UpdateNPRA ’08: Natgas at risk from climate laws

31 March 2008 18:42  [Source: ICIS news]

(adds video interview with Drevna)

SAN ANTONIO, Texas (ICIS news)--Availability of natural gas feedstock is at risk from proposed climate change legislation, National Petrochemical & Refiners Association (NPRA) president Charlie Drevna said on Monday.

US petrochemical producers fear the legislation would hamstring the industry, Drevna said on the sidelines of the 33rd NPRA annual petrochemicals conference.

The so-called “cap and trade” legislation would limit emissions by US industry and utilities and force electric power companies to switch from coal to natural gas in order to comply with the rules.

Such wide-scale fuel switching could send prices soaring for natural gas, a principal feedstock for US petrochemical manufacturers.

“It would have a major impact on the availability of feedstock supply,” Drevna said.

The NPRA’s petrochemical committee and 70 senior chemical industry executives are meeting on Monday with a top official of the Environmental Protection Agency (EPA) to discuss that and other issues.

They will also work on a framework to advance a new US-led environmental initiative, the chemical assessment and management programme (Champ).

A risk-based and tiered approach to environmental, health and safety concerns about chemicals in commercial use, Champ is supported by the US chemicals industry as a more workable alternative to the EU’s programme for registration, evaluation and authorisation of chemicals (Reach).

“It is an initial meeting on how best to establish the framework for the discussions,” Drevna said.

By: John Waggoner
+1 713 525 2653

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