Will RIL and other petrochem players lose their competitive advantage soon?
Will large Indian players, such as RIL, lose their comparative advantage in the manufacture of petrochemicals? 8The answer could well be a "yes". 8Cost and availability of feedstock plays a big role in provide the much needed comparative advantage 8Low prices ensure that US ethane crackers enjoying a clear cost advantage over naphtha crackers elsewhere. 8The rapid increase in shale gas production has given the US some of the lowest gas prices in the world and this resulted in a glut of natural gas liquids, especially ethane, providing a huge boost to the petrochemical industry. 8On the other end of the spectrum, low cost of crude will provide Saudi Arabia a huge advantage in naphtha based cracking 8All of these developments leave India at a comparative disadvantage, it seems Click on Reports for more