It’s going to be a bonanza in the first quarter for US ethylene and polyethylene producers using ethane/propane feedstock.
“Oversupply conditions in ethane stand to become materially looserover the next several years,” said the analyst.
“According to Lyondell’s data, ethane production,if maximized, would about touch 1.6m bbl/day by the second half of2014,” said Zekauskas.
“Ethane production today is roughly 1m bbl/day. Anincremental 600,000 barrels of ethane per day is capable of being used asfeedstock for 21.2 billion incremental pounds of ethylene. North Americanethylene production inclusive of projects to convert napthenic and propanecrackers to ethane is probably no more than 5 billion lbs. Accordingly, a loosemarket should slacken further,” he added.