Ethane at Mont Belvieu, the main supply hub for Gulf Coast chemical makers, dropped to 22.25 cents a gallon at 10:06 a.m. in New York, according to Liquidity Partners data compiled by Bloomberg. That’s the lowest price since at least Jan. 28, 2008.
Ethylene is used to make polyethylene plastic, an ingredient in packaging, and hundreds of other chemicals. Dow, LyondellBasell Industries NV (LYB) and Westlake Chemical Corp. (WLK) are among producers expanding U.S. ethylene production to take advantage of low gas prices, which have fallen as new drilling methods have increased output from shale formations.
To contact the reporter on this story: Jack Kaskey in Houston at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com