The pipeline should be completed by 2007 at a total cost of E200m

A E200m pipeline to carry propylene between Antwerp and the heart of the German chemical industry in the Ruhr has been given the go-ahead by the EU. Work on the project will now start next year with a target completion date of 2007.

The future of the project has hinged on approval for E45m government subsidies, without which the scheme is not viable. This support has now been endorsed by the Commission. A total of eight companies including BASF, BP, DSM, Sabic, Shell and Celanese are members of the consortium behind the pipeline, which will link a number of steam crackers and smoothe supplies of propylene feedstock in the critical NW Europe area. Half of Europe’s propylene consumption – nearly 15m tonnes – lies within the scope of the new link.

Backers of the scheme say that it will improve the competitive position of the West European industry, boost flexibility and benefit the environment by limiting overground feedstock movements. Demand for propylene feedstock exceeds that for ethylene, driven in part by the growth enjoyed by polypropylene.