Austria-based polyolefins and base chemicals provider Borealis has signed a long term agreement to source ethane from Norwegian Statoil for its flexible steam cracker in Stenungsund, Sweden.

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The contract will allow Borealis to source good amount of feedstock for its petrochemical complex in Stenungsund.

For the supply of ethane from Statoil’s gas plant at Kårstø, Norway, Borealis and Statoil have renewed the contract, which will secure a significant volume of ethane to Borealis’ cracker in Stenungsund in the coming years.

The new contract, which will last for a period of seven years, is expected to start in October 2015.

Borealis’ cracker in Stenungsund can also crack naphtha, propane and butane, apart from ethane.

Borealis chief executive Mark Garrett said the renewal of the ethane supply contract with Statoil shows the value of firm’s long term partnership.

"This new contract will secure that our Stenungsund petrochemical complex will stay ahead of the curve in an increasingly competitive environment for the European industry," Garrett added.

Statoil crude liquids and products business unit senior vice president Tor Martin Anfinnsen said the contact extend a productive relationship that has existed from the 90’s when the company had an ownership stake in Borealis.

Image: Mark Garrett, Borealis CEO, Eldar Sætre, executive vice president Statoil; Markku Korvenranta, executive vice president Base Chemicals, Borealis. Photo: Courtesy of Borealis.