Overview

• Major petrochemical firms including Dow, ExxonMobil, TotalEnergies and Shell are shutting or reviewing European plants in response to soaring costs and global capacity shifts.
• The European Commission has unveiled expanded state aid for plant upgrades and local-preference procurement rules to bolster strategic chemical production.
• Europe’s ageing naphtha crackers produce ethylene at about $800 per metric ton, compared with under $400 in the U.S. and roughly $200 in the Middle East.
• INEOS has commenced construction on a €4 billion ethane cracker in Antwerp, the first such plant in Europe in nearly 30 years with annual capacity of 1.45 million metric tons.
• Middle Eastern consolidation is creating global-scale producers, highlighted by the planned $60 billion merger of Abu Dhabi National Oil Company and OMV to form Borouge.