HOUSTON (ICIS)--Europe is going to see more cracker shutdowns and plant idlings in the coming five years as producers adapt to market demand and Middle East production capacities, the CEO of Dow Chemical said on Wednesday.
“What we are going to see in the next five years in Europe, is, in my belief, more shutdowns and more idlings because you can’t keep [crackers] running at the [current] slim margins,” Andrew Liveris told analysts during Dow’s third-quarter results conference call.
However, Dow Chemical's European crackers in
“We are in the lowest-cost of the highest-cost position in
Liveris also said that it would generally make not much sense to ship ethane from the
However, Liveris said that this makes sense only if a company already has ethane cracking capacities in place in
“There has been ethane available around the world for a long time, but it hasn’t moved for a reason,” he said.
And even though Dow has liquid petroleum gas (LPG) cracking capability in the
“I think [INEOS] is more a one-off, rather than systemic,” he added.