Study: Appalachia ethane ‘crackers’ hold cost advantage over ones on Gulf Coast

A new study from IHS Markit and Shale Crescent USA “is pressing the case that building more ethane “crackers” in the [Appalachia) region is cheaper for the industry than a similar new facility on the Gulf Coast,” reports the Pittsburgh Business Times. The newspaper says the study finds the pre-tax cash flow of an Appalachian ethane cracker over its 20-year life span would be $11.5 billion, compared with $7.9 billion on the Gulf Coast for a “world-scale cracker” that would have about 1 million metric tons of annual output. The study says the reason for the difference is that the cost of ethane and transporting it to and from a processing plant provides a significant advantage to crackers in Appalachia. For more, read the full story.

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