Chemical Industry News, Data & Insights

Dow Expands Ethylene Supply Agreement with MEGlobal

Key highlights
  • Dow to supply an additional 100 KTA of ethylene to MEGlobal from Gulf Coast operations.
  • Ethylene will be used at MEGlobal's EG manufacturing facility at Oyster Creek.
  • Dow holds a 42.5% stake in EQUATE, MEGlobal's parent company.
  • EG applications include polyester fibers, PET bottles, antifreeze, and construction materials.

Agreement Details

Dow and MEGlobal have finalized an agreement for Dow to supply an additional 100 KTA of ethylene from its Gulf Coast operations. This ethylene will be a key feedstock for MEGlobal’s ethylene glycol (EG) manufacturing facility at the Oyster Creek site.

Strategic Benefits

Dow's low conversion costs and feedstock flexibility leverage cost-advantaged U.S. shale gas, enhancing value for shareholders and partners. MEGlobal's Oyster Creek site offers flexibility for consistent and reliable delivery of EG products in the U.S. and Asian markets.

Company Background

MEGlobal, a subsidiary of EQUATE Petrochemical Company, is part of the EQUATE Group, the world’s second-largest producer of EG. Dow holds a 42.5% stake in EQUATE. MEGlobal's EG manufacturing facility at Oyster Creek began operations in 2019.

Applications of Ethylene Glycol

Ethylene glycol is used in various applications, including polyester fibers, PET bottles and packaging, antifreeze and coolants, paints, resins, deicing fluids, heat transfer fluids, and construction materials.