U.S. Gulf Coast Ethylene Producers Race to Cheap Feedstock
Posted on June 22, 2012 at 05:34 AM EDT
SUGAR LAND--June 22, 2012--Researched by Industrial Info Resources (Sugar Land, Texas)--For the past two years, ethylene producers across the U.S. Gulf Coast region have considered expansion plans to increase production capacity in response to steadily declining feedstock costs. Over the last year, as the long-term outlook began to show signs of prolonged price advantages for ethane, the primary ethylene feedstock in North America, plans for new capacity quickly escalated not only to expansions, but also to grassroot capacity and new unit additions. Most of these investments are being driven simply by ethane feedstock cost advantages compared to traditional naphtha-based ethylene elsewhere in the world, while only minimally by influenced by demand. Other companies featured: Exxon Mobil Chemical Company (NYSE:XOM) , The Dow Chemical Company (NYSE:DOW)