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.