Industry: Midstream & NGLs

Chemical industry summary  As witnessed by record inventory, the global oversupply of crude oil continues to weigh on expectations for a price recovery in the near term. This is both a supply and a demand-driven problem with consensus expectations indicating that 2016 is highly unlikely to show significant improvement in energy pricing. Companies in the […]

Chemical industry summary Publicly traded US commodity chemical producers reported surprisingly good financial results for the recently completed third quarter. Margins in Q3 for the US polyolefin chain decreased sequentially with polymer prices falling more than feedstock costs. However, for Europe, the story was reversed with declining oil and naphtha prices falling faster than olefins […]

Chemical industry summary The deflation of global chemical prices continues following declining feedstock and oil/gas prices. Key olefins in the US are now hitting levels not seen since 2009 in some cases, not seen since 2003. Ethylene margins are starting to ease for US shale gas-based chemical producers as lower international prices have resulted from […]

Chemical industry summary Reflecting a lower cost basis, global commodity chemical prices continue to wilt as the global chemical industry adjusts to lower crude oil prices. Spot ethylene in Asia has recently traded near US$800 per MT, down from US$1,400 in July. Margins have eased for producers in all regions. The Asian ethylene/naphtha spread has […]

Chemical industry summary US and global commodity chemical companies generally reported favorable financial results in the Q2 earnings season, with several companies reporting record results. Commodity chemical prices proved to be relatively stable despite ongoing feedstock price erosion. Demand for polyolefins in all regions was relatively firm and producers’ inventories at the end of Q2 […]

Chemical industry summary  Heading into Q2 earnings season, chemical margins generally look positive for most chemical sectors with olefins/polyolefins leading and the chlor-alkali chain less profitable.  Macroeconomics and geopolitics The International Monetary Fund (IMF) reports Q1 global GDP growth at 2.2%, 0.8% below the April forecast. The year 2015 now looks to be at 3.3% […]

Increased U.S. shale gas production has spurred numerous LNG export projects. While off-take agreements are crucial, robust gas sourcing strategies for these liquefaction plants are equally vital, especially as operations commence.

Despite its reduced environmental impact relative to other disposal methods, flaring represents a dissipation of economically viable energy resources.

CNG offers the advantages of lower cost and a more established fueling infrastructure in the US. Conversely, LNG provides higher energy density and greater portability due to its independence from pipelines, allowing access to remote areas.

Driven by new LNG exports, the global carrier fleet, 400+ in 2014, will exceed 500 within five years, prompting shipbuilder expansion.

Floating LNG technology offers potentially faster and more economical deployment compared to onshore facilities, which, if cost efficiencies are realized, could enhance LNG market competitiveness and affordability.

AMERICAS  Borealis to consolidate plastics compounding operations in Brazil  Borealis is planning to restructure its operations in Brazil, by transferring production from its plant at Triunfo to the recently upgraded facility at Itatibain in early 2015. Borealis invested about USD 57.3 million to expand the Itatiba facility with the construction of an additional production building, […]