AFPM '12: MEG supply to tighten in Q2 amid maintenance

03 April 2012 00:15  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--US monoethylene glycol (MEG) supply will tighten in the second quarter as producers take production off line for maintenance, market participants said on Monday.

The shutdown of MEGlobal’s plants in Canada, paired with the planned maintenance at Huntsman’s Port Neches plant in May, will tighten supply during the second quarter, market players said on the sidelines of the International Petrochemical Conference (IPC).

MEGlobal plans to shut its three MEG plants in Alberta in Canada for six weeks of maintenance in the second quarter. The work is expected to begin at the end of April.

MEGlobal has two plants at Prentiss, with nameplate capacities of 320,000 tonnes/year and 278,000 tonnes/year; and a third plant at Fort Saskatchewan with a 380,000 tonne/year capacity, according to the company’s website.

MEGlobal plans to replace the reactors of the biggest plant in Fort Saskatchewan that will slightly increase its glycol production.

Market participants said Huntsman was starting maintenance at the Port Neches site in Texas in May. It is unknown how long the work will last.

All of the ethylene produced at Huntsman’s site is used internally for ethylene oxide (EO), and substantially all of the propylene is consumed by the propylene oxide (PO) unit at Port Neches operated by Huntsman’s polyurethanes business. EO is a feedstock for ethylene glycol (EG)..

A Huntsman representative could not be reached by telephone for comment.

Major EG producers in the US include LyondellBasell, Huntsman, MEGlobal, Old World, SABIC and Shell.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.

By: Leela Landress
+1 713 525 2653

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