London – The anticipated wave of new petrochemicals investments on the back of the US shale gas has, so far, failed to materialise, according to Dmitry Konov chief executive officer of Sibur.
While the shale gas boom had made the US an attractive location for investment it had also raised problems for companies building, or planning to build, new petrochemicals plants there, Konov explained at a press conference in London.
“If you talk to US companies and more importantly engineering companies you will see that the US is facing this huge increase in costs firstly in relation to labour, secondly with an escalation in [construction] materials prices," he said.
Konov, therefore, doubts that all the cracker projects that were initially announced will in fact go ahead. Some projects are moving ahead, but only slowly, he said, while others have stalled at the point of making the final investment decision.