U.S. Ethylene Producers Face Tougher Market, Plot Outages

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

As U.S. ethylene demand slows, companies like Shintech and Chevron continue to add capacity, while the overall industry scales back.

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No Room for Newcomers

After years of fast-paced growth, U.S. ethylene production is moving at a more leisurely pace. Years of massive global capacity expansions, especially along the Gulf Coast, and a slowdown in demand have resulted in an oversupplied market and weaker prices. But the U.S. remains the dominant player in the global ethylene market, representing more demand than any other country.

According to Industrial Info Resources data, the U.S. Chemical Processing Industry is home to nearly $22 billion worth of active and planned ethylene-cracker projects, while the rest of the world is home to nearly $160 billion worth.

U.S. ethylene demand is expected to total about 36.78 million tons in 2026, representing about 18% of global demand, according to data from the U.S. Energy Information Administration (EIA). Despite the overall slowdown in global demand, Shintech Louisiana LLC expects to begin construction later this year on the PEP-2 Unit at its complex in Plaquemine, Louisiana, which is designed to produce 625,000 metric tons per year. The product is expected to be used in the production of polyvinyl chloride (PVC).

Shintech is a subsidiary of Shin-Etsu Chemical Company Limited, and historically is known to invest in new capacity, even when the market is in an overall slump, investing in a long-term outlook.

The same facility is set for its SPP-4 unit addition next year, which will boost its production of chlor-alkali, vinyl chloride monomers, ethylene dichloride and hydrochloric acid. For more information, Industrial Info Resources Global Market Intelligence (GMI) Chemical Processing Plant and Project databases offer details--including capacities, investment values and necessary equipment--in a plant profile and project reports on the PEP-2 and SPP-4 units.

For more information on challenges facing the U.S. petrochemical sector, see April 29, 2026, article - U.S. Chemical Investments Shift Amid Fertilizer Crisis.

By the Numbers

• Nearly $22 billion: Total investment in ethylene-production projects across the U.S.
• 95: U.S.-based ethylene units tracked by Industrial Info Resources, of which 58 are online
• 689: Non-U.S. ethylene units tracked by Industrial Info Resources, of which 299 are online

Chevron Phillips Readies for Addition

Chevron Phillips Chemical Company LP, a 50/50 joint venture between Chevron Corporation and Phillips 66, is at work on its own capacity addition at its olefins complex in Orange, Texas. Chevron started construction in 2022 on a 4.1 billion-pound-per-year ethylene cracker. For more information, readers can consult a detailed plant profile and project report.

Industrial Info Resources is tracking activity at ethylene units across the U.S., including those online, planned, under construction or offline. For more information, Industrial Info Resources Global Market Intelligence (GMI) Unit Database offer details on each of the units--including feedstock and output capacities, technological components and contact information--in a list of unit profiles.

Readers also can learn about ethylene units outside the U.S. from a list of unit profiles.

Outage Outlook

In addition to the big-ticket capital-spending projects, Industrial Info Resources is tracking 36 maintenance-related outages at ethylene plants across the U.S. that are set to kick off through 2030. These projects total roughly $1.85 billion of investment, though that number could fluctuate in years to come.

Industry players preparing for outages include Chevron Corporation, Dow Incorporated, LyondellBasell Industries NV and Exxon Mobil Corporation, among others. For more details, readers can consult a list of project reports.

Globally, Industrial Info Resources is tracking 141 maintenance-related outages at ethylene plants that are set to begin through 2030, with a total investment of a little more than US$1 billion. For more details, readers can consult a list of project reports.

Industrial Info Resources also offers a full list of reports for active and planned ethylene-cracker projects across the U.S., and a full list of reports for active and planned ethylene-cracker projects outside the U.S.

Key Takeaways

• Ethylene demand is slowing worldwide, following years of massive capacity buildouts in the U.S.
• Chevron has been at work on its own capacity addition since 2022.
• More than 170 maintenance-related projects at ethylene plants are expected to begin worldwide through 2030.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).