Olefins
Olefins are petrochemical derivatives produced by cracking (processing) feedstocks such as Ethane, Propane, Butane, Naphtha and Gas Oil. The primary Olefins products are Ethylene, Propylene, Butadiene and C4 derivatives. These petrochemical derivatives are used to produce plastics, chemical intermediates and industrial solvents. Ethylene and Propylene are the two most actively traded Olefins in the spot market.
Ethylene (C2=) is a colorless gas and is the most produced organic compound in the world. The typical unit measurement of Ethylene is in pounds and it is distributed via pipelines.
Propylene can be broken into three main categories: Chemical Grade Propylene (CGP), Polymer Grade Propylene (PGP) and Refinery Grade Propylene (RGP). Of the three, RGP is more likely to be traded on the spot market and is also a colorless gas. The typical unit measurement for RGP is in barrels.