Investments in North American ethylene producing assets could reach $40-50 billion over the next decade, according to new research by Wood Mackenzie. Domestic demand for ethylene derivatives is expected to grow more slowly than planned capacity increases. This will lead to threefold growth in derivative exports over the next 15 years. Global ethylene demand is set to grow by 3.3% per year over that period.
“The development of shale gas resources in North America has triggered an ethylene investment renaissance, with the abundance of competitively priced natural gas liquid feedstocks, particularly ethane,” said Stephen Zinger, head of Americas chemical research at Wood Mackenzie.
Chemical manufacturers have stepped up investments in new ethylene production capacity in recent years. Firms such as Shell, Axiall and Formosa Plastics, among others, have proposed building new facilities in North America.
