Monoethylene glycol (MEG) is the most important of the commercially available ethylene glycols, accounting for about 90% of production. Diethylene glycol (DEG) and triethylene glycol (TEG) are produced as by-products in the manufacture of MEG.
Around 82% of MEG consumed worldwide is used in the production of polyester fibres, resins and films. Strong growth in polyester demand has led to global growth rates of 5-6%/year for MEG.
This is partly driven by the steady demand for polyester fibre in Asia, in particular China, where it is used in the production of textiles. China has grown its polyester fibre demand at the expense of other countries with fibre demand growing at double digit rates in the last few years.
Regions that have particularly suffered are the developed markets of western Europe and North America where polyester fibre demand is stagnant. In addition, countries such as Taiwan and Korea have also been impacted by China.
Fortunately, demand for polyethylene terephthalate (PET) bottle resin has been growing strongly in all regions of the world as it replaces glass used in water, carbonated drinks and food containers. The attraction of PET is that it is strong and lightweight when compared to glass.
PET had been growing up to 10%/year globally but growth has now moderated considerably. Beverages are expected to continue to be the dominant outlet.
The second largest market for MEG is antifreeze formulations, accounting for 12% of demand. This market is in a slight decline due to antifreeze recycling, long-life coolants and substitution by propylene glycol-based antifreeze.
DEG is used in the manufacture of polyurethanes, where it is used as a component in polyester polyols, and in unsaturated polyesters and plasticizers. Other uses for DEG include the dehydration of natural gas and in the treatment of corks, glue, paper and cellophane.
The main applications for TEG employ its hygroscopic properties. Its main use is in the dehydration of natural gas and as a dehumidifier in air conditioning systems. TEG also finds applications as a vinyl plasticizer, an intermediate in the manufacture of polyester resins and polyols, and as a solvent.
Not all MEG producers recover the DEG and TEG and sell them as unspecified polyglycols.
Global demand growth in ethylene glycol (EG) is estimated by UK consultancy PCI at 5.3%/year in the 2007-2015 period. Global production in 2007 was 17.8m tonnes.
Rising demand from polyester fibre and PET resin markets means that one to two world-scale EG plants are needed every year. However, PCI believes that there could be serious oversupply in 2009-2011.
Several new plants are planned in the Middle East and Asia with capacity starting up from 2009, pushing the sector into a surplus that could last three years or more. In addition, changes in technology have led to step changes in capacity increments, leading to a higher probability of a long market for a longer period of time.
As a result, rationalization is expected in regions of high ethylene costs such as Asia, with some further mothballing or closures in the US and Europe.
West European production was around 1.4m tonnes/year in 2007. The region will need to import more EG as domestic ethylene oxide (EO) output will concentrate on other EO derivatives where EO values are usually higher. For example, Dow Chemical stopped EG production at its Terneuzen site in the Netherlands in 2008 so it could free up more EO for other EO derivatives.
In the US market, demand growth for ethylene glycol has been around 2%/year. The strongest segments are PET solid-state resins and polyester fibres, which together have grown at 3%/year. EG consumption in virgin antifreeze is declining slowly as a result of antifreeze recycling and long-life coolants.
With considerable new capacity based on low-cost feedstocks under construction in the Middle East, the US is expected to change from a net exporter to a net importer by 2010. Domestic demand growth will be met by redirected export material and increased imports. Additional capacity rationalisation could also take place along the US Gulf Coast.
China dominates the world market and already accounts for over one-third of global MEG demand. Over the past two decades, China’s MEG demand growth has rocketed with an average growth rate in the period of almost 20%/year.
Forecasts suggest that China’s average growth rate will be around 6.5%/year between 2007 and 2015, according to an EO/EG manager of the global producer Shell. This means that China’s MEG demand will be approaching 12m tonnes/year by 2015, or roughly half the annual global demand. But in current economic climate, the pace of growth may slow, said Shell.
In 2007, polyester fibre accounted for 81% of China’s MEG consumption or 5.6m tonnes. PET resin was the second largest end use at 12% or 815,000 tonnes. Total Chinese consumption was 6.9m tonnes in 2007, according to PCI.
Polyester fibre production is expected to remain the key driver for China’s MEG’s consumption with demand growing at 6.5%/year in the 2007-2015 period. PET resin consumption is expected to grow by slightly less than 6%/year.
Despite the huge growth in China’s MEG consumption, the country is highly reliant on imports with less than one-third produced domestically. While China’s MEG capacity is expected to increase by 1.5m tonnes/year in the next five years, demand is forecast to grow by above 500,000 tonnes/year. Its reliance on imported material is unlikely to decrease, concluded Shell.
Updated: January 2009. Sources: ICB Chemical Profile, 4 August 2008.
Ethylene Glycol, Mono
Process Technologies
Ethylene glycol used to be manufactured by the hydrolysis of ethylene oxide which was produced via ethylene chlorohydrin but this method has been superseded by a direct oxidation route. The EO is first produced by the oxidation of ethylene in the presence of oxygen or air and a silver oxide catalyst. A crude ethylene glycol mixture is then produced by the hydrolysis of EO with water under pressure. Fractional distillation under vacuum is used to separate the monoethylene glycol from the higher glycols.
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