Asia’s monoethylene glycol (MEG) will come up in the year 2020 will face a difficult year due to peak start-ups of several new mega units while China’s import volumes would fall because of rising local supply.
A total of 3.3m tonnes/year of confirmed new MEG capacities in Asia are expected to start up from end-2019 to 2020, which will weigh on a market already plagued by poor margins
Hengli Petrochemical’s in China to start 900,000 tonne/year and Zhejiang Petrochemical’s 750,000 tonne/year plants are due to begin production in the second-half December 2019. The commercial production will start in next year.
Hengli Petrochemical’s second MEG unit with the same capacity is also due for commissioning within 2020.
In southeast Asia, the start-up of a 750,000 tonne/year joint-venture unit between PETRONAS and Saudi Aramco will likely be delayed to 2020 due to some mechanical issue.
