Indorama adds US MEG capacity

Author: Antoinette Smith


HOUSTON (ICIS)--Indorama Ventures has added 60,000 tonnes/year of US monoethylene glycol (MEG) capacity by debottlenecking, the company said in its Q2 earnings release.

The expanded capacity "will be fully realised" from Q4 onward, the company said.

It was not clear whether the added capacity was at the Clear Lake or Port Neches plant, both in Texas.

The company did not immediately respond to comment.

Indorama completed its acquisition of the Port Neches site from Huntsman in January.

US MEG is experiencing supply constraints due to both planned maintenance and unplanned shutdowns globally, leading US spot prices to rise in recent weeks.

MEG is an intermediate in the production of polyester fibres and polyethylene terephthalate (PET) bottle resins, and as an automotive antifreeze.

Major glycol producers in the US include Eastman Chemical, Indorama Ventures, Lotte Chemical, LyondellBasell, MEGlobal, Nan Ya Plastics, Sasol and Shell Chemical.

Thumbnail image shows a PET bottle, which is made with MEG. Photo by Photoalto/REX/Shutterstock

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