U.S. Ethane and Ethane Based Petrochemical Exports Increase to Record High During 2023: EIA

U.S. ethane and ethane based petrochemical exports hit a record high of 21.6 million metric tons (MMmt) during 2023, according to an Nov. 4 report published by the U.S. Energy Information Administration. The record high export volume during 2023 is 17 percent compared to the previous year and 135 percent higher compared to when the U.S. initially began exporting ethane in 2014. The increase in exports can be attributed to an increase in domestic ethane production, which has risen with the nation’s natural gas production and the development of production and export infrastructure.

U.S. ethane production hit a record high of 3 million barrels per day (b/d) during May 2024. The increase in ethane production can be attributed to persistent growth in ethane usage in the global petrochemical sector, higher ethane and natural gas production in the Permian Basin spanning New Mexico and Texas, and favorable production economics. Ethylene is a gas utilized to produce a number of products, which include resins, plastics, and synthetic rubber.

All parts of the ethane value chain are consumed, produced and exported from the U.S., including ethylene, ethane, polyethylene and other ethylene derivatives. The volume of exports of these products largely depends on domestic demand, domestic production capability and costs, importing countries downstream processing capacity and the accessibility of infrastructure required to export these products.

U.S. ethane exports hit an all-time high of 3 MMmt during 2023, 12 percent higher compared to 2022. During 2023, U.S. ethane was mainly exported to China, which made up for 45 percent, or 1.4 MMmt of total U.S. ethane exports. U.S. ethane exports to China rose significantly during 2023, increasing 35 percent compared to 2022. U.S. ethylene export volumes declined 9 percent during 2023 to 1.1 MMmt, compared to 2022. China was also the fastest-growing country for ethylene exports. Moreover, ethylene exports to Asia rose 77 percent from 2022 to 2023. Total U.S. ethylene-derivative exports rose 20 percent to 16.9 MMmt from 2022 to 2023, driven by a 69 percent, or 2.2 MMmt increase in exports to Asia.





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