High gas costs push shift in ethylene trade

03/13/2006
High gas commodity prices in North America have accelerated a shift in investment strategy by the region’s ethylene producers.Investment in new or expansion capacity in North America has moved to the Middle East, said Mark Eramo, vice-president for Chemical Market Associates Inc., Houston. He was speaking Mar. 6 to an industry executive forum at the 85th Gas Processors Association Convention in Dallas that addressed high energy prices and their effect on the gas processing industry.The Middle East has become the low-cost supplier of ethylene and propylene to Asia. That region’s market has, in turn, increasingly become North America, especially the US.This “global assembl...
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