Washington (Platts)--9Oct2012/101 pm EDT/1701 GMT
Increased production of natural gas and natural gas liquids from US shale plays could make the US a global low-cost provider of energy and chemical feedstocks, PwC US said in a report released Tuesday. Shale gas could enable "US manufacturers to lower their raw materials and energy costs as much as $11.6 billion annually by 2025," the report said. Based on industry reports, PwC estimated that the US chemicals industry has invested $15 billion in ethylene production, increasing capacity by 33%. Ethylene is made from NGLs. As these investments take hold, yielding more supply, the US could become a major, global, low-cost provider of energy and feedstocks to the chemicals industry, PwC said. Article continues below... Request a free trial of: Gas Daily Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major U.S. markets. Gas Daily keeps you informed about complex state and federal regulations that affect competition in the gas industry.
Increased production of natural gas and natural gas liquids from US shale plays could make the US a global low-cost provider of energy and chemical feedstocks, PwC US said in a report released Tuesday. Shale gas could enable "US manufacturers to lower their raw materials and energy costs as much as $11.6 billion annually by 2025," the report said. Based on industry reports, PwC estimated that the US chemicals industry has invested $15 billion in ethylene production, increasing capacity by 33%. Ethylene is made from NGLs. As these investments take hold, yielding more supply, the US could become a major, global, low-cost provider of energy and feedstocks to the chemicals industry, PwC said.
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Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major U.S. markets. Gas Daily keeps you informed about complex state and federal regulations that affect competition in the gas industry.
The report said specialty chemical entities "are starting to feel the effects of natural gas and NGL prices on their business models." Research and development initiatives leveraging ethylene-based chemistries that replace petroleum-based products may predominate, the report added. "Companies might also look for longer-term sourcing relationships and partnerships with raw material suppliers to help with developing new products," the report said.--Rodney White, rodney_white@platts.com --Edited by Jeff Barber, jeff_barber@platts.com
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