The Plastics Blog
By Don Loepp | About The Plastics Blog

Al-Mady: US is awash in natural gas, and Sabic needs to participate

By Don Loepp | February 11, 2013 02:22 pm ET

For anyone who wonders why shale gas is such a big story for the global plastics industry, consider this math. In 2008, US natural gas cost about $13 per million Btu, today it's about $3.75.

What a difference five years makes.

Mohammed Al-Mady, vice chairman and CEO of Saudi Basic Industries Corp., is among the global petrochemical company executives who's dealing with the changing market.

Back in 2007, when his company bought GE Plastics, analysts might have bet that Sabic's low-cost feedstock supply in the Middle East would eventually mean international expansion at the expense of investment in North America.

Today the shoe is on the other foot.

In an extensive interview today on ArabianBusiness.com ("SABIC interview: Mohammed Al-Mady"), the CEO shares his thoughts on the market.

The part that jumped out at me: Al-Mady said it was "important that we participate" in the growth of the U.S. petrochemical industry, adding that Sabic is already in talks with companies in the United States, with the aim of either forming a joint venture or towards making an investment on its own.

That doesn't mean Sabic is going to become a major commodity resin supplier in North America. But it's interesting to see how the company is putting an emphasis on the U.S. market for future investment.


Recent Blog Posts

Plastic gets official for March Madness   March 19, 2015 10:47 am ET
SAE may change, but auto technology marches on   March 13, 2015 12:24 pm ET
Plastics companies named manufacturing leaders   March 4, 2015 5:58 pm ET
Let's take a look at the fastest growing thermoformers   February 16, 2015 11:19 am ET
Plastics, thermoforming and the 2015 Super Bowl   February 2, 2015 10:59 am ET

Comments

Al-Mady: US is awash in natural gas, and Sabic needs to participate

By Don Loepp

Published: February 11, 2013 2:22 pm ET
Updated: February 11, 2013 2:40 pm ET

Post Your Comments


Back to story

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events