Dow Chemical publicly disavowed?a $6.5 billion project for a natural gas export terminal that it partly owns, Alic writes.?Dow is opposed to this project because its senior management believes high volumes of LNG exports will lead to higher prices at home.
The liquefied natural gas tanker Inigo Tapias makes its way through Boston Harbor past downtown Boston. Dow Chemical opposes the natural gas export project because its senior management believes high volumes of LNG exports will lead to higher prices at home, Alic writes, which would bode ill for the future construction of chemical plants and Dow?s overall bottom line.
Michael Dwyer/AP/File
EnlargeDow Chemical CO. (NYSE:DOW) is opposed to the idea of unlimited US natural gas exports, and this opposition has led it most recently to completely disown a $6.5 billion project for a Texas export terminal that it partly owns.
Skip to next paragraph OilPrice.comoffers extensive coverage of all energy sectors from crude oil and natural gas to solar energy and environmental issues. To see more opinion pieces and news analysis that cover energy technology, finance and trading, geopolitics, and sector news, please visit?Oilprice.com.
Recent posts
' +
google_ads[0].line2 + '
' +
google_ads[0].line3 + '
Subscribe Today to the Monitor
Earlier this week, Dow management publicly disavowed Texas-based Freeport LNG, which it partly owns with a limited partner status.
Dow vice president of energy and climate change George Biltz told?Bloomberg: ?Dow is not going to be part of the new investment. We have taken no role and haven?t worked with them at all? on the export proposal.?
The Freeport LNG export terminal is hoping for federal permission to cool 1.4 billion cubic feet of gas into liquid natural gas (LNG) daily. This LNG would be transported to overseas markets.?(Related Article:?Betting on Mediterranean Shale: 3 Plays, 1 Winner)?
Dow is opposed to this project because its senior management believes high volumes of LNG exports will lead to higher prices at home, which in turn would bode ill for the future construction of chemical plants and Dow?s overall bottom line.
Dow?s limited partnership status in the company has brought the conflict of interest to the forefront, not least because it owns a gas-important facility right next to it. Essentially, Freeport wants to expand this gas-import terminal into an expert facility, complete with the necessary refrigeration units and storage tanks. It needs $6.5 billion to do it?and Dow has made it clear that it will not invest a penny in the venture.
Dow rose 1 percent to $34.43 at the close in?New York. The stock has increased 6.5 percent this year. Dow is worried that unlimited exports and sees its future in using the shale gas revolution to boost domestic projects?not exports.
In this battle, Dow also finds itself at odds with Exxon Mobil Corp., one of the most vocal proponents of unlimited US gas exports, the profits from which it insists will outpace any potential prices increases at home.
Original source:?http://oilprice.com/Energy/Natural-Gas/Dow-Opposes-US-Natural-Gas-Export-Plans.html
The Christian Science Monitor has assembled a diverse group of the best energy bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link in the blog description box above.
south by southwest i want to know what love is courtney mercury retrograde bath salts heart shaped box lucid
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.