Nearly half of petrochemical company expansion in US comes from foreign investors

Fuel Fix:

Foreign investors are helping fuel the U.S. petrochemical renaissance, as overseas companies scramble to take advantage of the surge of cheap domestic natural gas, according to a new industry analysis.

Twelve of the 25 companies proposing to build or expand ethane crackers in the United States are international firms, underscoring the competitive advantage the U.S. continues to reap from the shale boom, according to Petrochemical Update, which analyzes construction trends for the petrochemical industry.

Foreign interest in the U.S. petrochemical industry spiked after advances in horizontal drilling and hydraulic fracturing unleashed a wave of natural gas. Prices collapsed, quickly transforming the U.S. from one of the world’s highest-cost chemical and plastics producers to the world’s second cheapest producer behind the Middle East, Petrochemical Update said.

Three of the six ethane crackers already under construction are under development by foreign companies, including Taiwan-based Formosa Plastic’s new cracker in Point Comfort, South African Sasol’s $8.1 billion project in Louisiana and a joint venture between OxyChem and Mexico-based Mexichem for a $1.5 billion cracker in Ingleside, the group’s report found.
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Many of the new plants will be making products for export which will also boost the US trade balance.  The projects range from $250 million up to $8 billion.  That represents a lot of construction jobs as well as long term jobs.  Big Green's alternative energy mavens have nothing comparable to the petrochemical business.