Ethylene: Feedstocks
Why US and Gulf ethane beat Asian naphtha
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Ethylene is made from ethane (gas liquids), naphtha (a refinery cut of crude oil), LPG, or coal via methanol. Feedstock is 60-80% of cash cost, so the region with the cheapest feed wins: US and Gulf ethane beat naphtha by $100-150/t in 2025 at crude near $60/bbl (ChemOrbis), and Chinese coal routes compete on cheap coal.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Gas Natural gas | about 1.25 t ethane per t ethylene (indicative) | cracker feed in US, Middle East, part of India (GAIL Pata, OPaL, Reliance ROGC) | about 60-70% of cash cost (indicative) | indicative; ChemOrbis Dec 2025 for ethane discount |
| Oil Crude oil | about 3.3 t naphtha per t ethylene, with co-products (indicative) | cracker feed in Europe, Japan, Korea, much of China and India | about 70-80% of cash cost before co-product credits (indicative) | indicative |
| Tc Thermal coal | about 3 t methanol per t light olefins; methanol needs about 1.5-2 t coal per t (indicative) | CTO/MTO in China | not published | indicative (IEA 2018) |
| Fuel and power | more than 30 GJ per t ethylene | furnace heat (mostly from cracker off-gas) and compression | about 10-15% (indicative) | Chemistry World 2024 |
Who is low-cost, and why
US Gulf and Middle East ethane crackers are lowest cost; US integrated ethane-to-PE margins averaged about $580/t in early 2026, versus a historic $830/t (Argus 2026). Chinese coal and new integrated refinery crackers sit mid-curve. Naphtha crackers in Europe, Japan, Korea and Southeast Asia are highest cost and are the ones closing.
Raw materials on the commodity table
Oil Crude oilGas Natural gasWhat it is made into
| Product | Note |
|---|---|
| LLDPE Polyethylene (LDPE, LLDPE) | with HDPE takes about 65% of ethylene |
| HDPE High-density polyethylene | part of the 65% PE share |
| EO Ethylene oxide | about 15% of ethylene (indicative) |
| MEG Monoethylene glycol | via ethylene oxide |
| VCM Vinyl chloride monomer | about 10% via EDC (indicative) |
| SM Styrene | via ethylbenzene |
| EPDM EPDM | small share |
| bPE Bio-based polyethylene and MEG | made from bio-ethylene |