Dow Will 'Slow Something Down' If Europe Cuts Natural-Gas Use

view original post

(Bloomberg) — Dow Inc. said it will have to curb some of its operations in Europe if the region reduces its natural gas use in response to Russian supply cuts.

Most Read from Bloomberg

“We are looking at it from a standpoint of maintaining the business in Europe and trying to keep everything running in the event of a curtailment,” Chief Executive Officer Jim Fitterling said in an earnings call. “But that would mean that we’d have to slow something down.”

The European Union is proposing to cut its consumption of gas, a key feedstock for Dow’s chemicals production, by 15% over the next eight months amid mounting concern that Russia will halt exports in retaliation for sanctions after its invasion of Ukraine. US oilfield services provider Baker Hughes Co. warned this week that some of its industrial operations in Europe are bracing for power failures amid gas shortages.

In April, Dow bought a minority stake in a floating natural gas import terminal to be located near Dow’s chemicals manufacturing complex in Stade, Germany. The German government confirmed this week that the terminal is one of five that will be built to help wean the country off Russian supplies.

Read: German Decides on Location of Two More Floating LNG Terminals

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.