U.K.-based petrochemical giant INEOS Group Ltd. plans to invest €2.7 billion to construct both an ethane cracker and a propane dehydrogenation unit in Northern Europe designed to benefit from U.S. shale gas economics.

The new cracker, the first one to be built in Europe in over two decades, is likely to be built on the coast of northwest Europe, according to a July 3 news release. The project would make the company more self-sufficient in terms of its olefin products, according to INEOS Olefins and Polymers North Chairman Gerd Franken. "All our assets will benefit from our ability to import competitive raw materials from the USA and the rest of the world," he added.

The project would also build on the company's previous investments in importing U.S. shale gas to Europe, INEOS Chairman and founder Jim Ratcliffe said.