Ethylene oxide: Feedstocks
Why cheap ethane gives the Gulf and US the edge
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.EO is made from ethylene (from natural gas liquids or naphtha) and oxygen from air. Ethylene is over three-quarters of cost, so Gulf and US ethane-based producers lead, and EO plants sit inside cracker complexes.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Gas Natural gas | about 0.75 t ethylene per t EO (indicative) | main feed in US, Middle East | about 75-85% of cash cost (indicative) | indicative |
| Oil Crude oil | about 0.75 t ethylene per t EO (indicative) | main feed in Asia, Europe, India | about 75-85% (indicative) | indicative |
| Oxygen | about 0.7 t per t EO (indicative) | oxidant from an air separation unit | about 5% (indicative) | indicative |
| Ag Silver | catalyst charges hold tens of tonnes of silver per plant, mostly recycled (indicative) | catalyst | about 1-2% (indicative) | indicative |
Who is low-cost, and why
Saudi and US ethane-based EO is lowest cost; Chinese producers using imported ethylene have the highest cost, with margins at about -$12/t in October 2025 (Argus).
Raw materials on the commodity table
Oil Crude oilGas Natural gasWhat it is made into
| Product | Note |
|---|---|
| MEG Monoethylene glycol | about 70% of EO (indicative) |
| Srf Surfactants | ethoxylates |
| Amn Specialty amines and ethanolamines | ethanolamines and ethyleneamines |
| PU Polyurethanes (MDI, TDI, polyols) | EO-capped polyols |