Ethylene production in H1-2014 in USA was 2 bln lb less than in H2-2013, as per Petral Consulting Co., based on results of its monthly survey of ethylene plant operating rates and feedslates, as reported by ogj.com.
Production curtailments from all causes seen in Q2-2014 were almost 300% more than in Q1-2014. While ethylene production during the first two quarters of 2014 averaged less than output in H2-013, US producers still managed to increase ethylene inventories by almost 200 million lb in Q1-2014, according to statistics from the industry association American Fuel and Petrochemical Manufacturers (AFPM). Petral Consulting estimated in July that further reductions in ethylene production rates during second-quarter 2014 decreased ethylene inventories in US Gulf Coast storage by at least 0.3-0.5 billion lb and expects the resulting tight supply to persist into September or October. AFPM statistics confirmed the July estimate in its second-quarter 2014 statistical report, which showed ethylene inventories fell by 679 million lb. By the end of Q2-2014, additional ethylene production capacity was preparing to come online. LyondellBasell plans to begin production from the expansion of its LaPorte, Tex., plant during third-quarter 2014 (OGJ, July 7, 2014, p. 90; OGJ Online, July 28, 2014), while Williams Olefins LLC's plant at Geismar, La., is scheduled to return to service in September. Petral Consulting estimates the ethylene industry's operating capacity in Q3-2014 will increase by 2.8 billion lb/year (7.5 million lb/day), and higher production rates will enable the industry to rebuild inventory by yearend 2014.
03-Sep-14 
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