BAKU, Azerbaijan, April 6. In 2023, ethane production in the US went up by 9 percent, reaching an average of 2.6 mb/d, Trend reports.
According to the US Energy Information Administration Agency (EIA), this increase was mainly due to a record-high natural gas production.
The Texas Inland and New Mexico refining districts, covering the Permian Basin, contributed to 61 percent of total US ethane production in 2023, the agency noted. These districts maintained an average production of 1.6 mb/d, similar to 2022 levels. Additionally, production in the Appalachian No. 1 Refining District, spanning most of the Appalachian Basin production area in Pennsylvania and West Virginia, made up 11 percent of the total US ethane production, which was also similar to 2022 levels.
Meanwhile, last year, US ethane exports hit an all-time high, averaging 471,000 b/d, which was 57,000 barrels more than the previous record set the year before. The increase in exports was fueled by growing demand from the global petrochemical sector and the availability of more tanker capacity, the EIA explained. The record exports were also supported by the lower prices of US ethane compared to other similar materials worldwide. China was the largest importer of US ethane in 2023, accounting for 45 percent of exports, followed by India (16 percent), Canada (14 percent), and Norway (10 percent).
Looking ahead, the EIA anticipates that US ethane production will increase to an average of 2.7 mb/d in 2024 and 2.8 mb/d in 2025. Ethane consumption in the US is expected to rise, reaching an average of 2.2 mb/d in 2024 and 2.3 mb/d in 2025. Meanwhile, exports are predicted to remain steady, averaging 500,000 b/d in 2024 and 490,000 b/d in 2025.