# Ethylene oxide: Feedstocks

Why cheap ethane gives the Gulf and US the edge

Source page: https://www.materialinsights.org/chemicals/ethylene_oxide/feedstocks/

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](https://www.materialinsights.org/energy/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](https://www.materialinsights.org/energy/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](https://www.materialinsights.org/commodities/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 oil](https://www.materialinsights.org/energy/crude_oil/)[Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/)

#### What it is made into

| Product | Note |
|---|---|
| [MEG Monoethylene glycol](https://www.materialinsights.org/chemicals/meg/) | about 70% of EO (indicative) |
| [Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/) | ethoxylates |
| [Amn Specialty amines and ethanolamines](https://www.materialinsights.org/chemicals/specialty_amines/) | ethanolamines and ethyleneamines |
| [PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/) | EO-capped polyols |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/ethylene_oxide/index.md)
- [Overview](https://www.materialinsights.org/chemicals/ethylene_oxide/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/ethylene_oxide/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/ethylene_oxide/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/ethylene_oxide/production/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/ethylene_oxide/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/ethylene_oxide/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/ethylene_oxide/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/ethylene_oxide/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/ethylene_oxide/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/ethylene_oxide/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/ethylene_oxide/links/index.md)