Dow and MEGlobal, a global leader in the manufacture and marketing of ethylene glycol (EG) products, have finalized an agreement for Dow to supply an additional equivalent to 100 KTA of ethylene from its Gulf Coast operations.

The ethylene will serve as a key feedstock for MEGlobal’s ethylene glycol (EG) manufacturing facility co-located at Dow’s and MEGlobal’s Oyster Creek site.

“Dow’s low conversion costs and feedstock flexibility allow us to leverage cost-advantaged U.S. shale gas,” said Isam Shomaly, Dow’s Vice President of Feedstocks. “This expanded agreement with MEGlobal underscores our dedication to delivering additional value for our shareholders while continuing to reliably serve and innovate with our partners.”

As a subsidiary of EQUATE Petrochemical Company (EQUATE), MEGlobal is part of the EQUATE Group which is the world’s second largest producer of EG. Dow is a 42.5% shareholder in EQUATE. MEGlobal started up its world-scale EG manufacturing facility at its Oyster Creek site in 2019.

“MEGlobal’s Oyster Creek site provides us with greater flexibility to serve our customers with consistent and reliable delivery of ethylene glycol products in the growing U.S. and Asian markets,” said Scott Daigle, MEGlobal’s U.S. Production Director.

EG is used in a number of market applications, including polyester fibers, polyethylene terephthalate (PET) bottles and packaging, antifreeze and coolants, paints, resins, deicing fluids, heat transfer fluids and construction materials.