Daily Chemical Reactions

The Chain (Opportunity) – Have the Stars Aligned For Midstream To Move Downstream? We Think So!
November 1, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Enterprise Products, Phillips 66, LyondellBasell, Aramco, Shell, ExxonMobil, Chevron, Celanese, DuPont, BP, Factorial Energy, Ecovyst, Sealed Air, Denbury, ICL, Avient, Valero, Ecolab, DSM, Clean Hydrogen Works, Tata, Lotte Fine Chemical, Linde, SLB, Rohm, Topsoe, SGP BioEnergy, Siemens Energy, Zeon, Ineos, Plastic Energy, IMCD, Indian Oil, Core Lithium, Gujarat Heavy Industries, Orbia, Olin

Daily Chemical Reaction

The Chain (Opportunity) – Have the Stars Aligned For Midstream To Move Downstream? We Think So!

Key Points:

  • An opportunistic setting has developed for energy players to deploy strong cashflows towards growth downstream in chemicals to improve long-term risk-adjusted returns.
  • USGC NGL gross frac spreads remain elevated, pushing fractionators to run hard and expand – a positive input market trend for the domestic petrochemical industry.
  • We discuss estimates of “lost production” of chemicals in Europe due to high energy costs in 2022 and why the recent re-start of some production may prove temporary.
  • We show a flow diagram from Sealed Air to frame the complexity with most circular product initiatives and discuss why the Linde/SLB collaboration makes sense for CCS.
  • Global container freight rates on avg. continue to trend toward 2019 levels, enhancing our confidence that product demand is a greater concern than availability in late 2022.

See PDF below for all charts, tables and diagrams

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