US chemical sector flourishes, European counterparts struggle

Investments in the US shale gas-related chemical projects are expected to reach $208 billion in 2024, spurring a robust growth outlook. Over the next decade (2025–2035), the US chemical sector's annual investment growth is expected at 3.8 per cent, significantly outpacing the global rate of 2.5 per cent. Furthermore, the cheap and abundant natural gas from domestic shale production has kept production costs low, driving competitive advantages.

European chemical production is forecast to grow at only 1.5 per cent annually over the next decade. Energy costs have surged due to dependency on liquefied natural gas (LNG) imports, leading to weaker competitiveness. Companies in Europe are shutting down facilities to cope with oversupply and low margins. ExxonMobil and SABIC recently announced the closure of crackers in France and the Netherlands, reducing 955,000 tons per year of capacity.

ALCHEMPro News Desk (AJ)