Asian ethylene glycol supply may tighten in 2012

It is reported that due to the limited new production capacity and overhaul of equipment, the supply of ethylene glycol in Asia will tend to be tight in 2012. In 2012, only one MEG device will be put into operation in Asia. Ningbo Haoyuan Chemical Co., Ltd. invested 5.8 billion yuan ($922 million) to build a new 500,000 tons/year MEG unit in Ningbo, Zhejiang Province, and it is expected to start production in October.

In addition, there are some devices that will be shut down. Taiwan's South Asia Plastics Corporation plans to carry out scheduled maintenance work on the 720,000 tonne/year MEG No. 4 device in McCain in March. South Korea’s Hunan Petrochemical, China’s Yamba Petrochemical, India Trust Industry and Kuwait’s Equate have also planned to conduct 10-40 days of overhaul of MEG installations during the March-May period. The planned shutdown of these devices will affect 13% of the total MEG capacity in Asia, or 2.4 million tons/year. However, in the second half of 2012, the number of overhauled MEG installations in Asia will be greatly reduced. Until now, only Sinopec, which is part of Sinopec, will conduct a 40-day work stoppage on a 260,000-ton/year installation. A 360,000-ton/year joint venture facility in Tianjin will undergo a 40-50-day overhaul.