Dow to Build Shale-fed MEG Plant in US
Dow Chemical is shifting at least some of its investment priorities to the US from the Middle East, and in particular restructuring its engagement in Kuwait.
The forward-looking plans for a corporate makeover announced by CEO Andrew Liveris last week include, alongside the possible divestment of the farm chemicals business, the sale of Dow’s stake in its Kuwaiti joint ventures MEGlobal and Equate. Proceeds would be reinvested in the US Gulf petrochemical business.
After exiting the direct joint venture at the end of the year, Dow would receive cash of $1.5 billion but would maintain a minority interest in MEG Global through another jv with Kuwaiti partner Petrochemical Industries Company at least until 2016.
Without disclosing details, Liveris said MEGlobal will build an MEG plant somewhere on the US Gulf to take advantage of cheap shale gas-derived feedstock. The decision of where to invest would depend on incentives offered, the Dow CEO said.
The governor of the Gulf Coast state of Louisiana has stood out recently, offering enticing investment subsidies for international companies building new facilities there.