Ethylene Expansion

With Formosa Plastics’ confirmation last week of plans for a world-scale ethylene plant at Point Comfort, TX there are now at least five new crackers announced in the U.S., plus several more incremental additions planned. More expansions are likely. Even though U.S. ethylene capacity announcements continue to swell, demand has not. U.S. ethylene demand, roughly 30 million m.t. in 2011, is still below its 2007 peak of 31.6 million m.t., according to estimates from IHS Chemical. U.S. producers shut nearly 3 million m.t./year of ethylene capacity in response...

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