BOC and Qenos have announced that they have shipped the first refrigerant grade ethylene to major LNG plants in Queensland and the Northern Territory, Australia.
The 10-year multi-million dollar sourcing agreement aims to reduce reliance on ethylene imports. Ethylene is an essential refrigerant for large scale LNG plants.
Ethylene, traditionally manufactured by Qenos to produce polyethylene for the plastics industry, is now available for large scale LNG export plants and will be delivered across Australia by BOC.
Colin Isaac, BOC South Pacific Managing Director, said that the partnership will help provide greater supply security to the Australian LNG export industry. It will also significantly cut delivery time for ethylene, which was previously shipped from Northeast Asia.
Mr Isaac said: “BOC is proud to be supporting Australia’s local manufacturing and export industries by delivering Australia’s only locally-produced ethylene, a refrigerant required for the ongoing operation of these major LNG export plants […] We are investing heavily in both local plant and local partnerships to enhance our supply capability. This minimises reliance on imports while increasing reliability of supply to Australia’s growth industries in oil and gas where significant quantities of industrial and specialty gases are required.”
Jonathan Clancy, Qenos Chief Executive Officer and Executive Chairman, added: “This collaboration brings together two significant industry capabilities that recognise BOC’s expertise in marketing and distribution of industrial gases, and the technical and manufacturing excellence Qenos provides in the production of ethylene.”
BOC funded the investments in the supply chain including the Qenos upgrade to the bulk ethylene filling bay at its Altona site to allow BOC tankers to fill and transport to its Dandenong site. BOC also increased capability at its Dandenong site to enable filling of ethylene into special shipping containers for delivery to customer sites.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/19112015/boc-and-qenos-sign-ethylene-souring-agreement-1650/