Hanwha Chemical hopes to build U.S. ethylene plantHanwha Chemical said yesterday it is seeking to build an ethylene plant in the United States in collaboration with an American shale gas company.
“We are in talks with a U.S. shale gas company, but negotiations have yet to take shape,” an official at Hanwha Chemical said on condition of anonymity.
The project is aimed at reducing production costs of ethylene used to manufacture petrochemicals, he said. The cost of ethylene production could be halved by extracting it from shale gas compared with the existing extraction method using naphtha.
Helped by lower costs of ethylene production, United States petrochemical companies are expanding their presence in the Chinese market, the official said.