Dow Plans Shift To Ethane Cracking

Dow Chemical plans to increase its ethane cracking capabilities on the U.S. Gulf Coast by 20 to 30% over the next two to three years. To this end, the company wants to form a joint venture that would build a natural gas liquids fractionator to secure a supply of ethane for ethylene production. Dow, which calls itself the world’s largest ethylene producer, says it already produces about 55% of its ethylene from ethane. “Ethane is an advantaged feedstock in the U.S., and we anticipate a favorable oil-to-gas ratio to continue,” says Raja Zeidan, vice president of Dow’s hydrocarbons business.