The era of massive feedstock cost advantage for the chemical industry may be coming to an end. According to a report out today from bank HSBC, a review is expected to gradually push natural gas prices up from $0.75/mmbtu up to $2/mmbtu by 2015.
Middle East set to increase ethane feedstock prices
By Will Beacham on 24 January, 2011 in Uncategorised
With US natural gas prices falling to around $4mmbtu thanks to shale gas, the cost advantage looks like it will be fast disappearing. This is especially true when you factor in the extra logistics costs from the Middle East plus depreciation of those shiny new ethane cracker assets.
The discount for liquid feeds is also predicted to decrease from the current 28% down to 25% by 2014.
About Will Beacham
FREE TRIAL TO ICIS NEWS
LATEST CHEMICAL INDUSTRY NEWS
Artenius BASF BorsodChem Brenntag chemical chemicals china Ciech cracker Czech Republic distribution Dow ethane ethylene europe fertilizers forecast gas hungary ICIS INEOS IPIC IPO La Seda de Barcelona MOL Nafta Polska NEPIC oil Oltchim petrochemicals PKN Orlen poland privatisation privatization projects pvc reach russia shale gas sibur Spolchemie turkey ukraine unipetrol Wilton