To: Dennis Roth who wrote (183756 ) 5/6/2014 11:42:59 PM From: isopatch Respond to of 206178 Enormous NG demand infrastructure build out continues to attract strong LT capital commitments from overseas AWA domestically. (excerpted from longer article): <BASF plans record spend on U.S. plant, lured by shale gas Fri May 2, 2014 6:50am EDT By Ludwig Burger FRANKFURT, May 2 (Reuters) - BASF, the world's No.1 chemicals company by sales, said it could spend more than 1 billion euros ($1.4 billion) to build a petrochemical plant in the United States, joining global peers attracted by cheap shale gas there. Natural gas is about three times cheaper in the United States than in Europe, encouraging BASF to redirect investment away from its home region, which still accounts for more than half of group sales. The planned plant on the U.S. Gulf Coast - which would be BASF's largest investment in a single facility - would convert natural gas into propylene, a key building block for advanced materials such as insulation foams, lubricants and superabsorbants for diapers. BASF is seeking to curb its reliance on suppliers of propylene, and more in-house production will give it flexibility to make more advanced products that need propylene as input, finance chief Hans-Ulrich Engel said.> <BASF said it was still in the early planning stages for the American plant, and gave no timeframe, but it has a track record of following through with big investments after going public with proposals. "We are currently in a net buyer position for propylene. That's the key driver for considering an investment," Engel told analysts in a conference call. Propylene has mainly been made from the oil distillate naphtha, but cheap shale gas from hydraulic fracturing, or fracking, is gaining importance as a feedstock. PROJECTS The company is not alone in looking to the United States. Lobby group the American Chemistry Council said in February that the value of planned chemical industry investment projects linked to shale gas had topped $100 billion, more than half of which is from firms based outside the United States.>reuters.com