average demand growth of 1 to 1.5 percent per year, the additional ethylene volumes will fit into the market,” Prätorius added.
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