Ethane Cracking: Dow to Ramp Up Capabilities in U.S. Gulf

Dow Chemical said on Thursday it plans to increase its ethane cracking capabilities on the U.S. Gulf Coast over the next two to three years, improving its capabilities by 20% to 30% in that time frame.

Dow also said it is reviewing joint venture options to build a natural gas liquids fractionator to secure this supply of ethane. Cracking is one step needed in turning ethane, into ethylene.

Ethane is a component of natural gas, and ethylene is used in the manufacture of plastics and other products.

Both actions are intended to capitalize on the current favorable supply dynamics in North America, the Midland Mich., company, said.