MEGlobal lets contract for Texas MEG plant

Dubai-based MEGlobal International FZE, a subsidiary of Kuwait’s first international petrochemical joint venture Equate Petrochemical Co., has let a contract to Jacobs Engineering Group Inc., Dallas, to provide to provide engineering, procurement, and construction management services for its monoethylene glycol (MEG) plant now under construction at Dow Chemical Co.'s currently expanding Oyster Creek petrochemical complex in Freeport, Tex. (OGJ Online, Mar. 28, 2016).

This latest contract follows MEGlobal’s previously undisclosed contract award to Jacobs for the front-end engineering package on the project, which incorporated Dow’s proprietary METEOR ethylene oxide-ethylene glycol (EO-EG) process technology as well as nonprocessing equipment and piping both inside and outside the plants battery limits, the service provider said (OGJ Online, July 8, 2016).

Jacobs disclosed neither the value nor duration of the contract.

First announced in March, the grassroots MEG plant comes as part of MEGlobal’s program to create greater flexibility to satisfy grown demand for ethylene glycol products in the US and Asia-Pacific markets, as well as strategy to expand the company’s global footprint.

The 700,000-tonne/year MEG plant, which will receive ethylene feedstock from Dow’s currently expanding Oyster Creek ethylene production site under a long-term supply agreement, remains on schedule for startup in mid-2019 (OGJ Online, Oct. 26, 2016).

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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