Shell's EO/MEG turnaround coincides with low December demand

10 December 2009 17:16  [Source: ICIS news]

LONDON (ICIS news)--The European ethylene oxide (EO) market was unlikely to be affected by Shell’s imminent maintenance turnaround at its EO/mono ethylene glycol (MEG) facility at Moerdijk in the Netherlands due to lower demand requirements in December, according to players on Thursday.

The facility was scheduled to go offline on 11 December and was expected to be down for approximately one week, a company source said.

The outage was thought to have been postponed from October due to a good level of EO demand at that time, players said recently.

Soaring spot prices in Asia were attracting MEG imports from the Americas and the Middle East, leaving the European arena with less availability and therefore heightened demand and higher prices. An initial December MEG contract price was agreed at €660/tonne FD (free delivered) NWE (northwest Europe), an increase of €28/tonne from November.

Shell’s Moerdijk site has a nameplate capacity of 305,000 tonnes/year for EO and 160,000 tonnes/year for MEG, according to ICIS plants and projects database.

Additional reporting by Caroline Howard
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By: Heidi Finch
+44 20 8652 3214



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