# Gas pipelines and city gas and Polyethylene (LDPE, LLDPE)

Their prices have moved together.

Source page: https://www.materialinsights.org/links/gas-pipelines-and-city-gas-and-polyethylene-ldpe-lldpe/

[Gas pipelines and city gas](https://www.materialinsights.org/energy/e_gas_pipelines/) (energy) and [Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) (chemical): 1 relationship.

## How they are linked

### 1. Price link: distribution pipe

*Cost and price · Strong · Both ways*

Most new low-pressure gas mains are polyethylene pipe, which is cheap and resists corrosion. The plastics proxy correlates at 0.62 for yearly moves, a link that partly reflects both prices responding to oil and gas costs.

- **0.06** monthly change correlation
- **0.62** 12-month change correlation
- **0.64** fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.