Dow targeting US policy to preserve profitability of new plants

25 April 2013 20:49  [Source: ICIS news]

HOUSTON (ICIS)--Dow Chemical is targeting US government policy as part of a multi-step strategy to preserve the profitability of the new plants it plans to build along the US Gulf Coast, the company's chief executive said on Thursday.

Dow plans to build a 1.5m tonne/year ethane cracker in Freeport, Texas, as well as up to two propane dehydrogenation (PDH) plants that will produce on-purpose propylene.

"Our competitive US Gulf Coast investments are predicted to deliver $2bn [€1.5bn] by 2017 and $2.5bn when fully operational, and we are taking multiple steps to protect this profitability, not the least of which are our activities on the policy front," said Andrew Liveris, Dow CEO.

He made his comments during Dow's 2013 Q1 earnings conference call.

Liveris did not elaborate on those policies.

However, Dow has been active in opposing unlimited exports of US liquefied natural gas (LNG), arguing that it could threaten the nation's energy and feedstock advantage.

Dow is a member of America's Energy Advantage (AEA), a group made up of other companies wary about unlimited LNG exports.

Earlier this year, Liveris told the Senate Energy and Natural Resources Committee that “unchecked LNG export licensing can cause demand shocks, and the resulting price volatility can have substantial adverse impacts on US manufacturing and competitiveness”.

Additional reporting by Joe Kamalick

($1 = €0.77)

By: Al Greenwood
+1 713 525 2645

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