Taiwan’s Formosa Plastics Group to invest additional $2 billion in the U.S.

Plastic Bottle Caps
Source: DollarPhotoClub

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.

Article continues below this message

Have your opinion heard with Shale Gas International

We accept interesting, well-written opinion and analysis articles of up to 1,500 words, that offer unique insights into the shale industry. The articles cannot be overtly promotional in nature and need to fit into at least one of our content categories.

If accepted, the article must be exclusive to Shale Gas International website and cannot appear on any other websites, publications, etc. Each article may contain up to three links to external websites relevant to the content discussed in the piece.

If you would like to contribute to Shale Gas International website, please contact us at: editor[at]mw-ep.com