WHAT IS IT?
Ethylene Oxide (EO, C₂H₄O) is a colourless, flammable gas at room temperature (boiling point 10.7°C), stored and transported as a refrigerated liquid. It is produced by direct oxidation of ethylene over a silver catalyst. EO is one of the most important petrochemical intermediates but is rarely traded externally — most is consumed captively at integrated sites.
HOW IS IT MADE?
Ethylene + O₂ → Ethylene Oxide (silver catalyst, 200–300°C, 10–30 bar)
Selectivity ~85–90% — balance goes to CO₂ and H₂O.
KEY USES
MEG Production (largest use ~60%): EO + H₂O → MEG (monoethylene glycol) → PET and antifreeze
Ethoxylates (~25%): EO reacts with fatty alcohols/acids → non-ionic surfactants for detergents, shampoos, emulsifiers
Glycol Ethers: Solvents for paints, inks, cleaning products
Sterilisation: Medical device sterilisation gas (kills bacteria and spores at low temperatures)
Ethanolamine: Corrosion inhibitor, gas treating, personal care
WHY EO IS RARELY SPOT TRADED
Extremely hazardous — highly flammable, explosive, and toxic. IMDG Class 2.3. Most EO is consumed within integrated petrochemical complexes. When traded externally, requires specialist pressure vessels and safety protocols.
TRADE CORRIDORS
Major producers: Shell, BASF, Dow, SABIC, Chinese producers
Tetra relevance: Understanding EO is key to understanding MEG supply — EO availability drives MEG production costs.
PRICING
Not openly traded. Internal transfer prices within integrated companies. External prices assessed by ICIS on a contract basis.
SPECIFICATIONS
Purity: min 99.9%
Water: max 0.05%
Acetaldehyde: max 10 ppm
Form: refrigerated liquid
SAFETY
Extremely hazardous. Flammable (explosive range 3–100% in air). Toxic — carcinogen. Requires dedicated storage and handling infrastructure.