February 19, 2025 – Ethane Cracking for Ethylene Production: A Growing Trend in the Global Chemical Industry
Ethane cracking is increasingly becoming the preferred method for ethylene production worldwide, thanks to its economic advantages that have captured the attention of numerous companies. Recently, Wanhua Chemical announced plans to diversify the raw materials for its existing 1 million tons/year ethylene plant by replacing propane with ethane, aiming to reduce production costs. This move underscores the growing significance of ethane in ethylene manufacturing.
Ethane cracking facilities are rapidly gaining popularity globally due to their efficiency and environmental friendliness. Compared to other production methods, ethane cracking produces fewer byproducts, boasts higher ethylene yields, and consumes less energy while emitting lower carbon emissions. In recent years, the global ethylene industry has accelerated its shift towards lighter feedstocks, with ethane cracking capacity accounting for an increasing share. Particularly in regions rich in ethane resources, such as the Middle East and North America, ethane cracking has become the primary means of ethylene production.
According to AsiaMB’s industry insights, China’s ethane cracking facilities for ethylene production have also witnessed rapid development. Since the commissioning of the first ethane cracking unit in 2019, as of February 2025, China has eight operational ethane cracking units with a total capacity of 6.88 million tons, accounting for 12% of the country’s total ethylene production capacity. These units are primarily concentrated in East China, with some relying on local oilfield natural gas for raw materials, while others depend on imported ethane.
In the global ethane supply landscape, the United States holds a dominant position, with its ethane output accounting for approximately 50% of the world’s total. Thanks to the shale gas revolution, U.S. shale gas contains a high percentage of ethane, providing the country with abundant ethane resources. In addition to meeting domestic demand, the United States also exports a significant amount of ethane, making it the world’s largest ethane exporter.
China is a crucial importer of U.S. ethane. Since the commissioning of the first ethane cracking unit, China’s imports of ethane from the United States have continued to grow, with its share of total U.S. ethane exports also on the rise. By 2024, China’s imports of ethane from the United States are expected to exceed 80 million barrels, making it the largest destination for U.S. ethane exports.
However, ethane export and transportation capacities constrain the full utilization of U.S. ethane production. Ethane is gaseous at room temperature and pressure and needs to be transported in a liquid state at low temperatures, requiring specialized Very Large Ethane Carriers (VLECs). Currently, the number of VLECs is limited, and their construction takes a long time, making ethane transportation a constraining factor. To address this issue, the United States is actively expanding ethane export terminals and increasing the delivery of VLECs.
With the delivery of newly built VLECs and the enhancement of ethane terminal export capacities, U.S. ethane exports are expected to continue to increase in the future. This will provide more options for ethane-importing countries like China and further promote the development of the ethane cracking for ethylene production industry.