Sector News

US shale-related chem industry investments hit $200bn – ACC

September 12, 2018
Chemical Value Chain

US chemical and plastics industry investment related to shale-based domestic supplies of natural gas and natural gas liquids (NGLs) has surpassed $200bn, the American Chemistry Council (ACC) said on Tuesday.

A total of 333 chemical projects worth an accumulative $202.4bn have been announced since 2010, the ACC said.

Of those, 53% complete or underway, the ACC said, while 41% of projects are still in the planning phase.

“This is an exciting milestone for American chemistry and further evidence that shale gas is a powerful engine of manufacturing growth,” ACC CEO Cal Dooley said. “The US remains the most attractive place in the world to invest in chemical manufacturing.”

ACC analysis showed that $202.4bn in capital spending could lead to $292.0bn/year in new chemical and plastics industry output.

The output would also translate to 786,000 jobs by 2025 including:

– 79,000 chemical industry jobs
– 352,000 jobs in supplier industries
– 355,000 jobs in communities where workers spend their wages

The ACC noted that the US chemical industry’s competitiveness hinges on its robust supply of NGLs. US crackers rely predominantly on gas-based ethane and other NGLs, while much of the world relies on oil-based naphtha.

Caution should be taken with the data, the ACC said, as US manufacturers often rely on foreign inputs.

“Protectionist trade policies such as tariffs and quotas unnecessarily raise the costs of those inputs, deter innovation and economic growth, and could ultimately weaken our country’s competitive advantage,” the ACC said.

By David Haydon

Source: ICIS News

comments closed

Related News

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.