The volatile energy markets of the past few months have resulted with ethane prices $1/mmbtu below the natural gas price. Despite the low ethane prices, the margin for cracking heavier feedstocks such as propane and butane, is superior to the margin of ethane. Ethane had long been the advantaged feedstock at the cracker. This Insight looks at whether the propane and butane advantage is a short-term phenomenon or are the current relative cracking margins here to stay.
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Insight | Dec 2014
Volatile Prices Challenging Ethylene Cash Cost Norms, Are Changes Here to Stay?
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