About the ExchangeChemConnect Acquires Natural Gas Liquids Trading Platform from Altra Energy
Strategic consolidation of buying and selling opportunities in wholesale chemical feedstocks immediately increases liquidity
Houston, TX (March 25, 2002) - ChemConnect Inc., which operates the leading online marketplace for chemicals and plastics, today announced it has acquired the natural gas liquids (NGL) trading platform of Altra Energy Technologies, Inc. The strategic consolidation, which offers ChemConnect Members immediately increased liquidity in natural gas liquids (NGLs), also provides greater access to comprehensive and reliable market information and further enhances opportunities for incorporating risk management tools in daily business processes. Altra's customers will benefit from having access to the full range of chemicals and plastics buying and selling opportunities that ChemConnect provides.
"Natural gas liquids are basic building blocks in our industry. As with other commodities, their cost and availability impact the entire supply chain," said John Robinson, ChemConnect CEO. "By consolidating online NGL trading on ChemConnect, we are providing buyers and sellers of chemicals and plastics, as well as pure-play NGL traders, access to expanded trading opportunities in both NGLs and complementary products. This is a natural next step for ChemConnect as we continue to expand our offerings to provide online solutions that match our Members' daily business processes."
NGLs, which include ethane, propane, butanes, and natural gasoline, are used as feedstocks and as fuel for refineries and petrochemical plants. ChemConnect Members conduct NGL spot and over-the-counter forwards trades on the company's Commodity Exchange, where butanes and natural gasoline are available. Now, ChemConnect's NGLs will be supplemented by Altra's 7,300 monthly transactions in those products and complemented by the addition of ethane and propane.
Besides the expanded market for buying and selling opportunities, the acquisition will also foster a deeper and wider view of market conditions in the global chemical market. As trading liquidity increases, access to reliable information on prices and supply and demand trends also grows, providing ChemConnect Members with strategic information that can help them make better buying and selling decisions on a daily basis.
By the same token, over-the-counter forwards trading opportunities will be enhanced for both ChemConnect and Altra's Chalkboard customers. Buyers and sellers of NGLs have long been active in paper trading. Now they will have the further advantage of being able to use ChemConnect's Commodity Exchange to engage in forward transactions and manage risk across the full spectrum of the chemical value chain at the same time, and from the same desktops, from which they are conducting their spot physical trades.
About ChemConnect
ChemConnect is a leader in helping customers optimize their purchasing and sales processes for chemicals, plastics, and related products through a unique combination of market information, industry expertise, e-commerce solutions, and an active network of trading partners. More than 7,500 Member companies in multiple industries around the world can use ChemConnect's highly efficient tools and services to streamline transactions and lower costs. Visit www.chemconnect.com for more information.
For more information, please contact:
Bob Osmond
UpStart Communications
(510) 457-3111
bosmond@upstart.com
Liz Youngs
UpStart Communications
(843) 881-5751
lyoungs@upstart.com
Note to Editors: ChemConnect is a registered trademark of ChemConnect, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.