US LNG exports should help US chem producers – LyondellBasell CEO

13 March 2013 15:41  [Source: ICIS news]

NEW YORK (ICIS)--US liquefied natural gas (LNG) exports should actually help US chemical producers, despite concerns by some CEOs that this would hurt the industry, the chief executive of LyondellBasell said on Wednesday.

“Generally this helps us. We want [natural gas] producers to have better pricing because we’re not interested in the methane – but the liquids. We’re optimistic,” said Jim Gallogly, CEO of LyondellBasell at the company’s investor day.

LNG typically consists mostly of methane, or dry gas, to be used as fuel.

The natural gas liquids (NGLs) such as ethane, propane and butane, could be stripped out for use locally, or in the case of propane, exported as well by ship.

Ethane is more difficult to ship overseas, although Switzerland-based INEOS has a deal to ship ethane from the US east coast to its cracker in Norway by 2015.

“We as an industry support exports. We love free enterprise and exports,” said Gallogly.

“We suspect US LNG exports will be relatively modest,” he added.

By: Joseph Chang
+1 713 525 2653

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