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US Mexico Will Add 18 Million Tons/year Of Ethylene Capacity

Apr 04, 2018

According to Platts Energy Advisors' March 27, Ed Dineen, chief executive of TPC Group, said on Tuesday that major olefin expansion projects in the US Gulf Coast region will have a significant impact on global butadiene trade flows. It may tend to balance supply and demand or even exceed supply, while the European market may tend to be tight.

At the meeting of the American Association of Fuels and Petrochemical Manufacturers (AFPM), Dineen told Poole Global Platts Energy Consulting Co., Ltd.: “The US will add 18 million tons of ethylene per year to this year’s expansion of the ethylene cracker, even if it is a by-product. Butadiene yield is only 3%, and the new supply of butadiene is also a very considerable number. We think this will change the fundamentals of the global butadiene market."