MOSCOW (MRC) -- The Federal Trade Commission will seek to deter "unlawful" mergers in the oil and gas industry and crack down on practices that may be harming consumers at the gasoline pump, FTC Chair Lina Khan told the White House in a letter, reported Reuters.
The letter, obtained by Reuters, was addressed to White House economic adviser Brian Deese and promised to start an investigation of abuses in the "franchise market" for retail fuel stations, among other steps.
Khan told Deese she was concerned that the FTC's approach to merger reviews in recent years had "enabled" significant consolidation in the industry and created "conditions ripe for price coordination and other collusive practices."
To tackle the issue, she said the FTC would "identify additional legal theories" to challenge mergers in which dominant players in the industry were buying up family-run businesses. She said the commission would also study its policies that require divestitures during mergers of fuel stations in overlapping markets to ensure that that was not encouraging further consolidation and anticompetitive behavior.
Lastly, she said the commission would probe practices related to fuel stations that are franchised.
As MRC informed previously, in May 2021, Chevron Corp. and Noble Midstream Partners LP announced that the companies had completed the previously announced acquisition, which resulted in Noble Midstream becoming an indirect, wholly-owned subsidiary of Chevron.
We remind that Chevron Phillips Chemical (CP Chem) halted production at its cracker in Sweeny (Old Ocean, TX, USA) on February 15, 2021, due to cold weather. Extreme cold and instability of power supply and fuel gas supply systems led to shutdowns of existing crackers No. 22, 24 and 33 and the production of polyethylene (PE). The company's total production capacity in Sweeney is 1.975 million tonnes per year of ethylene, 165,000 tonnes of propylene, 500,000 tonnes of high densty polyethylene (HDPE) and 500,000 tonnes of linear low density polyethylene (LLDPE).
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
mrcplast.com