Petrochemical industry in Europe starts to fall prey to cheap US gas

06-Dec-13

Europe's petrochemical industry will start to feel the heat of competition from counterparts in USA .S. as they emerge with cheap feedstock from the shale gas boom, akin to what happened with the refining industry, as per Ruters. Refinery closures have cut an estimated 10% of European capacity since 2008, according to consultant Damian Kennaby. Those still in operation are struggling with losses or razor-thin margins as U.S. refiners flood Europe with cheap fuel made from low-cost shale oil and gas. "The cost of ethylene in Europe is $1,200 per tonne, while in the United States it's $500 per tonne," Tom Crotty, director at Ineos.