The U.S.’s Energy Information Administration (EIA) expects ethane production to remain resilient and growing through 2021, Kallanish Energy reports.

Estimates in the EIA’s Short-Term Energy Outlook (STEO) show ethane output will increase 7.65% year-on-year in 2020 to average 1.97 million barrels per day (Mmbpd).

Production should average 2.20 Mmbpd in 2021, representing an annual growth of 11.67%. In 2019, the U.S. produced 1.83 Mmbpd of ethane.

The boost in production is expected to satisfy growing demand, including from three new U.S. petrochemical plants started up in the first half of the year. Ethane is used as a feedstock.

The EIA forecasts ethane production will reach 2.11 Mmbpd in the fourth quarter of 2020, which is 9.32% higher than in the first-quarter of the year. By 4Q21, production levels are estimated at 2.27 Mmbpd, which is 17.6% higher than 1Q20.

The STEO also pointed to higher hydrogen gas liquids consumption in 2020 and 2021, due to stronger assumed petrochemical industry growth and higher-than-anticipated ethane consumption data for May.

U.S. ethane/ethylene consumption should rise 9.8% y-o-y in 2020 to average 1.68 Mmbp/d, and 9.3% y-o-y in 2021 to average 1.82/Mmbpd.

This post appeared first on Kallanish Energy News.