The American Chemistry Council (ACC) has retracted a
week-old statement on its website in support of US natural
gas exports, officials with the trade group confirmed
Dow Chemical severed ties with the National Association
of Manufacturers (NAM) after that group endorsed exports and
had hinted that it could do the same with the ACC.
The statement accurately reflects executive committee
policy dating to February
2012, Scott Openshaw, a spokesman for the American
Chemistry Council, said in a statement.
However, the issue and its implications for some of
our members have evolved. We therefore plan to further discuss
this issue to assure all members views are fully
represented and the implications understood.
Dow said it was pleased the ACC removed its endorsement,
according to published media reports.
The move underscores
rising tension between the US gas industry, which seeks access
to global demand and potentially higher prices, and the petrochemical sector, which has
benefitted in recent years from relatively cheap and available
natural gas feedstock.
Dow Chemical, of course, is seeking limits on gas exports.
Dow CEO Andrew Liveris has said unchecked exports will increase
domestic prices and threaten investments in the US
Dow has accused trade groups such as NAM of siding with
member companies that are in the natural-gas industry, rather
than adopt a position of neutrality on an issue that
splits its membership.
NAM has maintained that sales of natural gas to foreign
buyers would create opportunities for US businesses, a position
on which the ACC did not disagree, at least initially.
We respect the marketplace and rely on it to determine
who the consumers of natural gas will be, ACC chief
executive Cal Dooley said a week ago, prior to the
ExxonMobil, another NAM member company, is proposing to
build a natural-gas export terminal in Texas. It has accused
Dow and other companies opposed to limitless exports of being
A study conducted last month by the US government concluded
that exports would benefit the nations
economy. There are about 15 proposed export projects awaiting approval from the
Additional reporting by Dow Jones