Episode 1124: Think Tank: Saudi chemical producers under pressure as ethane price soars
Saudi Arabian petrochemical producers face a steep increase in production costs as the state-controlled price of ethane rises towards free market levels. - Saudi Arabia has increased ethane price from $1.50/MMBtu to $2.50/MMBtu- Pressure on producers as ethylene production costs rise from $75/tonne to $130/tonne- Middle East cannot continue to rely on China as a key chemical export market- As energy transition accelerates, chemicals will lose access to fossil-based feedstocks- High cost of electric vehicles is deterring mainstream buyers