US Eastman pushes coal-gas project - CEO

Ferguson told analysts during the company’s third-quarter results call that despite the current economic environment, Eastman continued to pursue the coal-gasification project in Beaumont.

Synthesis Energy Systems announced on Thursday it was abandoning its coal-gasification project in West Virginia due to the economic and credit crisis.

While Eastman somewhat slowed activities on the project and focussed on improving its design, capital costs were now moving in its favour, he said.

“I would like to think we were smart, of maybe we were just lucky,” said Ferguson.

“It may be counter-intuitive to say this, but we think that the overall attractiveness of this project is actually set to improve as world events play out,” he said.

Some of the analysts on the call were skeptical about the risk of the Beaumont project in the current environment and suggested that acquisitions may be less risky and a better use of Eastman's money.

They suggested to Ferguson that Eastman could buy the acrylic acid and ester business Dow Chemical plans to sell off as part of its merger with Rohm and Haas, and one even suggested Eastman should make a hostile bid for Celanese.

Eastman expected to update investors on the Beaumont project in February next year, he said.