US to meet global demand olefins, polyolefins

OREANDA-NEWS. December 02, 2015. LyondellBasell predicts that the US will meet increasing global demand for olefins and polyolefins through the end of the decade because of its NGL feedstock advantage.

"Through the end of the decade, [US] ethylene and polyethylene markets will be fairly balanced with very little, if any, cycle as a result of new expansions," chief executive Bob Patel told investors at the Citi Basic Materials conference this morning.

Despite increasing LPG exports, US propane inventories are at a record high entering the winter heating season. Even if ethane prices increase, abundant propane and butane will displace ethane in the US cracker feed slate, Patel said.

"We still believe there are 400-500 b/d of ethane being rejected. That is enough to supply all the [US] ethylene expansions planned before the end of the year," Patel said. "Even after new capacity comes online, the abundance of propane will allow the US to sustain its advantage."

LyondellBasell is currently undergoing an expansion in US ethylene production. It expects to complete a de-bottlenecking project at its Corpus Christi, Texas, plant that will add 800mn lb/yr of capacity in the third quarter of 2016.

The company also expects the global polyethylene balance to remain tight over the next two-to-three years, providing of export opportunities.