European Overview of Steam Crackers and Solvent‑related Upstreams



What are steam crackers?

Steam crackers are industrial furnaces that heat hydrocarbons at 800–900 °C in the presence of steam to break larger molecules into smaller olefins. Ethylene and propylene are the main products. Feedstocks can range from light gases (ethane, propane or LPG) to heavier liquids (naphtha or gas condensate) . The choice of feed strongly influences the product slate: light feeds yield more ethylene and propylene, whereas heavier feeds such as naphtha produce a wider distribution of by‑products, including pyrolysis gasoline (pygas) containing aromatic compounds (benzene, toluene, xylenes) . Pygas is an important raw material for extracting benzene, toluene and xylene (BTX) solvents . The olefins generated in a cracker feed a network of downstream units to make polymers and solvents such as ethylene oxide (hydrated to mono‑ethylene glycol), propylene oxide (for propylene glycol and solvents such as PM acetate), and butadiene (for rubber and solvent products).

European cracker landscape

The EU is home to ~50 steam crackers, mostly built in the 1970–1990s and designed around naphtha feedstock. Because naphtha produces BTX and other co‑products, the crackers underpin European production of aromatic solvents. A 2021 capacity survey by Petrochemicals Europe lists the crackers by country and operator . The table below summarises major assets (capacity = ethylene capacity in kt yr⁻¹) and notes the few units that operate on ethane. Europe’s average cracker is <700 kt yr⁻¹; the largest (INEOS Köln, 1 155 kt) is small compared with new global mega‑crackers.

Note: capacities are approximate ethylene capacities reported by Petrochemicals Europe for 2021 and exclude subsequent closures.

Observations

1. Feedstock bias towards naphtha – Most European crackers are designed to crack naphtha; the few exceptions are INEOS’s Rafnes and Grangemouth crackers, which use imported ethane from U.S. shale . Naphtha cracking produces a wide range of by‑products, including pyrolysis gasoline containing aromatic solvents , whereas ethane‑fed crackers yield mainly ethylene and produce little or no BTX.
2. Smaller capacities – The largest European cracker (INEOS Köln) produces about 1.15 million t yr⁻¹ of ethylene, and most plants are in the 400–700 kt yr⁻¹ range . New mega‑crackers outside Europe dwarf these units (see below).
3. Closures under way – Several crackers have already closed or have closure announcements. Sabic’s cracker at Wilton, UK closed in 2020, Sabic closed one of its two Geleen, Netherlands crackers in 2024, ExxonMobil shut its Notre‑Dame‑de‑Gravenchon cracker in Q4 2024, Versalis shut its Porto Marghera cracker in 2022 and will shut Brindisi and Priolo by end‑2025, and Dow plans to close its Böhlen cracker by 2027  . TotalEnergies will shut its 550 kt Antwerp unit by 2027, leaving a single cracker at the site .

European closures and rationalisation

European petrochemical producers are under severe pressure from high energy costs and over‑capacity. A Reuters report notes that the EU’s crackers are over 40 years old on average, operate with utilisation rates below 80 % and face higher ethylene production costs (~$800 t⁻¹ when using naphtha) than U.S. or Middle‑Eastern ethane‑fed plants . Up to 40 % of the EU’s 24.5 Mt of ethylene capacity is at high or medium risk of closure . The same article emphasises that North America’s ethylene capacity will grow to 58 Mt by 2030, while China is expected to produce 87 Mt by 2030, more than triple Europe’s capacity .

According to industry reports (S&P Global and Reuters):

• Dow Böhlen (Germany) – Dow will shut its 565 kt cracker by 2027 as part of a cost‑reduction programme. Dow also idled one cracker at Terneuzen in 2025  and will close chlor‑alkali and siloxanes units in Germany and the UK .
• Sabic – Sabic permanently closed its Teesside/Wilton (UK) cracker and plans to close one of its two Geleen (Netherlands) crackers .
• Versalis (Eni) – Italy’s state‑owned Versalis will shut crackers at Brindisi (440 kt) and Priolo (530 kt) by end‑2025 and convert the Priolo site to battery and bio‑fuel operations . It closed its Porto Marghera cracker in 2022 .
• TotalEnergies – The company will shutter its oldest cracker in Antwerp (550 kt) by 2027 because a key customer will not renew its contract; it will continue operating its newer 610 kt cracker .
• ExxonMobil – ExxonMobil closed its 425 kt cracker at Notre‑Dame‑de‑Gravenchon (France) in Q4 2024 due to poor profitability .
• Other rationalisation – LyondellBasell is reviewing assets in several countries and may sell or idle crackers; Shell, BASF and BP have announced rationalisation plans. Overall, analysts estimate that about 2 million t yr⁻¹ of ethylene capacity must be permanently removed to restore European utilisation to ~90 % .

New European investment

Despite the wave of closures, INEOS is building Project ONE in Antwerp. The €4 billion project will produce 1.45 Mt yr⁻¹ of ethylene from ethane, and is expected online in 2026 . It will be the first new cracker in Europe in ~30 years and aims to compete with global mega‑crackers by using abundant ethane feed and state‑of‑the‑art technology . However, its arrival partly offsets the reduction in capacity from closures.

Larger steam crackers in the US and Asia

Outside Europe, new crackers are far larger and often rely on ethane. Examples include:

• US Gulf Coast II Petrochemical Project (US) – Chevron Phillips and QatarEnergy plan to build a petrochemical complex on the U.S. Gulf Coast with the world’s largest ethane cracker (expected 2 Mt yr⁻¹ of ethylene) and two high‑density polyethylene units of 1 Mt yr⁻¹ each . The project will draw cheap ethane from the Permian Basin .
• Ras Laffan Complex (Qatar) – The same partners are constructing a complex in Ras Laffan, Qatar, with a 1.9 Mt yr⁻¹ ethane cracker—the largest in the Middle East—and two polyethylene derivative units . The facility will utilise ethane from Qatar’s North Field expansion .
• North America & China expansions – Reuters notes that North America’s ethylene capacity will grow from 54 Mt to 58 Mt by 2030 and China’s capacity will reach 87 Mt by 2030, reflecting heavy investment in large ethane or mixed‑feed crackers .

These mega‑crackers often exceed 2 Mt yr⁻¹ of ethylene capacity—roughly double or triple the size of Europe’s largest naphtha crackers. They enjoy structural advantages: abundant ethane feed (a by‑product of shale gas), lower energy costs and economies of scale. In contrast, most European crackers rely on expensive naphtha and have fixed costs spread over smaller throughputs .

Impact on solvent markets and upstream chemicals

1. Supply of aromatic solvents – Naphtha cracking yields pyrolysis gasoline (10–13 % of feed) containing aromatic compounds . This stream is the primary source of benzene, toluene and xylene (BTX) used as solvents in coatings, adhesives and synthetic fibres . Ethane‑fed crackers (INEOS Rafnes, Grangemouth and the forthcoming Project ONE) produce little or no BTX; thus, closures of naphtha crackers and replacement by ethane‑based units will reduce European production of aromatic solvents. Downstream extraction units may have to rely on imported pygas or reformate from refineries.
2. Olefin‑based solvents and glycols – Ethylene and propylene from crackers feed ethylene oxide and propylene oxide units, which are hydrated to make mono‑ethylene glycol (MEG) and propylene glycol (PG). These glycols are used as solvents, antifreeze and de‑icing fluids. Crackers also supply butadiene (4–5 % of naphtha cracking output ) for making rubber and solvent intermediates. Closure of assets like Dow Böhlen will reduce regional supply of ethylene and chlorine, tightening markets for MEG, PG, propylene glycol ethers (such as PM acetate), and chlorinated solvents; industry commentators warn of supply volatility from 2026–2028 .
3. Shift towards ethane reduces co‑product slate – New ethane crackers (Project ONE, USGC II, Ras Laffan) maximise ethylene yield but produce minimal co‑products. As Europe replaces naphtha capacity with ethane units, the supply of pyrolysis gasoline, propylene and butadiene will diminish. This may force solvent producers to seek alternative feed sources, raise dependence on imports, or invest in aromatics extraction from refinery reformate.

Key takeaways

• Crackers are the backbone of solvent supply. They convert hydrocarbons into olefins and co‑products; naphtha‑based crackers generate ethylene, propylene, butadiene and aromatic pygas used to manufacture solvents and plastics . Ethane‑fed crackers produce mainly ethylene and fewer solvent feedstocks.
• Europe’s cracker fleet is ageing and naphtha‑heavy. Most assets are <700 kt yr⁻¹ and built around naphtha feed . Two crackers (Rafnes and Grangemouth) already import U.S. shale ethane, and Project ONE will be Europe’s first new ethane‑cracker in decades .
• Closures are reshaping supply. Multiple crackers have closed (Wilton, Notre‑Dame‑de‑Gravenchon, Porto Marghera) or announced closure (Brindisi, Priolo, Böhlen, Antwerp old unit) . Analysts expect ~2 Mt yr⁻¹ of European ethylene capacity to be rationalised .
• New mega‑crackers outside Europe dwarf EU plants. Upcoming ethane crackers in the U.S. and Qatar will produce 1.9–2 Mt yr⁻¹ of ethylene  —about twice the size of Europe’s largest unit—and benefit from cheaper ethane feed. .
• Implications for solvent markets. The shift from naphtha to ethane reduces production of pyrolysis gasoline and propylene, tightening supplies of BTX aromatics, glycols, chlorinated solvents and related intermediates. European solvent producers may face greater import dependence and price volatility.