14 June 2012 21:49 [Source: ICIS news]
HOUSTON (ICIS)--US LyondellBasell has a cost advantage of about 30 cents/lb ($661/tonne, €522/tonne) because it uses natural gas-based feedstocks instead of crude oil-based ones, the company said on Thursday.
"The production costs out of US crackers are moving down," said Doug Pike, the vice president of investor relations for LyondellBasell. "This puts the US competitive with Mideast crackers at this point."
Pike made his remarks during the Deutsche Bank Industrial and Basic Materials Conference.
"About two-thirds of the world is producing from crude-based raw materials," he said. "The cost of production on that basis has been about 50-60 cents/lb. Meanwhile, in the Middle East and in the US, you are producing from natural gas … at an advantage of 30 cents/lb."
He said this advantage has been a core driver of the company's profitability.
($1 = €0.79)
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