APLA '10: Shale gas may benefit US VAM, other C2 derivatives

07 November 2010 21:53  [Source: ICIS news]

RIO DE JANEIRO (ICIS)--The development of US shale gas could increase the nation's supply of ethane, which in turn could benefit vinyl acetate monomer (VAM) and other ethylene derivatives, an acetyls market source said on Sunday.

"We see the same type of trend," the source said on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.

VAM uses ethylene as a feedstock, and the majority of US ethylene producers crack ethane.

Shale gas reserves have pockets with relatively large amounts of ethane. However, the ethane would still need to be delivered to crackers where it could be cracked.

"We still need to see it pan out," the source said.

Proposals for shipping the ethane include pipelines or a combination of ships and pipelines.

The APLA conference continues through Tuesday.

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By: Al Greenwood
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