MEGlobal plant on stream in 2019

By Joseph James Whitworth

- Last updated on GMT

MEG is used in applications including polyethylene terephthalate (PET) bottles
MEG is used in applications including polyethylene terephthalate (PET) bottles

Related tags Ethylene glycol Polyethylene terephthalate Dow chemical company

MEGlobal is to construct a monoethylene glycol (MEG) production facility at Dow’s Oyster Creek site in Freeport, Texas.

The subsidiary of EQUATE Petrochemical Company said the plant is its first manufacturing unit in the US.

It will create 1,400 construction jobs at the project’s peak and the company will employ 50 workers when it goes on stream in mid-2019. No details were given on capacity.

EQUATE Petrochemical Company is a joint venture between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC).

MEG is used in a number of market applications, including polyester fibers, polyethylene terephthalate (PET) bottles and packaging, paints and resins.

Supply consistency

“The Oyster Creek site provides MEGlobal with greater flexibility to satisfy our customers’ needs for consistent and reliable delivery of ethylene glycol products, especially in the growing US and Asian markets,” ​said Ramesh Ramachandran, president, MEGlobal International FZE.

The site will benefit through a long-term ethylene supply agreement with Dow from its ethylene cracker, which is more than 40% complete and will start-up in Q2 2017.

Mohammad Husain, president and CEO of EQUATE Petrochemical Company, said establishing MEG production in the US Gulf Coast is an important investment as part of its growth strategy as an ethylene glycol producer and supplier.

“Additionally, ethylene producer economics through a long-term supply agreement with Dow provide a unique competitiveness for the production plant.”

Feedstock investments

Dow’s ethylene cracker is part of the existing infrastructure that it said made the Texas operations attractive for putting the MEG plant on the US Gulf Coast.

Dow will also complete ethane feedstock flexibility for an ethylene cracker at the Louisiana site, on track for start-up in Q2 2016.

These projects complement existing milestones including the restart of an ethylene cracker at the St. Charles operations in 2012 and the world-scale propane dehydrogenation unit (PDH) that began commercial operations in December 2015.

“This announcement is in line with Dow’s strategy to integrate with cost-advantaged production that will ultimately enable growth in attractive markets across North and South America​,” said Brian Ames, Dow’s SVP of portfolio development for Feedstocks and Performance Plastics.

“With decades of operability in mind, Dow continues to track aggressive timelines and harness our first-mover advantage in the region, resulting in positive economic benefits even in a low-oil environment.”

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