Ingleside Ethylene Kick Starts Ethylene Cracker Plant Operation

Ingleside Ethylene begins operations of ethylene cracker facility in Texas, United States

United States: Ingleside Ethylene LLC, a US based 50:50 joint venture of Occidental Chemical Corp. (OxyChem) and Mexichem SAB de CV (Mexichem) have announced the onset of commercial operations of their ethylene plant in Texas. The cracker facility, set up at OxyChem’s complex at Ingleside, Texas, is currently in production stabilisation phase. The plant has an expected annual production capacity of 550,000 metric tons of ethylene. OxyChem would use ethylene for production of Vinyl Chloride Monomer (VCM), whereas Mexichem would use it for production of polyvinyl chloride (PVC resin) and PVC piping systems. Both OxyChem and Mexichem have signed a 20-year long term partnership agreement, which would enable the joint venture to capitalise on the advantages that shale gas development presents for chemical industry and focus on becoming a vertically integrated specialty chemicals company.

TechSci Research depicts that this strategic alliance between the two major companies would cater to the surge in demand for ethylene and its derivatives. With this partnership, both the companies would strengthen their respective business in global markets, by catering to the plastics and packaging industries.

According to the recently published report by TechSci Research, “Global Ethylene Market  By End Use (Polyethylene (PE), Ethylene Oxide, Ethylene Dichloride (EDC) & Others), By Region (Asia-Pacific, North America, Middle East & Africa, Europe and South America), Competition Forecast and Opportunities, 2011 - 2025”, the global ethylene market is expected to grow at a CAGR of around 11.26% during 2016-2025, on the back of growing demands for flexible packaging materials, disposable items and expanding real estate & construction sector, globally. Increasing awareness among people about package labelling and its advantages, along with production of light weight automobiles and expanding infrastructure sector in developing countries is expected to result in augmented demand for ethylene and its derivatives. Additionally, lifting of sanctions on Iran and its entry to the global market with abundant crude oil reserves and low cost feedstock availability in conjugation with discovery of shale gas reserves in North America, is expected to lead to higher production capacity of ethylene, globally. Global ethylene market is controlled by three major players, namely – SABIC, The Dow Chemical Company and Exxon Mobil Corporation.