21 May 2008 20:29 [Source: ICIS news]
TORONTO (ICIS news)--Canada's NOVA Chemicals expects continued strong profit margins in coming months as the ethane feedstock advantage it enjoys at its plants in Joffre, Alberta – compared with US Gulf Coast producers – will widen further, CEO Jeff Lipton said on Wednesday.
US petrochemicals producers were increasing their demand for ethane as high oil prices drove up the cost of naphtha-based feedstock, Lipton told analysts at an investor conference in ?xml:namespace>
“[US] ethylene producers are using as much ethane – the lowest-cost feed – as possible, and as little naphtha as they can possibly use,” he said.
However, this shift towards ethane would inevitably drive up ethane costs for NOVA’s
Ethane supplies were behind consumption, inventories were falling, and the market would get even tighter in June as there were only every few ethylene plant outage expected, resulting in increased ethane pricing going forward, he said.
Meanwhile NOVA continued to enjoy access to low-cost ethane in
With oil prices at high levels, NOVA’s production in
“We expect to continue to outperform almost all of our olefins and polyolefins peers around the world by a significant margin,” said Lipton.
The outlook for ethane and related feedstock in
Longer-term, planned natural gas pipeline projects from
The natural gas and ethane content from the
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