29 October 2013 21:06 [Source: ICIS news]
HOUSTON (ICIS)--Ethane exports from the US to Europe similar to the INEOS Grangemouth deal will not become commonplace in the coming years, the CEO of LyondellBasell said on Tuesday.
“You’re going to see a limited amount of ethane exported like that,” said Jim Gallogly, who made his comments during a Q3 earnings conference call.
The CEO pointed to the government aid being supplied to INEOS in the deal that kept the UK plant from being shutdown permanently as something that will not occur often.
Despite its large presence in the US, LyondellBasell also operates plants in France, the Netherlands, Germany, Italy and Spain, so it is not immune to the feedstock disadvantages plaguing European chemical producers.
The company has cut costs by restructuring, cutting staff and reducing capacity in an effort to maintain margins, an effort Gallogly said that his company has done better than most.
“There's a fair amount of margin pressure on certain sites in Europe, and that's why we continue to work the cost so hard,” he said. “Now I think if you look at our European Olefins and Polyolefins performance compared to our peer group, we're leading the pack. So we worked the costs. We try to run differentially and try to make a bit of money opportunistically.”
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections