Manufacturers Weigh Cautious Natural Gas Price Optimism Against Trump Tariff Impacts

Executives for major industrial companies were hopeful but realistic that U.S. natural gas prices would remain competitive after fuel costs and feedstock surged in the first quarter of 2025, challenging bottom lines. However, demand may be negatively impacted, as some major manufacturers raised concerns about the impact of tariffs on their products during recent earnings calls.

“This is the deepest and longest downturn of my career,” LyondellBasell Industries CEO Peter Vanacker said earlier this month. “And while this is likely to be prolonged by volatile trade policies, I remain confident that we will eventually see a recovery.”

The chemical company, with its operations based in Houston, saw its margins pressured in 1Q2025 amid elevated ethane and natural gas prices. The higher costs particularly affected its North American polyethylene operations.