Brussels, 13/10/2006 (Agence Europe) - On Thursday, the European Commission authorised a direct subsidy that the German Land of Bavaria is planning to grant EPS (Ethylene Pipeline Süd GmbH & Co. KG), a consortium of German petrochemical companies (BASF AG, Borealis Polymere GmbH, Clariant GmbH, OMV Deutschland GmbH, Ruhr Oel GmbH, Vinnolit Gmbh&Co KG and Wacker Chemie GmbH) for the construction of an ethylene pipeline. The planned aid amounts to 29.9% of the total eligible costs of the investment, up to a maximum aid level of €44.85 million. EU Competition Commissioner Neelie Kroes said in a press release: “The Bavarian pipeline will constitute an important link between existing networks in Western Europe and 'inland islands' in Central Europe. Now, that Germany has agreed to reduce the aid level from 50% to 30%, I am satisfied that the advantages of the aid will outweigh a possible distortion of competition.” The Commission initially feared the aid for a 357 km long ethylene pipeline between Ludwigshafen (Rheinland-Pfalz) and Münchsmünster (Bavaria) might primarily benefit the petrochemical industry in Bavaria, but observes that the pipeline will be operated in compliance with the principles of common carrier, open access, non-discrimination and minimum profit. (ab)