Fuel Fix: European chemical industry importing U.S. shale gas
As the U.S. chemical sector grows and expands, fueled by a surge in domestic gas production, the European chemical industry is stagnating, plagued by high production costs and a lack of investment in new plants and research and development.
To stay competitive, Europe must do business differently, including importing ethane from the United States, Michael Smith, vice president of energy analyst firm IHS Chemical told industry officials at the European Petrochemical Association annual meeting in Vienna this week.
Smith’s comments were the latest in a chorus about the future of Europe’s chemical industry, which has been facing greater pressure to pivot its business model after a deluge of cheap natural gas touched off a building spree in the U.S. petrochemical industry, creating new competition for lucrative markets in Asia and the Middle East.