PODCAST: Petrochemicals now driven by geopolitics more than economics

BARCELONA (ICIS)–China’s new plan to accelerate a huge investment in Iran’s energy and petrochemicals shows how geopolitics is now driving petrochemical investments rather than economics.

• China to accelerate investment of up to $230bn in energy and chemicals investments in Iran
• Deteriorating US-China relations driving a new Cold War
• Iran has huge resources and potential for chemicals
• Iran could become major exporter of chemicals to China and Asia at expense of US
• Iran is already ramping up exports of methanol to China
• Geopolitics is now driving petrochemicals
• Conflicting signals on downstream chemicals demand for July and August
• China – worst floods in decades jeopardise economic recovery
• Chemical industry needs to react to structural changes in automotive, aviation, energy industries
• Focus on sustainability and affordability
• Sell solutions, not just products