IHS Chemical Week

Chemical Week Magazine :: Business & Finance :: United States/Americas

Outages will push EO-EG operating rates into the red, drive up prices

3:05 PM MDT | April 7, 2014 | —Clay Boswell in Houston

Recent additions to ethylene glycol (EG) capacity may have kept the world market in rough balance, but serious production issues have limited actual availability, according to Tison Keel, director/ethylene oxide and derivatives at IHS Chemical. The result will be unsustainably high operating rates, tight supply, and high prices, he says. Keel made his comments at the 2014 IHS World Petrochemical Conference, held recently in Houston, TX. Five world-scale EG plants in Saudi Arabia, believed to be operating at reduced rates, will shut down to have their reactors...

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