The Qatari petrochemicals industry is set to continue its capacity surge, but BMI warns that high ethane prices and a lack of downstream diversification and added value could erode margins and upset its chances of competing in the global market in the long term. Of concern are the potential constraints on Qatar’s ethane availability and the cost of supply. The Qatari authorities may decide to limit gas production to extend the lifespan of productive fields and could raise prices further. Already gas costs are exceeding US$3.00/mn BTU and this could erode Qatar’s competitive advantage against new US capacities, although the …
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