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Polyethylene19-Aug-2024
SINGAPORE (ICIS)–Click
here to see the latest blog post on Asian
Chemical Connections by John Richardson.
STILL WAITING FOR the end of the chemicals
downturn? If so, I believe you are wasting
precious time. Read in detail in today’s blog
and see my ten summarised reasons below. Print
this off and pin it on your boardroom wall:
Most of the G20 countries, which account
for more than 70% of global polyethylene demand
(chemicals and polymers are equivalent to
economic activity) is ageing.
Immigration is of course the answer to some
extent, but this is politically very difficult
in the West.
In the regions and countries where
populations are youthful, not enough people –
because of politics in the West – are likely to
be able to move to the rich world for better
economic opportunities, and to escape conflicts
and the effects of climate change.
Climate change will more likely be
successfully mitigated in the rich world. But
the risk is that the Developing World ex-China
does not get the financing and technologies it
needs to mitigate the impact of climate change.
China is the immediate centre of the crisis
for the global chemicals industry because
global capacity was added on wrong growth
assumptions. China’s chemicals demand growth
could turn negative because of an ageing
population, the end of the real-estate bubble
and geopolitics.
Geopolitics mean that we are likely to see
a change in chemicals trade flows. A bipolar
world – one centred on China and its allies and
the other on the US and its allies – is one
outcome
The oil and gas majors could end up
dominating chemicals to compensate for
declining oil demand due to electric vehicles
and fuel efficiency, as China moves to
chemicals self-sufficiency by itself and/or
with imports largely from its geopolitical
partners in the Middle East
We are in the early stages of a new
industrial revolution driven by sustainability
As was the case with the start of the first
industrial revolution, it is impossible to say
what will be the winning and losing
technologies.
For chemical companies without strong
feedstock advantages, without the right
geopolitical locations- and which have too much
exposure to the diminishing China import
markets – it is success in sustainability that
is the route to new competitive advantage.
Editor’s note: This blog post is an opinion
piece. The views expressed are those of the
author, and do not necessarily represent those
of ICIS.
Speciality Chemicals19-Aug-2024
LONDON (ICIS)–Here are some of the top stories
from ICIS Europe for the week ended 16 August.
Europe MA prices remain under upward pressure
as new production issue curbs Sept
availability
European maleic anhydride (MA) spot prices
continue to be under upward pressure this
week as constraints in northwest Europe seem
poised to restrict availability for
September, too.
Europe fatty alcohol spot prices stabilise
after bullish H1 August
European mid-cut fatty alcohol spot prices
held steady this week after two consecutive
weeks of €50/tonne increases.
Eurozone chemical production up in June, Q2
GDP rises 0.3%
Chemical production firmed in the eurozone
for the second consecutive month amid a wider
decline in industrial production during the
month, with GDP in the region continuing to
firm, growing by 0.3% in the second quarter.
Germany’s Aug economic outlook down on US
economy, Mideast concerns
Sentiment for Germany’s economic outlook fell
sharply in August on concerns over the US
economy and the protracted conflict in the
Middle East.
MA rebounds in northwest Europe on new
outage, price gap with south of region
grows
European maleic anhydride (MA) spot prices
firmed this week on supply constraints in
northwest and central Europe that arose in
the first half of the week.
Gas19-Aug-2024
SINGAPORE (ICIS)–Here are the top stories from
ICIS News Asia and the Middle East for the week
ended 16 August 2024.
China July industrial output growth slows; H2
outlook dims
By Nurluqman Suratman 15-Aug-24 16:49 SINGAPORE
(ICIS)–China’s industrial output growth in
July slowed to a four-month low of 5.1%,
aggravating concerns about continued
manufacturing slowdown, with a growing set of
data suggesting the world’s second-largest
economy is struggling to gain momentum.
Asia PBT market faces logistical challenges
amid Q3 lull
By Corey Chew 15-Aug-24 10:29 SINGAPORE
(ICIS)–The Asia polybutylene terephthalate
(PBT) market saw the Indian region being
affected by logistical challenges to a larger
extent compared to northeast Asia.
Major S Korea producers withdraw ADD probe
petition against China SM
By Luffy Wu 14-Aug-24 18:45 SINGAPORE
(ICIS)–South Korean producers Hanwha Total
Energies and Yeochon NCC are withdrawing their
request for an antidumping probe on styrene
monomer (SM) imports from China, based on a
petition they filed with the Korea Trade
Commission on 12 August.
Singapore’s 2024 key exports growth forecast
trimmed on demand concerns
By Nurluqman Suratman 13-Aug-24 15:30 SINGAPORE
(ICIS)–Singapore’s non-oil domestic exports
(NODX) growth forecast for 2024 has been
revised downward to 4-5%, Enterprise Singapore
(EnterpriseSG) said on 13 August.
China July petrochemical index falls as demand
remains sluggish
By Yvonne Shi 12-Aug-24 15:55 SINGAPORE
(ICIS)–The ICIS China petrochemical index
dropped by 3.07% month on month to 1,241.5 in
July, with acetone experiencing the largest
decline due to weak downstream demand.
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Ammonia16-Aug-2024
TORONTO (ICIS)–US and Canadian chemical
distributors and other trade groups are warning
about potentially “catastrophic” impacts of a
rail disruption that could start in Canada next
week.
Railroads Canadian Pacific Kansas City (CPKC)
and Canadian National (CN) said they may start
to lock
out workers starting Thursday, 22 August,
if no progress is made on reaching new
collective agreements.
Ahead of the potential lockout, the railroads
have already embargoed certain shipments.
The US Alliance for Chemical Distribution (ACD)
and Canadian group Responsible Distribution
Canada (RDC) said the disruption would affect
“a myriad of hazardous materials”, in
particular chlorine for drinking water.
Municipalities do not have weeks of chlorine
stocks, meaning that a supply disruption will
pose a risk to public health and safety, the
groups said.
ACD and RDC member companies serve as
intermediaries for municipalities, receiving
rail shipments of chlorine and other water
treatment chemicals and then shipping them to
end-users.
The chemical distribution trade groups said
Canada’s labor minister, Steven MacKinnon,
needed to intervene.
However, he rejected the call by
CN to step in and refer the dispute to the
Canada Industrial Relations Board (CIRB) for
binding arbitration.
Canada’s government believes in the collective
bargaining process “and trusts that mutually
beneficial agreements are within reach at the
bargaining table,” the minister said on
Thursday.
In a ruling last week, the
CIRB held that no rail services, even for
chlorine, needed to be maintained during a
strike or lockout.
Canada’s chemical and other industries had
urged the CIRB to order that minimum rail
services be maintained during any industrial
action to ensure the delivery of chlorine to
water-treatment facilities, as well as other
essential goods and fuels.
For chlorine, a chlor-alkali plant in North
Vancouver supplies both Western Canada and the
US West with liquid chlorine for use in
drinking water.
TRADE WITH US AT STAKE
John Corey, president of the Freight Management
Association of Canada, said a rail disruption
would not only shut Canada’s economy down but
it would also affect the US, given the high
level of integration between the two countries.
CN and CPKC are Canada’s only two freight
railroads and industry has no alternative to
rail to ship product into and out of the
country, Corey said in a webcast media
briefing.
A rail disruption would further hurt Canada’s
reputation in the US as a “legitimate trading
partner”, he warned.
“The Americans are looking up at us and saying,
‘What are you doing to fix this?’,” he added.
The labor contracts at both CN and CPKC expired
on 31 December 2023 – but the issue has yet to
be resolved as Canada seems to be
“sleep-walking”, he said.
He reminded of the damage caused by last year’s
13-day strike at Canada’s West Coast port
strike and the 2022 blockade of the
Ambassador Bridge from Windsor in Ontario to
Detroit, Michigan – events from which Canada
seems to have “learned very little”.
If Canada continues to have this kind of
disruptions and is unable to deliver product to
its largest trading partner by far, the US
would have to think of alternatives, he said.
The current labor uncertainty has already
impacted supply chains, he said.
If the rail service shuts down on 22 August,
ports will shut down within two days because no
product is able to get into and out of ports,
he said.
For each day that the rail service is down it
will take one week to get supply chains back to
normal, meaning that a 10-day disruption could
impact the supply chain until the end of the
year, he noted.
Canada’s government needs to take “some action”
if the rail service is disrupted next
week.
“Back-to-work legislation” was one option, but
it was also an admission that the labor
negotiation process is flawed, he said.
Binding arbitration, which is used to settle
labor disputes involving police or
firefighters, would be a better option, but the
government seems to have ruled that out, he
said.
CHEMICALS AND RAILThe
bulk of Canada’s chemical production is
exported to the US and Canadian chemical
producers rely on rail to ship more than 70% of
their product, with some exclusively using
rail.
Without a rail service, chemical producers
could be forced to shut down plants within a
week, trade group Chemistry Industry
Association of Canada (CIAC) has said.
The Canadian chemical sector moves over 500
railcars/day and it requires over 1,500
road-based tanker trucks to carry the same
load, according to the CIAC. However, the
trucking industry does not have that kind of
capacity.
Furthermore, the movement of many chemical
products is restricted to rail due to their
hazardous nature.
According to CIAC data, more than Canadian
dollar (C$) 76 million (US$55 million) of
industrial chemical products move on Canada’s
rail network daily, or C$28 billion each year.
Chemicals account for nearly 10% of all
Canadian rail traffic.
Furthermore, the chemical industry’s customers
in the automobile, forest products, minerals
and other industries ship most of their product
by rail.
Elsewhere, about 75% of all fertilizers
produced and used in Canada is moved by rail.
The following table by the American Association
of Railroads (AAR) shows Canadian freight rail
traffic, including chemicals, for the week
ended 10 August and the first 32 weeks of 2024:
In recent earnings calls, chemical company
Chemtrade Logistics,
midstream energy firms Pembina and Keyera, fertilizer
major Nutrien and others
have raised the rail disruption as a concern,
and railroad CN reduced its 2024 earnings
guidance citing the impact of the labor
uncertainty.
The rail disruption threat comes as Canada’s
economy is facing a shallow downturn.
(US$1 = C$1.37)
With additional reporting by Adam
Yanelli
Thumbnail photo source: Canadian
National
Recycled Polyethylene Terephthalate16-Aug-2024
LONDON (ICIS)–Senior editor for recycling,
Matt Tudball, discusses the latest developments
in the European recycled polyethylene
terephthalate (R-PET) market, including:
Growing number of enquiries for food-grade
pellets in August
Actual confirmed deals remain limited
Buyers take various approaches to pellet
purchasing
Wider R-PET market stable due to holidays
Crude Oil16-Aug-2024
SINGAPORE (ICIS)–Malaysia’s economy is
expected to maintain a strong growth momentum
in the second half of the year, after expanding
at a faster annualized rate of 5.9% in Q2, on
the back of improving domestic spending and
external demand.
Q2 marks fastest GDP growth in six quarters
Petroleum and chemical products led Q2
manufacturing growth
Robust demand for non-electronics goods to
boost exports
On a quarter-on-quarter seasonally adjusted
basis, the economy expanded by 2.9% in April
June, accelerating from the 1.5% expansion in
Q1 2024, Bank Negara Malaysia (BNM) – the
country’s central bank – said on Friday.
Q2 growth was primarily driven by stronger
domestic demand and further expansion in
exports, according to BNM.
For the whole of 2024, BNM forecasts the
economy to post a 4-5% GDP growth, stronger
than the 3.7% growth in 2023.
The final year-on-year Q2 GDP print was revised
up from the previous estimate of 5.8% and
represented a strong acceleration from the 4.2%
expansion in the preceding quarter.
At 5.9%, the Q2 GDP growth was fastest
quarterly growth recorded since Q4 2022,
according to the Department of Statistics
Malaysia showed.
Malaysia is southeast Asia’s fifth-largest
economy and a net exporter of polyolefins.
It is also one of the largest producers and
exporters of oleochemical products worldwide,
contributing about 20% to global capacity,
according to the Malaysian Petrochemicals
Association (MPA).
The country’s central bank expects household
spending to remain strong in H2, driven by
employment and wage growth and policy support.
Investments will be fueled by ongoing projects,
while exports will benefit from the global
technology upcycle and robust demand for
non-electronics goods, it said.
However, downside risks include weaker external
demand, geopolitical tensions, and lower
commodity production, BNM said.
CHEMICALS LEAD Q2 MANUFACTURING
GROWTH
The manufacturing sector registered in
April-June 2024 grew by 4.7% year on year, up
from 1.9% in the previous quarter, aided by a
broad-based improvement across all sub-sectors.
The petroleum, chemical, rubber, and plastic
products segment led the expansion, with Q2
annualized growth accelerating to 4.1% from
1.1% in Q1.
Q2 final consumption expenditure rose by 5.6%
year on year, up from 5.1% in Q1, as private
spending increased by 6.0%, up from 4.7% in Q1.
Exports for the period rose by 8.4%, outpacing
Q1’s 5.2% growth, while imports posted a faster
growth of 8.7% compared with 8.0% in Q1.
Focus article by Nurluqman
Suratman
Polyethylene16-Aug-2024
SINGAPORE (ICIS)–Click
here to see the latest blog post on Asian
Chemical Connections by John Richardson.
The world as it stands today tells us that US
doing extremely well in the key China HDPE
import market. Using trade data and ICIS price
benchmarks:
In 2023 over 2022, US sales turnover in
soared by $500m as its exports in tonnes to
China also increased. In January-June 2024 over
the same period last year, its turnover was up
by another $106m.
Meanwhile in 2023 over 2022 as their
shipments to China dipped – and because of
lower pricing – Iran’s turnover was down by
$468m, Saudi Arabia by $449m, the UAE by $412m
and South Korea by $176m.
But the January-June 2024 data show the UAE
and South Korea clawing back some ground.
“In H1 2024, US [total] PE exports were 46.5%
of total sales and operating rates above 90% –
a far cry from 21% in 2017 when operating rates
were also much lower in the mid-80% range,”
wrote my colleague Joe Chang in a15 August ICIS
news article.
This suggests that the US, because of its
feedstock advantages, gained sales turnover in
markets other than just China in H1 2024 – and
in the other grades of PE.
The comprehensive nature of ICIS price
benchmark and trade data means that it is
possible to produce charts like the ones in
today’s post for other countries and regions
such as Europe, Latin America, Africa, Turkey
and India.
But this familiar world of trade flows driven
by feedstock costs is rapidly changing.
If the US-China geopolitical split continues,
this raises the question of where China will in
future source most of its chemicals import
volumes.
Demographics will also shape demand, and so
trade flows, in China and elsewhere.
A later blog post will discuss demographic
analysis which suggests that China’s population
in 2020 could have been 130-250m lower than the
1.42bn official number. This would
obviously have major implications for historic
and future chemicals demand in China.
But perhaps China’s cap on refinery capacity
from 2028 onwards, due to the electrification
of vehicles, will limit its capacity growth,
thereby creating a bigger opportunity for
exporters.
Geopolitics, demographics, debts and
sustainability will, I believe, be the new
defining shapers of chemicals and polymers
trade flows. The world as it stands today,
represented by most of the analysis in today’s
post, is coming to an end.
Editor’s note: This blog post is an opinion
piece. The views expressed are those of the
author, and do not necessarily represent those
of ICIS.
Ammonia15-Aug-2024
TORONTO (ICIS)–Chemtrade Logistics hopes that
a freight rail disruption in Canada, should it
occur, will be short, the top executives of the
Toronto-based industrial chemicals producer
said in a webcast earnings call on Thursday.
Meanwhile, the country’s federal labor minister
rejected a call for binding arbitration to
settle the rail labor dispute that has been
looming over Canada’s chemicals and other
industries for months now.
Canada’s two major railroads – Canadian Pacific
Kansas City (CPKC) and Canadian National (CN) –
have said that they may start to lock
out workers on 22 August if no progress is
made on reaching new collective agreements.
Ahead of a potential lockout, the railroads
already started to embargo certain shipments.
While hoping that any rail disruption will be
short, Chemtrade CEO Scott Rook and CFO Rohit
Bhardwaj would not speculate how long a
disruption may last or how long the company
will be able to operate without rail services.
CHLORINE
Chemtrade is beginning to see impacts “even as
of today” as poison inhalation hazards (PIH)
materials are no longer moving on rail, Rook
noted.
The PIH issue, in particular chlorine for use
in drinking water treatment, was being
discussed at the highest level of governments
this week in both Canada and the US, Rook said,
adding that Chemtrade thinks that authorities
will consider chlorine for drinking water as
“essential”.
Chemtrade’s North Vancouver chloralkali plant
plays an important role in ensuring supplies of
liquid chlorine for use in safe drinking water
in both western Canada and the US West, Rook
stressed.
The plant produces more than 40% of all
available liquid chlorine in Canada, and
regionally it produces more than 70% of the
liquid chlorine used to treat drinking water in
Canada’s British Columbia and Alberta
provinces, he said.
A declaration of chlorine as essential,
however, would contradict last week’s ruling by the
Canada Industrial Relations Board (CIRB) that
no essential freight rail activities needed to
be maintained in case of a rail strike or
lockout.
Canada’s chemical and other industries had
urged the tribunal to order that minimum rail
services be maintained during industrial action
to ensure the continued rail delivery of
essential goods such as fuels, food or chlorine
for water-treatment facilities. During the CIRB
process the right to a legal strike or lockout
was suspended.
CUSTOMERS STOCKED UP AHEAD OF
DISRUPTION
The market has been expecting a rail disruption
in Canada for several months and customers
therefore raised their inventories in
anticipation of a disruption, the executives
said.
The volumes customers brought forward
contributed “a meaningful number” to
Chemtrade’s stronger than expected Q2 results,
CFO Bhardwaj said.
The company raised its guidance for 2024
full-year adjusted earnings before interest,
tax, depreciation and amortization (EBITDA) to
Canadian dollar (C$) 430-460 million
(US$314-336 million), from previous guidance of
C$395-435 million.
The new guidance assumes no rail disruption at
its upper point but some disruption at the mid-
and lower points, Bhardwaj said.
Even if there is no strike or lockout, the
looming industrial action is causing
disruptions in supply chains as companies need
to prepare, he added.
Canadian chemical producers rely on rail to
ship more than 70% of their product, with some
exclusively using rail, while in the fertilizer
industry about 75% of all fertilizers produced
and used in Canada is moved by rail.
The following table by the American Association
of Railroads (AAR) shows Canadian freight rail
traffic, including chemicals, for the week
ended 10 August and the first 32 weeks of 2024:
In recent earnings calls, midstream energy
firms Pembina and Keyera, as well as
fertilizer major Nutrien and others
raised the looming rail disruption as a
concern, and railroad CN reduced its 2024
earnings guidance, citing the impact of the
labor uncertainty.
MINISTER DECLINES TO
INTERVENE
Meanwhile, Canada’s Federal Labor Minister
Steven MacKinnon said on Thursday that he will
not accede to a request by CN to intervene and
refer the dispute to the CIRB for binding
arbitration.
“The Government firmly believes in the
collective bargaining process and trusts that
mutually beneficial agreements are within reach
at the bargaining table,” the minister said.
(US$1 = C$1.37)
With additional reporting by Adam
Yanelli
Thumbnail photo source: Chemtrade
Logistics
Ethylene15-Aug-2024
HOUSTON (ICIS)–Prices for ethane, the
predominant US feedstock used to make ethylene,
have fallen this month to levels not seen since
the pandemic, and they will likely remain
depressed until colder weather arrives later in
the year.
Since
falling below 12 cents/gal, ethane prices
have risen by a few cents as some crackers
have restarted.
If another hurricane disrupts US exports of
LNG, ethane prices could decline further with
domestic natural gas prices.
US ethane supplies should continue growing
because of rising oil production.
INEXPENSIVE ETHANE SUPPORTS ELEVATED PE
MARGINSAt the least, low ethane
costs will help US polyethylene (PE) producers
maintain operating rates at profitable levels
regardless of the strength of demand.
US ethylene producers enjoy a cost advantage
because they predominantly rely on ethane as a
feedstock, and its price tends to rise and fall
with that for natural gas. Much of the world
relies on oil-based naphtha, which is usually
more expensive.
From a purely cost perspective, lower ethane
costs allowed for integrated PE margins to
increase in July, and margins may rise again in
August on further reductions in integrated
costs, said Harrison Jacoby, director of PE for
ICIS.
Because of the cost advantage of US producers,
they have been able to maintain exports despite
the global glut of PE.
Recently, PE exports from the US need to make
up 45% of total sales for domestic producers to
maintain operating rates of 90%, as domestic
demand has been essentially flat for many
years, Jacoby said. Inexpensive feedstock
allows them to be competitive in virtually
every market globally, supporting high
operating rates.
ANOTHER HURRICANE COULD LOWER ETHANE
PRICESOne of the reasons why
ethane prices fell so sharply is because
Freeport LNG Development shut down its LNG
operations in Freeport, Texas, because of
Hurricane Beryl.
The site is a key LNG export terminal in the
US, and
the shutdown of its operations back up
natural gas supply, which depressed prices for
domestic natural gas and ethane.
The same scenario could repeat itself if
another hurricane shuts down one of the LNG
terminals on the coasts of Texas or Louisiana.
Hurricane season does not peak until later in
August and September, and meteorologists are
expecting an active year.
If a hurricane shuts down a cracker, that would
reduce ethane demand, further depressing
prices.
WEST TEXAS GAS PRICES HOVER AROUND
ZEROAnother factor depressing
ethane prices is excess natural gas at the Waha
hub in west Texas.
The oil wells in west Texas also produce a lot
of natural gas, and their output can overwhelm
the pipeline capacity to ship it out of the
region. Because of insufficient pipeline
capacity, gas prices at the Waha hub have
frequently fallen below zero.
Ethane is extracted from raw natural gas. If
any ethane remains in the gas stream, it is
sold as fuel. If that happens at Waha, then
producers would be paying a counterparty to
market their supply.
To avoid this, companies have been extracting
as much ethane as possible.
Ethane extraction also frees up space in the
pipelines in west Texas, allowing them to take
away more natural gas out of the region.
ETHANE PRICES MAY RISE LATER IN THE
YEARWaha prices will likely
continue to hover around zero until the new
Matterhorn Express pipeline
starts up later this year.
The Matterhorn pipeline will allow more natural
gas to be shipped out of west Texas. This will
allow gas prices at Waha to climb, which boosts
ethane’s value to fuel in the region, a factor
that could raise prices.
As the year progresses, colder temperatures
should increase demand for natural gas. That
should raise gas prices, which would also push
ethane prices higher.
The ICIS forecast for ethane reflects this. It
shows ethane prices rising as the year
progresses.
NEW PIPELINE TO TAKE AWAY MORE GAS FROM
PERMIANThe midstream industry is
already planning another pipeline to take away
additional natural gas out of the west Texas.
Targa, WhiteWater, MPLX and Enbridge have made
a final investment decision (FID) to build the
Blackcomb Pipeline, which will ship up to 2.5
billion cubic feet/day of natural gas from the
Permian Basin in west Texas to the Agua Dulce
area in south Texas. Operations should start in
the second half of 2026.
NEW MIDSTREAM PROJECTS TO RAISE ETHANE
SUPPLIESThe new Blackcomb
pipeline is the latest new project announced by
midstream companies.
They are continuing to build new natural gas
processing plants. These plants remove
impurities and natural gas liquids (NGLs) from
raw natural gas.
The processed gas is then ready to be burned as
fuel or exported as LNG.
The NGLs are sent to fractionators, which
separate the individual components into purity
products like ethane and propane.
The following table shows fractionators that
were started up or that are being developed.
Company
Project
Type
Capacity
Units
Location
Startup
Energy Transfer
Frac IX
Fractionator
165,000
bbl/day
Mont Belvieu
Q4 26
Enterprise
Fractionator 14
Fractionator
195,000
bbl/day
Mont Belvieu
H2 2025
Gulf Coast Fractionators JV *
GCF Fractionator
Fractionator
135,000
bbl/day
Mont Belvieu
Q3 24
ONEOK
MB-6 Fractionator
Fractionator
125,000
bbl/day
Mont Belvieu
year end 24
Targa
Train 9 Fractionator
Fractionator
120,000
bbl/day
Mont Belvieu
in service
Targa
Train 10 Fractionator
Fractionator
120,000
bbl/day
Mont Belvieu
Q1 25
Targa
Train 11 Fractionator
Fractionator
150,000
bbl/day
Mont Belvieu
Q3 26
* GCF is restarting after being idled in
January 2021. The JV is made up of Targa,
Phillips 66 and Devon Energy
Source: corporate announcements
The following table shows natural gas
processing plants that were started up or that
are being development.
Company
Project
Type
Capacity
Units
Location
Startup
Delek
not available
Gas Plant
110
million cubic feet/day
Delaware
H1 2025
Durango Midstream
Kings Landing, Phase I
Gas Plant
200
million cubic feet/day
Eddy County, NM
Q4 24
Durango Midstream
Kings Landing, Phase II
Gas Plant
200
million cubic feet/day
Eddy County, NM
not available
Energy Transfer
Badger
Gas Plant
200
million cubic feet/day
Delaware
mid 25
Energy Transfer
Permian processing expansions*
Gas Plant
200
million cubic feet/day
Permian
Q4 24 to Q1 25
Enterprise
Orion
Gas Plant
300
million cubic feet/day
Midland
H2 25
Enterprise
Mentone West
Gas Plant
300
million cubic feet/day
Delaware
H2 25
Enterprise
Mentone West 2
Gas Plant
300
million cubic feet/day
Delaware
H1 26
Enterprise
Mentone 3
Gas Plant
300
million cubic feet/day
Delaware
in service
Enterprise
Leonidas
Gas Plant
300
million cubic feet/day
Midland
In service
MPLX
Preakness II
Gas Plant
200
million cubic feet/day
Delaware
in service
MPLX
Secretariat
Gas Plant
200
million cubic feet/day
Delaware
H2 25
MPLX
Harmon Creek II
Gas Plant
200
million cubic feet/day
Marcellus
in service
Targa
Greenwood
Gas Plant
275
million cubic feet/day
Midland
Q4 23
Targa
Greenwood II
Gas Plant
275
million cubic feet/day
Midland
Q4 24
Targa
Wildcat II
Gas Plant
275
million cubic feet/day
Delaware
Q2 24
Targa
Roadrunner II
Gas Plant
230
million cubic feet/day
Delaware
in service
Targa
Bull Moose
Gas Plant
275
million cubic feet/day
Delaware
Q2 25
Targa
Pembrook II
Gas Plant
275
million cubic feet/day
Midland
Q4 25
Targa
Bull Moose II
Gas Plant
275
million cubic feet/day
Delaware
Q1 26
Targa
East Pembrook
Gas Plant
275
million cubic feet/day
Midland
Q3 26
* GCF is restarting after being idled in
January 2021. The JV is made up of Targa,
Phillips 66 and Devon Energy
Source: corporate announcements
Insight article by Al
Greenwood
Thumbnail shows PE pellets, which are made
with ethylene. Image by ICIS
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