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.
US chemical sector anticipates an investment boom, with projections reaching $208 billion in 2024, fuelled by low-cost shale gas.
This growth, estimated at 3.8 per cent annually through 2035, dwarfs the global average of 2.5 per cent.
Conversely, Europe’s chemical industry struggles with high energy costs and competitiveness, leading to a modest 1.5 per cent growth.
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.
Fibre2Fashion News Desk (AJ)
