WHAT IS IT?
Monoethylene Glycol (MEG) is a colourless, odourless, sweet-tasting liquid (C₂H₆O₂) produced from ethylene oxide, which is derived from ethylene. It is one of the most important petrochemical intermediates globally.
PRODUCTION
Ethylene → Ethylene Oxide (EO) → Hydration → MEG + DEG + TEG
MEG is the primary product (90%+). DEG (diethylene glycol) and TEG (triethylene glycol) are co-products.
KEY USES
PET (Polyethylene Terephthalate) resin: MEG + PTA → PET. Used for plastic bottles, food packaging, polyester fibre for clothing and textiles. Largest use (~75% of MEG demand).
Antifreeze/coolant: Mixed with water for vehicle cooling systems
Aircraft de-icing fluids
Polyester resins
Heat transfer fluids
TRADE CORRIDORS
Major producers: Saudi Arabia (MEGlobal — world's largest), USA, Canada, South Korea, China
Major buyers: China (world's largest PET producer), Southeast Asia, India, Europe
Tetra relevance: Middle East/South Korea → China/SEA corridor.
PRICING BASIS
No formal exchange. CFR China main Asian benchmark. Prices track ethylene cost (feedstock) and PET/polyester margins (downstream).
SPECIFICATIONS
MEG purity: min 99.9%
DEG content: max 0.05%
Water: max 0.05%
Colour (APHA): max 5
Acidity (as acetic acid): max 0.001%
Specific gravity at 20°C: 1.113–1.115
DEG AND TEG
DEG (Diethylene Glycol): Used in unsaturated polyester resins, polyurethanes, and as a humectant.
TEG (Triethylene Glycol): Used in natural gas dehydration (removes water vapour from pipeline gas).