U.S. Chemical Sector Plans Investment

U.S. chemical companies are expected to drive new breakbulk demand with investment decisions on a range of second wave construction, following double-digit growth for the first half of the year.

Some of the largest firms such as Dow, LyondellBasell and Chevron Phillips Chemicals have posted strong growth in 2017 and are now greenlighting multibillion-dollar spending.

“Second quarter earnings showed solid growth against a benign macroeconomic backdrop with expansion in manufacturing activity … Companies also appear more confident on the long-term outlook, committing to major capital plans in the U.S.,” Joseph Chang, global editor of ICIS Chemical Business told Petrochemical Update.

Dow Chemical has committed to invest US$4 billion over the next five years while LyondellBasell recently approved a US$2.4 billion propylene oxide/tertiary butyl alcohol (PO/TBA) project.

ExxonMobil Chemical and Saudi Arabian partner SABIC are also looking at investing in a new U.S. cracker facility in Corpus Christi, Texas.