Executive Briefings

Betting Big on Natural Gas, Dow to Invest $6Bn in Expanding Its U.S. Manufacturing Plants

Dow Chemical is investing $6bn to enlarge its manufacturing facilities in the United States by 40 percent, based on a wager that low natural gas prices here will persist into the middle of the next decade, a Dow executive said recently.

Betting Big on Natural Gas, Dow to Invest $6Bn in Expanding Its U.S. Manufacturing Plants

The investment reverses Dow's vocal exodus from manufacturing in the United States, said Doug May, Dow’s business president of olefins, aromatics, and alternatives, during the Kellogg Energy Conference at Northwestern University.

"We're putting $6bn here in the U.S. Gulf Coast, betting that the gas advantage maintains for us to get a suitable return on that investment, which is into the next decade," May said.

Firms like Dow are emboldened by the news that U.S. natural gas production increased by 4 percent last year, even during a glut that caused low prices that discourage new drilling.

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The investment reverses Dow's vocal exodus from manufacturing in the United States, said Doug May, Dow’s business president of olefins, aromatics, and alternatives, during the Kellogg Energy Conference at Northwestern University.

"We're putting $6bn here in the U.S. Gulf Coast, betting that the gas advantage maintains for us to get a suitable return on that investment, which is into the next decade," May said.

Firms like Dow are emboldened by the news that U.S. natural gas production increased by 4 percent last year, even during a glut that caused low prices that discourage new drilling.

Read Full Article

Betting Big on Natural Gas, Dow to Invest $6Bn in Expanding Its U.S. Manufacturing Plants