Dow mulls shipping US propane to European crackers

26 April 2012 20:30 Source:ICIS News

HOUSTON (ICIS)--Dow Chemical is evaluating shipping low-cost propane from the US to its flexi-crackers in Europe, particularly its plant in Terneuzen in the Netherlands, the company's chief executive said on Thursday.

The advent of shale gas in the US has lowered costs for propane and inventories are at high levels.

Dow has flexi-crackers in Europe that can use propane as a feedstock, giving them a cost advantage against other crackers that rely on oil-based naphtha.

"Can we take LPG from low-cost jurisdictions into those crackers? The answer is yes," said Andrew Liveris, Dow CEO. He made his comments during an earnings conference call.

"We are evaluating that sort of thing," he said.

The key issue, though, is the availability of export terminals, especially for propane, Liveris said. "But we are looking into it, for Terneuzen in particular."

By Al Greenwood