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Eastman Downgrades U.S. Base Ethylene Production
- Aug 13, 2018 -

Eastman Chemicals CEO Mark Costa said recently that the company is taking steps to reduce ethylene production at Longview, Texas, production base, is expected to gradually show results this year and next year.

Eastman Chemicals, he said, is blending the raw material components of the cracking unit to reduce ethane feeding and maximize propane feeding to reduce ethylene production while maximizing propylene production. In 2019, Eastman Chemical will invest moderately to improve the flexibility of the cracking unit, aiming to increase the production of polymer grade propylene. Although this would significantly reduce ethylene production and increase propane purchases, it would minimize the company's loss from the low spot ethylene price. As the ethylene market improves and prices become more attractive, the company readjusts the process to produce more ethylene.