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)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections