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October 1, 2012

Shale Gas Ushers In Ethylene Feed shifts

Growth in North American ethane cracking has wider effects for the CPI, while some companies look to harness methane for ethylene

Higher margins on steam-cracking ethane to produce ethylene have resulted in an expansion of ethylene capacity to take advantage of the increased availability of ethane from natural gas. The shift toward ethane feedstocks for ethylene is generating a number of ripple effects, including tightness in the propylene and butadiene markets. Meanwhile, as manufacturers take advantage of lower energy costs offered by shale gas, other companies pursue alternative routes to ethylene using methane...

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