U.S. Ethane Could Be the Big Winner of Asia’s Shift in Petrochemicals Feedstock ...Middle East

U.S. ethane production and exports are set to benefit from petrochemical firms in Asia shifting feedstock from naphtha to the cheaper ethane as chemicals margins shrink. Ethane, a natural gas liquid primarily extracted from raw natural gas during processing, is mainly used as a feedstock for ethylene production, one of the most important building blocks in the petrochemical industry. Some petrochemical producers in Asia, including in South Korea, Thailand, and China, have been looking to boost the use of ethane, especially such sourced from the…

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