Getting More Value from Ethylene
Ethylene is normally made from either ethane or naphtha. Because ethylene is a gas under normal conditions, it is charged into shared pipelines by the manufacturer and withdrawn from those same pipelines by converters, who make a wide range of polymers, industrial chemicals and fine chemicals used in food, medicine and many household goods. Ethylene manufacturers and ethylene converters are dependent upon one another because they operate within a small region defined by the pipeline which is the storage medium that they work through. Therefore, ethylene prices are regional. In Europe, where ethane is more expensive, ethylene is generally 15 to 40% more expensive than in the USA. In the Middle East where natural gas is plentiful, the cost to manufacture ethylene value drops to 30% to 60% of the cost in North America largely due to the lower cost of gas and naphtha in that region.
The Agility Gas Technologies, are threefold: First, provide a safer and less expensive method to move ethylene from a low cost producer to a high value location, generating more profit potential for the low cost source. Second, making ethylene from natural gas expands greatly the abundance of raw material from which ethylene can be made. Third, by making the method of moving ethylene by ship safer and lower in cost, adoption of the technology can occur more quickly.