26 May 2010 20:03 [Source: ICIS news]
TORONTO (ICIS news)--The possible privatisation of Iran’s National Petrochemical Co (NPC) would very likely result in higher natural gas prices charged to that country’s petrochemicals industry, a research firm said on Wednesday.
An industry source told ICIS news earlier this month that ?xml:namespace>
New York-based equity research firm Alembic Global Advisors said in a research note that
With the vast majority of the country’s petrochemicals industry belonging to NPC,
“A move towards privatisation would surely result in higher natural gas prices being charged to the petrochemical industry in
Currently, Iranian petrochemical facilities received their gas allocation at $1.25/m Btu, translating into ethylene production costs of around $250/tonne, according to Alembic.
This compared with ethane-based ethylene production costs of $615/tonne in the
An increase in Iranian gas/ethane prices would, if implemented, be a positive for US ethane-based ethylene producers such as Dow Chemical and LyondellBasell, as well as Middle Eastern producers, in particular SABIC, Alembic said.
In the US, the petrochemical industry’s first-quarter results benefited from lower gas prices.
“We find it interesting that at a moment in time when, stemming from falling natural gas prices, the
Alembic added that NPC’s privatisation could take place as early as the end of this year or the beginning of next year.
($1 = €0.81)
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