The Urethane Blog

EO and MEG Force Majeures

Power outages after hurricane lead to FMs on one third of US MEG capacity

Author: Antoinette Smith

2020/09/01

HOUSTON (ICIS)–Following Hurricane Laura, more than one third of US monoethylene glycol (MEG) production capacity is included in force majeure declarations.

Three producers in southwestern Louisiana and southeastern Texas – Lotte, Indorama and Sasol – declared force majeure as a result of the category 4 storm, which hit the area early morning on 27 August.

These three plants represent 35% of US MEG capacity, according to the ICIS Supply and Demand Database.

Power outages remain in the US as a result of Hurricane Laura, preventing some chemical companies from restarting their plants.

US MEG supply was already tight, ahead of a heavy slate of planned maintenance.

Click here to view the US Gulf storms – impacts on chemicals topic page.

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.

https://www.icis.com/explore/resources/news/2020/09/01/10547851/power-outages-after-hurricane-lead-to-fms-on-one-third-of-us-meg-capacity