The largest outlet for ethylene oxide (EO) is ethylene glycol (EG), which accounts for three-quarters of EO consumption globally. Other derivatives include ethoxylates, ethanolamines, glycol ethers and polyethylene glycols.
Monoethylene glycol (MEG) is the primary glycol which is used mainly to make polyester followed by automotive antifreeze. MEG demand is expected to grow at 5-6%/year globally. This is partly driven by the strong demand for polyester fibre in Asia where it is used in the production of textiles. However, this has been at the expense of the developed markets of western Europe and North America where polyester fibre demand is stagnant. 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 second largest market for MEG is antifreeze formulations. This market is in a slight decline due to antifreeze recycling, long-life coolants and substitution by propylene-glycol based antifreeze.
In the production of MEG, diethylene glycol (DEG) and triethylene glycol (TEG) are also produced. DEG is used in the manufacture of polyurethanes, where it is employed as a component in polyester polyols, and in unsaturated polyesters. TEG’s main use is in natural gas dehydration with other applications in solvents, polyurethanes and plasticisers.
The percentage of domestic ethylene oxide consumed in ethylene glycols varies widely amongst regions. According to SRI Consulting, this varies from 44% in western Europe, 63% in Japan and 73% in North America to 90% in the rest of Asia and 99% in the Middle East and Africa.
The second largest outlet for EO, at 9% of total consumption, is in surface active agents, primarily non-ionic alkylphenol ethoxylates (APEs) and detergent alcohol ethoxylates (AEs). APEs are used as non-ionic surfactants or as intermediates for the production of anionic alcohol ether sulphates/phosphates for home laundry and dishwashing formulations.
AEs are biodegradable products used in hard surface cleaning products. They are expected to see good demand growth, partly due to declining demand for nonyl-phenol ethoxylates, which are suffering from environmental and safety concerns.
A general trend from end-product manufacturers is to reformulate or blend surfactants to optimise performance and price of the finished products. This trend has tended to reduce the volume of surfactants used in end-products.
Global ethyoxylation capacity is reported to be tight. However, the large investment required, based on a hazardous process using EO, is a barrier for some manufacturers.
As a percentage of domestic EO consumption, consumption by surface active agents also varies widely among regions – North America (9%), western Europe (25%), Japan (22%) and rest of world (4%), according to SRI.
Other EO derivatives include glycol ethers (used in solvents and fuels), ethanolamines (used in surfactants, personal care products, etc), polyols for polyurethane systems, polyethylene glycols (used in toothpaste, medicines, etc) and polyalkylene glycols (used in antifoam agents, hydraulic lubricants, etc).
Overall, EO demand is expected to grow at around 5%/year globally. World consumption of EO in 2007 was 19.9m tonnes, according to UK consultant PCI Xylenes & Polyesters.
While capacity in 2007 was tight, there is concern that the planned increases in capacity will outpace demand growth in the 2008-2011 period, leading to some overcapacity. PCI estimates that 13-14 new EO/EG plants will come on-stream in this period including four in Saudi Arabia, another two in the Middle East, five in China, and two or three in India.
In the European Union (EU), consumption of EO was around 2.95m tonnes in 2007, up by 5% on 2006, says PCI. Production rates were close to the highest seen historically for Western Europe.
Ethylene oxide demand for derivatives such as ethanolamines, ethoxylates and other alkoxylates was particularly strong. MEG production also increased in 2007 as strong Asian prices allowed European MEG producers to make more for local consumption and exports in 2007. However, MEG demand in the EU was flat for fibres and only rose slightly for PET.
Ethylene oxide production in the EU is expected to decline in the future. While EU demand for MEG will grow by 2.6%/year in 2008-2012, says PCI, MEG production will decline as the global overcapacity will cause MEG prices to fall below economic levels in Europe. As a result, European producers are expected to cut EO production for MEG and move to pure EO and other derivatives.
Demand growth in the US is expected to be much lower than the global average at 2.5%/year through to 2010. According to ICB, US demand will grow from 3.84m tonnes in 2006 to 4.24m tonnes in 2010.
Imports and exports of EO are negligible as it is not widely traded due to its explosive nature. However, as considerable new EG capacity comes on stream in China and the Middle East, the implication is that EG imports into the US will increase, reducing domestic demand for EO.
Updated: June 2008. Sources: ICB Chemical Profiles, 23 June 2008 and 11 June 2007; ICB 27 November 2006.
Ethylene Oxide
Process Technologies
Ethylene oxide (EO) was initially manufactured using ethylene chlorohydrin as an intermediate, but this route has been superseded by the direct oxidation of ethylene with air or oxygen. Now, nearly all the world's EO capacity is based on direct oxidation, with oxygen generally preferred over the air route in larger plants due to higher yields and less downtime.
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