Shale Gas Dow Announced Competitive Advantage Through Shale Gas

Editor: Wolfgang Ernhofer

The Dow Chemical Company announced that the Company’s comprehensive plan to further connect its U.S. operations with cost-advantaged feedstocks from increasing supplies of U.S. shale gas is moving forward, and remains on-track to deliver long-term competitive advantage for many of Dow’s downstream businesses.

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Shale gas might make the US a global natural gas superpower analysts belive.
Shale gas might make the US a global natural gas superpower analysts belive.
(Picture: Conoco Phillips)

Midland/USA – Plans to increase ethylene supply and ethane cracking capabilities at existing U.S. Gulf Coast facilities strengthen the competitiveness of Dow’s Performance Plastics, Performance Products and Advanced Materials businesses and enable profitable growth in the Americas.

Key Milestones of the Company’s U.S. Gulf Coast Investment Plan Include:

  • Re-starting an ethylene cracker at the Company’s St. Charles Operations site near Hahnville, La. by the end of 2012. This project is progressing on time;
  • Improving ethane feedstock flexibility for an ethylene cracker at the Company’s Louisiana Operations site in Plaquemine, La. in 2015;
  • Constructing a new, world-scale ethylene production plant in the U.S. Gulf Coast, for start-up in 2017, which facilitates long-term growth in Dow’s Performance Plastics segment;
  • Constructing a new, world-scale on-purpose propylene production facility at Dow Texas Operations, for start-up in 2015.

70 Percent of Ethylene Assets in Regions with Cost Advantaged Feedstocks

“Our U.S. Gulf Coast investments represent a game-changing move to strengthen the competitiveness of our high-margin, high-growth derivatives businesses as we continue to capture growth in the Americas,” said Brian Ames, Dow business president of Olefins, Aromatics and Alternatives.

“Today, 70 percent of the Company's global ethylene assets are in regions with cost advantaged feedstocks – and we've seen the benefits this advantage provides even while the global industry is at mid-cycle operating rates. In addition, the investment for on-purpose propylene production will improve the downstream propylene envelope integration and provide a platform for margin improvements.”