19 April 2007 17:52 [Source: ICIS news]
TORONTO (ICIS news)--Dow Chemical’s planned joint venture in Libya is a modest near-term positive but its longer-term potential lies in possible petrochemicals expansions in the North African country, analysts said on Thursday.
“Should the venture build a world-scale 900,000 tonne/year ethane cracker using low-cost Middle East ethane, assuming a 50% joint venture, we believe that the value to the Dow shareholder is in a range of $1.50-2.00 per share,” JPMorgan said in a research note to clients.
The analysts said that the Libyan operations were currently relatively small, with a 330,000 tonne/year ethylene naphtha cracker and capacities of 170,000 tonnes/year of propylene and 160,000 tonnes/year of polyethylene.
Deutsche Bank said in a note to clients that Dow may have obtained good terms from ?xml:namespace>
Since Dow was the first
Both Deutsche and JPMorgan said the
Dow appeared to be the partner of choice of Middle East countries keen on expanding downstream chemical industries.
Dow's shares were priced at $45.11/share, down 0.42% in Thursday morning trading in New York.
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