Industry News

MEGlobal to Build USD1 billion Ethylene Glycol Plant in Texas

United States: MEGlobal, a Dubai-based manufacturer and supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), has chosen Dow Chemical’s, a US-based specialty chemical manufacturer, site in Texas for its new world-scale ethylene glycol (EG) facility, which it is planning to bring online in mid-2019. The plant would be receiving ethylene from Dow’s new Freeport ethane cracker under a long-term supply agreement. The Freeport plant is in the process of construction and will be on track to begin operating in the second quarter of 2017. Until 2015, MEGlobal was a 50-50 joint venture between Dow and Equate Petrochemical but its had sold its ownership interest to Equate for USD1.5 billion as part of an effort to optimize its participation in Kuwaiti joint ventures.

TechSci Research depicts that new facility in united states will work towards increasing the market penetration of MEGlobal, and company will experience greater flexibility to satisfy the customers’ needs for dependable and consistent delivery of ethylene glycol products, particularly in the mounting US and Asian markets. Hence with the above business move, market for PET will exhibit strong growth due to better availability of one of its major raw material, i.e. ethylene glycol, globally.

According to the recent report published by TechSci Research, India PET & PBT Resins Market Forecast & Opportunities, 2020”, the PET & PBT resins market in India is expected to surpass USD1.9 billion in 2015. PET is predominantly used for packaging of bottled drinking water, carbonated soft drinks, edible oils, juices, alcoholic beverages, etc., while PBT is majorly used in electrical and electronics industry. With the increasing government focus on domestic manufacturing with “Make in India” tag the demand for PET and PBT resins is further expected to increase in India.

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