The US has experienced a renaissance in petrochemicals due to the abundance of ethane from shale gas. As a result of the increasing NGL production from various shale plays, there have been a total of 17 announced greenfield steam crackers in the US. Since much of the NGL production boom has come from the Northeast US, we wanted to take a look at ethane cracker projects in that area and assess their progress.
Posts tagged ‘steam crackers’
March 1, 2016 00:01 UTC
February 26, 2016 12:19 UTC
Earlier this week we attended the NGL Feedstocks and Derivatives: Global Supply & Demand Dynamics 2016 conference in Houston, hosted by the American Business Conferences. During the presentations, Q&A sessions, round-table discussions, and our conversations with the industry during networking breaks, we debated the questions around exporting NGLs and petrochemicals out of the US.
The best response when asking tough market questions was, “Well, it depends.”
February 2, 2016 00:01 UTC
On Jan. 20, WTI and Dated Brent closed at $26.54/b and 25.96/b, respectively, the lowest we have seen oil prices since 2003. Since then we have seen prices rise and hover around the $30/b level.
Unlike ethane, naphtha is highly correlated with the price of oil. Therefore, fluctuations in global oil prices will have a major impact on steam crackers, more so in Europe and Asia where most producers utilize naphtha as a feedstock for producing ethylene.