At the beginning of 2009, global ethylene production was 126.7 million tones (279 billion pounds) per year. In 2008, 7 million tones per year (tpy) were added. Ethylene production capacity in North America was about 36 million tpy (Mtpy) at the beginning of 2009. By 2013, this number is expected to decrease by 4 Mtpy. In the Mid-East, the supply of ethylene will grow from 17 Mtpy in 2008 to 28 Mtpy by the end of 2012. Between 2009 and 2013, ethylene capacity in China will expand by over 8 Mtpy.

A complicating factor is ethylene oversupply. In 2010, with 145 Mtpy worldwide capacity, demand is less than capacity by about 17 Mtpy or about 15% of capacity. Oversupply places price pressure on ethylene. With an additional 20 Mtpy ethylene capacity by 2013, the oversupply is expected to decrease to 7%. With an increase in total capacity and a decrease in surplus, it is reasonable to assume ethylene prices will increase between 2010 and 2020.

Surplus ethylene puts greater pressure on high cost producers. With higher manufacturing costs in East Asia and Europe, the profit from making ethylene is lower. Even so, high cost ethylene continues to be made because ethylene is a gas and is made locally to be used locally.

With a destination value of $5/MSCF, the liquid methane on an LNG ship with a standard capacity of 138,000 cubic meters is worth $15.3 million. A mixture of 75% ethylene/25% methane by volume, having the same mass, is worth $58.4 million at destination.

LNG contracts are generally long term contracts that in bad times, such as now, can lose money for the provider. The ability to ship ethylene with the LNG allows the LNG provider to meet LNG delivery obligations while benefitting from greater profits from ethylene delivery. Doing this can turn losses into profits. The HVG/LNG co-transport can be varied to meet changing customer demands. HVG blends or pure components can be stored in dedicated tanks and only moved to ship when needed, such as during peak customer needs or when existing HVG production plants shutdown or fail, creating local shortages.