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Ethylene terminal contracts: Questions & Answers

These Questions and Answers provide guidance on issues that may impact any subsequent agreement but are for information only. If you have any further questions please get in touch with us via the 'contact us' facility.

Is the contract available for periods of less than 12 months?
No, it is for a 12 month period only.

Is the contract available for more than 12 months?
Yes, for certain categories of customer, as defined by the European Commission, but only for multiples of 12 months.

Can the contract run for 12 months but not January to December?
No, the contracts are calendar year only.

Can I deliver liquid ethylene in any size vessel?
No, there are limits to the size that we can handle - normally 4,500 tonne parcels - and the vessel must meet Shell's safety standards.

Can I deliver any quality of ethylene?
No, the quality must meet the common pipeline specification, as set out in the contract.

Can I take re-delivery wherever I like?
No, Shell will re-deliver to a nominated point on the pipeline system in Antwerp and any further distribution costs are for the other party's account.

Will you take other products under this contract, like propylene and/or butadiene?
No, this is for ethylene only. 

Is this contract only related to imports into the Netherlands and delivery in Antwerp?
Yes, Moerdijk is the only ethylene terminal through which Shell can offer terminalling volumes.

When is the first contract available?
The first contracts are available from 1 January, 2003.

What is the price that I will pay?
The price is fixed at EUR30* per tonne in 2003 and indexed to inflation thereafter. If you do not take the minimum volume contracted, you will pay for that volume anyway.

How is the price paid?
Shell will formally purchase the cargo of liquid ethylene and invoice for an identical quantity delivered Antwerp plus the EUR30* per tonne fee.

How do I apply for an ethylene contract?
Please use the 'expression of interest' form that sends an e-mail directly to us. We will then negotiate the contract with you.

Are certain customers given preference of allocation?
Yes, companies that have no interest in other ethylene terminals in the Benelux have preference over companies that do.

Will you always contract for the annual volume that I want, if I am not a shareholder in another terminal in the Benelux?
The volumes requested will be added up at the beginning of October each year and, if the total volume requested for a given year exceeds 250,000 tonnes (less that already contracted under multi-year contracts), the volume in each contract request will be reduced pro rata, once preference has been given to non terminal owners. Volume will not be allocated on a "first come first served" basis.

* This amount is exclusive of VAT, customs duty or any other levy. VAT, customs duty or any other levy will be added to the price where applicable according to local legislation.



 
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