BOC has entered into a 10-year multi-million dollar ethylene sourcing agreement with Qenos, Australia’s only manufacturer of polyethylene. BOC’s latest partnership continues its significant investment in Australia’s gas infrastructure and supply. Ethylene is an essential refrigerant for the new LNG mega projects under construction in Queensland and Western Australia.
Qenos will supply up to 1,800 tonnes of ethylene per annum with the first supply expected in the third quarter of 2015. The agreement includes terms for the installation of an ethylene tanker filling bay at Qenos’ Altona site and infrastructure at BOC’s Dandenong site. BOC tankers will be filled with refrigerant grade ethylene at Qenos for filling into ISO containers to service the growing LNG export industry.
BOC’s Managing Director, Colin Isaac explains that the agreement signals a continued execution of the company’s growth strategy based on developments in emerging markets and servicing major customers.
This investment will see Australian produced ethylene supplied to the LNG mega projects, thereby reducing reliance on imports, providing enhanced supply security and benefiting local industry.
BOC has already made significant investments in Australia including a $65 million upgrading of its Dandenong Air Separation Unit (ASU) and LNG facilities in 2010 to meet the country’s growing need for eco-friendly alternative fuels for heavy transport. BOC is also additionally developing a micro-LNG plant near the Queensland township of Chinchilla also dedicated to providing the trucking industry with a cleaner alternative fuel.
Jonathan Clancy, Qenos Chief Executive Officer said the company chose to work with BOC because of its proven track record for the safe, effective and cost-effective supply of cryogenic gases to a wide Australian customer base and building on Qenos’ existing relationships with BOC. Mr Clancy also commended BOC’s best practice in ethylene supply via ISO containers, with attention to safe filling, loss minimisation and emergency response procedures.
Ethylene is used as a refrigerant when processing natural gas. Treated natural gas is chilled, cooled and condensed in successively colder heat exchangers. The liquefied natural gas product is then pumped into insulated storage tanks where it remains until shipment.