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MEGlobal to start shipping commercial lots of MEG from its new plant in Texas to international markets by end-November

October 14/2019

MOSCOW (MRC) -- MEGlobal plans to start shipments of commercial production from its new 750,000-metric ton/year ethylene glycol (EG) unit at Oyster Creek, Texas, to international markets by late November 2019, reported S&P Global.

The plant was inaugurated on 10 September 2019 and was in its final start-up stages and expected to produce on-spec product within 30 days.

The plant, Equates first in the United States, has capacity for 700,000 metric tons/year of monoethylene glycol (MEG) and 50,000 metric tons/year of diethylene glycol (DEG). Total investment was USD2 billion, including a capital contribution to Dow that secured ethylene feedstock supply at producer economics.

EG demand continues to grow at more than 5%/year led by polyethylene terephthalate (PET) and polyester fiber, which combined account for roughly 85% of MEG demand.

Equate and MEGlobal also have EG production in Alberta, Canada as well as Kuwait. The global production footprint is an advantage given recent trade tensions. US EG exports to China are challenged by 25% tariffs but MEGlobal can export US production to Latin America and India while Canadian and Kuwait product will target China.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast report, Russia's estimated PET consumption reached 62,540 tonnes in August 2019, up 9% year on year. The estimated consumption of PET in the Russian market increased in January-August 2019 to 493,240 tonnes, up by 12% year on year.

MEGlobal is a world leader in the manufacture and marketing of merchant monoethylene glycol and diethylene glycol (EG). Established in July 2004, the company is a joint venture between The Dow Chemical Company and Petrochemical Industries Company of Kuwait and is headquartered in Dubai, United Arab Emirates. With approximately 200 employees worldwide, MEGlobal serves customers around the world, and has production facilities in Fort Saskatchewan and Prentiss, Alberta, Canada.


mrcplast.com
Author:Margaret Volkova
Tags:monoethylene glycol (MEG), PET-granulate, ethylene, packaging, Dow, MEGlobal, Russia, USA.
Category:General News
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