PODCAST: Saudi chemical producers under pressure as ethane price soars

Will Beacham

06-Feb-2024

BARCELONA (ICIS)–Saudi Arabian petrochemical producers face a steep increase in production costs as the state-controlled price of ethane rises towards free market levels.

  • Saudi Arabia has increased ethane price from $1.50/MMBtu to $2.50/MMBtu
  • Pressure on producers as ethylene production costs rise from $75/tonne to $130/tonne
  • Middle East cannot continue to rely on China as a key chemical export market
  • As energy transition accelerates, chemicals will lose access to fossil-based feedstocks
  • High cost of electric vehicles is deterring mainstream buyers

In this Think Tank podcast, Will Beacham interviews ICIS Insight Editor Nigel Davis and Paul Hodges, chairman of New Normal Consulting.

Click here to listen to the podcast

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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