12 Nov 2012

SABIC becomes world's first chemical company to commission LNG-run gas carriers

SITTARD, The Netherlands, November 12, 2012 - Saudi Basic Industries Corporation (SABIC) has commissioned the construction of two sea going gas tankers powered by liquefied natural gas (LNG) to transport its olefins products, in anticipation of a European Union directive to drastically reduce sulphur emissions from vessels operating in the North Sea by 2015. Switching to alternative fuels for ships, such as LNG, which is far more environment-friendly than traditional fuel oils is one of the solutions identified to meet the European Union directive.

SABIC’s two gas carriers will be used to transport olefins from a major plant on Teesside, England, to ports in North-West Europe and Scandinavia. SABIC is the first chemical company in the world to order gas carriers running on LNG.

“SABIC feels a strong sense of responsibility towards sustainability and the environment,” says Michel Wintraecken, SABIC Manager Sourcing & Contracting, Supply Chain Chemicals Europe. “This is why we have contracted Dutch company Anthony Veder for the use of two new LNG-powered gas carriers. We signed the basic agreement for the ships in April, construction has already started, and we will take delivery of them in 2014.”

Ships powered by LNG produce no sulphur emissions at all. In addition, carbon dioxide emissions are up to 20% less than with fuel oil and NOx emissions are almost 90% less. “We believe this initiative is the right thing for SABIC to do both from an environmental point of view as well as an economic point of view. The environmental benefits are profound and we also see it as a clear advantage that LNG is a bunker fuel which pricing is disconnected from crude oil,” comments Wintraecken.

Anthony Veder owns and operates a modern, high quality fleet of gas tankers for the transportation of petrochemical, liquefied petroleum and natural gasses, ammonia, and carbon dioxide. “In recent years, we have built up a good deal of experience with LNG-powered ships,” says Jan Valkier, CEO of Anthony Veder. “Our fleet is being continuously modernized, renewed and adjusted to comply with regulations, customer requirements and the high standards upheld by the gas industry. We are very pleased to be working together with a company like SABIC in a proactive stance towards the sustainability of commercial shipping.”

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Notes for editors

• SABIC is a registered trademark of SABIC Holding Europe B.V.

• High-resolution photos are available upon request

About SABIC

Saudi Basic Industries Corporation (SABIC) ranks among the world’s top petrochemical companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

SABIC recorded a net profit of SR 29.24 billion (US$ 7.80 billion) in 2011. Sales revenues for 2011 totaled SR 189.90 billion (US$ 50.64 billion). Total assets stood at SR 332.78 billion (US$ 88.74 billion) at the end of 2011.

SABIC’s businesses are grouped into Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics. SABIC has significant research resources with 16 dedicated Technology & Innovation facilities in Saudi Arabia, the USA, the Netherlands, Spain, Japan, India and South Korea. The company operates in more than 40 countries across the world with around 40,000 employees worldwide.

SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific.

Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.

About Anthony Veder Group

Anthony Veder Group was established in 1937 as a ship-owner and port agent. Ever since acquiring its first gas tanker in 1969, the company has been involved in gas shipping. As an integrated shipping company, it aims to develop long-term customer relationships by offering a safe, reliable and flexible service through a wide range of high quality gas carriers. The group is involved in all segments of the gas market, from CO2 to ethylene and from LPG to LNG. Furthermore, it provides comprehensive and efficient technical and commercial ship management services to third parties. www.anthonyveder.com.