Monoethylene glycol: Feedstocks
Gulf ethane sets the floor, Chinese coal the swing
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.MEG is made from ethylene (from ethane or naphtha), or from coal via syngas in China, or from bio-ethanol. Feedstock is most of the cost, so Gulf ethane producers set the low end and Chinese coal plants the swing.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Gas Natural gas | about 0.6 t ethylene per t MEG (indicative) | main Gulf and US feed | about 70-80% of cash cost (indicative) | indicative |
| Oil Crude oil | about 0.6 t per t MEG (indicative) | Asia, India | about 70-80% (indicative) | indicative |
| Tc Thermal coal | about 2.5-3 t coal per t MEG (indicative) | China coal-to-MEG | about 40-50% of cash cost (indicative) | indicative |
| Su Sugar | about 1.0-1.1 t ethanol per t MEG (indicative) | bio-MEG (India Glycols) | most of cost | indicative |
Who is low-cost, and why
Saudi, Kuwaiti and US ethane-based MEG is lowest cost. Naphtha-based Asian MEG and Chinese coal-based MEG are higher; coal units shut first when prices fall below about $500/t (indicative).
Raw materials on the commodity table
Oil Crude oilGas Natural gasTc Thermal coalWhat it is made into
| Product | Note |
|---|---|
| PET PET resin | about 28% (indicative) |
| PSF Polyester fibre | about 52% (indicative) |
| UPR Unsaturated polyester resins | small |