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Released April 07, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Energy Information Administration (EIA) expects U.S. ethane consumption to average 2.1 million barrels per day (BBL/d) in both 2022 and 2023, driven by higher demand by the petrochemicals sector. Consumption has grown every year since 2010, and more of the petroleum product is consumed in the country than either jet fuel or propane, according to the EIA's Wednesday Today in Energy report.
Consumption of ethane, a feedstock used to produce ethylene, grew by 50,000 BBL/d in 2021, the EIA said. Industrial Info is tracking more than $28 billion worth of active projects in the U.S. that are tied to the production of ethylene and its derivatives. Subscribers to Industrial info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
"Domestic ethane consumption over the past two years has increased due to increased ethylene cracking capacity," the EIA said. "In contrast, consumption of most other petroleum products has decreased these past two years as a result of less travel during the COVID-19 pandemic.
Growth in ethylene consumption will be driven this year by Shell plc's (NYSE:SHEL) (London, England) soon-to-be commissioned ethylene unit in Monaca, Pennsylvania, and by higher utilization rates at existing units. The startup and commissioning of the 1.5 million metric-ton-per-year Monaca facility is expected in May. Subscribers can click here for a report on Shell Plc's ethylene facility in Monaca.
"In the United States, cracking ethane has a higher profit margin than cracking naphtha to produce ethylene, a key component needed to produce many resins and plastics," the EIA noted.
U.S. ethane consumption grew in 2021 despite the mid-February winter storm on the U.S. Gulf Coast, which took more than one-third of U.S. ethylene cracking capacity offline.
Click on the image at right showing U.S. ethane consumption since 2010.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Consumption of ethane, a feedstock used to produce ethylene, grew by 50,000 BBL/d in 2021, the EIA said. Industrial Info is tracking more than $28 billion worth of active projects in the U.S. that are tied to the production of ethylene and its derivatives. Subscribers to Industrial info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
"Domestic ethane consumption over the past two years has increased due to increased ethylene cracking capacity," the EIA said. "In contrast, consumption of most other petroleum products has decreased these past two years as a result of less travel during the COVID-19 pandemic.
Growth in ethylene consumption will be driven this year by Shell plc's (NYSE:SHEL) (London, England) soon-to-be commissioned ethylene unit in Monaca, Pennsylvania, and by higher utilization rates at existing units. The startup and commissioning of the 1.5 million metric-ton-per-year Monaca facility is expected in May. Subscribers can click here for a report on Shell Plc's ethylene facility in Monaca.
"In the United States, cracking ethane has a higher profit margin than cracking naphtha to produce ethylene, a key component needed to produce many resins and plastics," the EIA noted.
U.S. ethane consumption grew in 2021 despite the mid-February winter storm on the U.S. Gulf Coast, which took more than one-third of U.S. ethylene cracking capacity offline.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
