Olefins and downstream may change balance as European Natural Gas breaks charts
On Tuesday, Natural gas prices in Europe climbed to new record levels where prices were assessed in excess of 40 MMBtu. Yamal Europe pipeline, a critical natural gas pipeline of Gazprom, reversed flow from westwards to eastwards limiting supply of natural gas to the European nations. Gazprom has clarified that the move to reverse the flow is only commercial in nature while political pundits and industry experts claimed of political undertones behind the switching of gas direction. Decline in flow rate of natural gas to Europe was first reported on Saturday (17 th December 2021) which culminated into complete stoppage on 21 st December 2021. Yamal pipeline occupies a vital cog in the European natural gas equation. Impact on Olefins and their Downstream Impact of natural gas price spike may not be only limited to energy security of Europe it is likely that prolonged periods of such robust prices of natural gas will have a bearing on downstream olefins. Ethylene and propylene which...