US Polyethylene Production Expected to Exceed 25,000 KTPA by 2030
Today, the U.S. produces about 6 million tons more of plastic resin polyethylene (PE) per year than it did five years ago. Yet, there is still room to grow 2020’s volume of 21,500 Kilo-Tons per Annum (KTPA), judging by resin producers’ expansion plans. By 2030, U.S. PE production is expected to exceed 25,000 KTPA.
The increasing importance of PE exports is undeniable. Five years ago, exported PE represented about one-third of domestic production; today it accounts for half.
Innovations in shale hydrocarbon extraction and the resulting low price of natural gas (a key PE feedstock) have placed the U.S. at a global advantage. Nevertheless, the sheer volume of resins growth has put pressure on the transportation system. Railroads, ports, shipping lines, and packaging facilities in the U.S. Gulf and Lower Atlantic ramped up capacity to handle the growth of plastics resins. The ongoing performance of this supply chain will be crucial to the ongoing American chemical renaissance.
For more on the trends that are continuously reshaping the supply chain, click here.