Braskem considers shale gas feedstock in US

25 May 2012 22:06  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazilian petrochemical giant Braskem is evaluating the possibility of switching its US polypropylene (PP) plants to utilise feedstock derived from shale gas reserves, the company said on Friday.

“Various options, including investment held 100% by the company or through a partnership with another company, are being evaluated,” said the company.

“Any decision on an investment will not be immediate but may be taken later this year,” the company added.

The producer wants to take advantage of the cheap price of natural gas in the US market, according to the company.

Braskem currently uses naphtha in its US plants, but rising costs of crude oil derivatives has hurt company profits, the company said.

The price of naphtha increased by 16% over values in the fourth quarter of 2011, the company said.

“Braskem is always seeking opportunities to access more competitive raw materials,” said the company.

Braskem is the largest producer of PP in the US market, according to the company’s website.

By: Simon West

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly