In a bid to maximise profits form the North Amercian shale boom, Taiwan’s petrochemical giant Formosa Plastics Group decided to pour additional $2 billion into its US investment projects.
According to Wang Wen-yuan, director of the Formosa group, the move was motivated by the low priced supplies of natural gas.
The ethylene produced from shale gas costs only around $300 per tonne, compared with $900 per tonne from oil, he was cited as saying. Ethylene is an organic compound widely used in chemical industry.
Formosa Plastics Group (FPG) has diverse interests, including biotechnology, petrochemical processing and production of electronics components. The company’s expansion to the United States has resulted in the group purchasing or constructing many PVC factories and chemical production facilities in the country. FPG’s American holdings also include Texas properties containing over 200 oil wells and lands rich in natural gas, pipeline and production firms, and an ethylene plant in Point Comfort, Texas that was constructed in 1988.
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