Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.

US ethylene industry to expand 35% by 2017

12.13.2012  |  HP News

The ongoing shale gas revolution is boosting prospects for the US ethylene sector, which could raise its capacity by more than a third by 2017, according to a new report. Strong ethane production has helped to lower prices and made the US petrochemicals industry more competitive.


The ongoing shale revolution will guide the US ethylene industry surge in the near future, growing by more than a third by 2017, according to a new report from business intelligence group GlobalData.

According to Thursday's report, US ethylene capacity dropped from 27.089 million tpy in 2000 to an estimated 26.137 million tpy in 2012.

However, increased investments in the industry will see this figure jump to 35.048 million tpy by 2017 – an increase of just under 35%.

In correlation with the recent surge in shale gas output, the production of natural gas liquids (NGLs) has increased significantly, the report notes. Ethane, a hydrocarbon almost exclusively used in petrochemical production, is a major component of NGLs and is cracked to produce ethylene.

In response, investors have been keen to be a part of an ethylene industry on the rise, and many major US ethylene producers are investigating the possibility of bringing new plants online with capacities of more than 1 million tpy in the near future.

Strong ethane production has also lowered prices and made the US petrochemicals industry much more competitive than in previous years, the GlobalData report says. 

Five years ago, the US was one of the most expensive places to produce ethylene, but the ethane-based US petrochemicals industry is now in a better position than the naphtha-based petrochemicals industries of Europe and Asia-Pacific, and second only to the Middle East in terms of production economy.

For more details on the GlobalData report, click here.

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.


what is the expected % growth of the employment in this petrochemical industry

Related articles


Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry


Is 2016 the peak for US gasoline demand?




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2016 Hydrocarbon Processing. © 2016 Gulf Publishing Company.