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Opportunities and challenges in syngas-based MEG market under capacity expansion cycle
!!Xu Sen, HighChem

2019-03-21 12:12:59
Xu Sen, HighChem, made his report on Opportunities and challenges in syngas-based MEG market under capacity expansion cycle 

Mr. Xu mainly reviewed the syngas-based MEG market under capacity expansion cycle from three aspects. The syngas-based MEG market faced many difficulties in the decade, but now various problems are gradually solved, and coal-based MEG has also been recognized by most polyester plants. 

At present, the syngas-based MEG is in the expansion cycle, and the operating rate is increasing. Highchem has signed contracts with 23 units, totaling capacity of 8.75 million tons, which will be put into production in the next three years. Mr. Xu pointed out that industrial development drives technological progress. The first is the large-scale reactor and equipment, which greatly reduces the factory's input and let the maintenance more convenient. Secondly, the equipment coordination has rationalized. 

Looking ahead, the price of ethylene glycol will increase due to the increase in demand for polyester before 2022, which is an opportunity for syngas-based MEG. Of course, in the future, the refining and chemical projects will also start production intensively, which is an enormous challenges. Now that MEG has been included in the futures market, but the syngas-based MEG has been temporarily rejected. Mr. Xu said that not all syngas-based MEG are currently unable to meet the standards, but they are not yet fully up to standard, and there is still room for improvement in the future. 

In the face of challenges, Mr. Xu believes that in order to survive in the fierce competition, the cost must first be reduced from technology, equipment, management, capital, and circular economy. In addition, downstream integration should be considered as well as the profit of byproduct.
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