How is ethane cracking reshaping China's ethylene production cost competitiveness?

How is ethane cracking reshaping China's ethylene production cost competitiveness?
Ethane steam cracking is the most cost-efficient route to ethylene globally, and China is actively catching up. North American producers leveraging cheap ethane enjoy cash costs roughly 60% of Asia-Pacific naphtha cracking, according to IHS Markit data referenced in industry analyses. Ethane cracking delivers single-pass ethylene yields of 65%-75% versus 30%-35% for naphtha, with far fewer byproducts like propylene, butadiene, and aromatics, which cuts downstream separation energy and capital expenditure. Carbon intensity is also lower—about 0.8 tonnes CO2 per tonne ethylene versus 1.5 tonnes for naphtha. Chinese projects are advancing, with domestic suppliers like Heze Xileng Chemical producing ethane at 99%+ purity with sulfur below 1 ppm to protect cracker furnace tubes from carburization and extend decoking intervals. This positions ethane as a strategic feedstock for China's ethylene self-sufficiency push.